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.
|Benefit from increase in prices|
|Mortgage-free with no debt|
|Existing homes on open market|
|Staircase up in small amounts|
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% fixed 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.
You may have to, but the good news is that you can invest through your ISA account to 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.
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.
Enjoy zero hassle, tax efficient investment in UK residential property: