We were able to choose the property that we wanted to live in and could move into a house that was much bigger
Find the right home and negotiate a purchase price.
Fund 5% of the purchase and receive 15% of any price increase.
Secure your home - stay longer or sell your investment after 5 years.
OnStep is a new way of getting onto the housing ladder with the help of the crowd.
Get the benefits of a shared-ownership home without the mortgage and without the restrictions of a shared-ownership lease.
|
Shared Ownership | |
|---|---|---|
| Benefit from increase in prices | ||
| Mortgage-free with no debt | ||
| Existing homes on open market | ||
| Staircase up in small amounts |
You provide an equity loan for seven years to the company that purchases the home for you and pay monthly rent to that company.
You receive a share of the house price increase, which you can either use as a deposit to buy the house or redeem by selling your investment.
Your capital is at risk and dependant on the value of the property. It is not protected by the Financial Services Compensation Scheme and if property prices fall, you may get back less than what you invest. If there is a delay in the sale of the property, investments may not be repaid on time.
Please read Key Risks before investing.
You will enter into a rental agreement with us in the standard form
(of an Assured Shorthold Tenancy, 'AST' ).
Key features of the agreement are:
Please note that the AST and our conduct in relation to it is NOT regulated by the Financial Conduct Authority. It is regulated separately by government legislation that is designed to protect the fair interests of tenants and landlords.
Your agreement will be for seven years, but you alone will have the right to end it at any time after 5 years.
You will accept the property in its current condition and will be responsible for full maintenance and repair of the property, as if a home-owner. Learn more
Your rent will increase at the start of the third year and every year after that in line with the rate of inflation. Learn more
You will have a right to buy the property any time after 5 years, at market value, provided that you are still the tenant under the AST and are complying with it.
You make an investment in the home as a P2P investor for a 7 year term, and you do not pay a rent deposit. You are NOT entitled to an early return of your investment, even if you end your tenancy early (i.e. after 5 years).
As a longer term tenancy, your AST will be registered at the Land Registry and we will assist you with this.
Your capital is at risk and dependant on the value of the property. It is not protected by the Financial Services Compensation Scheme and if property prices fall, you may get back less than what you invest. If there is a delay in the sale of the property, investments may not be repaid on time.
Please read Key Risks before investing.
We understand that life is full of unexpected surprises. You may wish to relocate to pursue an exciting opportunity or you may wish to put down roots and stay longer. Wherever life leads you, OnStep offers you the flexibility that you need.
You have an initial contract for seven years. If you are coming to the end of it, you can request us for a new one.
You have the right to buy the home after five years and can use your equity investment towards your mortgage deposit.
You can break the rental contract after five years. You can also request us to try to sell or refinance the home then, so you can redeem your investments early.
You can increase your share in the value of the home in small amounts, as and when you can afford to.
We may try to find a new tenant to buy out your loans or may agree to sell the home if our lenders do not suffer a loss.
We may allow you to sub-let the home or we may try to find a new tenant - but there is no guarantee and there may be a penalty to pay.
The initial rent is set at a flat 10% discount to market and is further reduced to reflect the size of your investment.
For example, if you fund 10% of the purchase you will pay 81% of the market rent. This is fixed for two years and then increases annually at the rate of inflation.
We will pay for the building insurance, which will cover for perils such as fire, storm, flood etc.
You will bear all other responsibilities - you will have to maintain the home and carry out all repairs. In return you will receive a discounted rent and a long term tenancy (7 years).
The property purchase is partly funded by a 70% first charge mortgage, which allows you and the equity lenders to share the full increase in value of the property in proportion to your funding.
You can purchase parts of the equity loan from the other crowd lenders on the OnStep secondary marketplace from as little as £100 and gradually increase your investment in the property.
Unlike a traditional rental agreement, with OnStep there are no deposits to pay. Instead your funds are invested in the property so that you can have a share of any increase in value. You also get an option to buy the home after five years.
You may have to, but the good news is that you can invest through your ISA account which can make your returns completely tax free.* You can use your existing ISA funds from previous years and add £20,000 for the current tax year.
Enjoy zero hassle, tax efficient investment in UK residential property: