Shared equity loans have been a feature of the mortgage market for several years and have primarily been offered by builders, local authorities and the govt (as Help to Buy).
The shared equity loan to the company purchasing the property is secured by a second charge on the property and ranks after the fixed mortgage, similar to 'Help to Buy'.
The amount due is a fixed percentage of the property value. For example, if the tenant has an investment of 6%, the amount due to equity lenders will be 80% of the property value.
The interest rate paid on the loan is fixed and increases every year at the rate of inflation. Any variable costs incurred in rental management is absorbed by OnStep.