PAYING BACK YOUR SHARED EQUITY MORTGAGE (‘SEM’)
Updated September 2019
If you have a SEM that is solely owned by Phoenix Shared Equity 2 – Cell A or B or Phoenix Shared Equity 3 S.ár.l. (Phoenix), Hampton Mortgage Servicing Limited (HMS) are the appointed servicer of your SEM.
If you have a SEM that is also shared jointly with Homes England (formerly Homes and Communities Agency) please contact Target Servicing Limited directly on 0345 848 0235 or email email@example.com as they are the appointed servicer for your SEM. As Target are the appointed servicer, HMS is not able to assist you in the day to day servicing of these SEMs.
HOW DO I REPAY MY SEM IN FULL?
In most cases, the amount required to redeem your SEM is the shared equity percentage (some loan agreements differ so make sure you check your original documentation) of the current open market value of the subject property at the time of repayment, plus any interest and expenses due, where applicable.
The open market value is calculated using a variety of methods, depending on your circumstances and preferences. Please be aware that SEM agreements may differ and so the process laid out below applies to the majority of SEM agreements but not all, so please contact HMS first before you make any arrangements.
The standard open market value calculation methods are:
A. IF YOU ARE SELLING YOUR PROPERTY
The sale price of your property would be accepted as the current open market value. Please note the sale price needs to be confirmed to HMS by the solicitor acting on your behalf.
B. IF YOU WISH TO RETAIN OWNERSHIP OF THE PROPERTY AND/OR REMAIN LIVING THERE
HMS needs to, on behalf of Phoenix, establish the current open market value of your property. In order to achieve this there are three main options available to you. You are at liberty to choose the one that best suits your preferences and as per the terms of your SEM agreement:
1. You can obtain three independent estate agent written valuations from an ‘in-person’ visit and submit these to HMS, either by email or post to the addresses outlined below. In most cases these valuations are provided free by estate agents. Phoenix, in most cases, will use the average of the three valuations to calculate the current open market value. Please be aware these valuations are also compared against comparable valuation data to ensure they are consistent;
2. HMS can arrange, on your behalf, an external RICS valuation to be undertaken on your subject property where a Chartered Surveyor visits your property and provides a formal valuation report including a current open market value. In most cases, this may not require an internal inspection due to the age of your property, please contact HMS on the email address or phone number below for a quote to be provided. HMS will provide you with a copy of the valuation report when received. Phoenix will usually accept this RICS valuation as the current open market value.
3. HMS can arrange a full internal RICS valuation, depending on the specific terms of your SEM agreement you may be liable for some or all of the cost of this RICS. Please contact HMS on the email address or phone number below for a quote to be provided. Again, we will provide you with a copy of this valuation report when received.
C. IF YOU WISH TO PART EXCHANGE YOUR PROPERTY
If you are part exchanging your property, you will need to obtain a RICS valuation (option 2 or 3 above) to calculate the current open market value.
HOW DO I MAKE A PART PAYMENT AGAINST MY SEM?
Most SEM contracts allow all customers to make lump sum payments against their SEM. Please review your SEM agreement for the details and then phone HMS on 0203 675 9959, and a Servicing Associate will guide you through the process for making a lump sum payment.
WHAT DO I DO IF I CANNOT REPAY IN FULL?
If you cannot repay in full, please contact us at the earliest opportunity to discuss your options.
CAN YOU PROVIDE ME WITH SOME FINANCIAL ADVICE?
HMS is not able to provide you with any financial advice, as they are not authorised to do so. You are therefore recommended to either consider obtaining your own independent financial advice, citizens advice or HMS can (with your consent) pass your information over to an independent firm of financial advisors who are specialists at refinancing SEM’s. Please note HMS are not connected with this firm in anyway. Please contact HMS for further details.
HOW DO I CONTACT HMS?
Please contact us on 0203 675 9959 or email firstname.lastname@example.org.
Our opening hours are 9:00am – 5.30pm Monday to Friday. Please note, we aim to respond to all queries within 3 working days.
You can write to us at: South Wing, 1st Floor, Molex House, Millennium Centre, Farnham, Surrey, GU9 7XX.
We look forward to speaking to you.