Equity sharing is a financing arrangement where the property owner and lender both hold stakes in the property's future value, meaning the lender is entitled to a portion of any resale profits, usually resulting in a lower interest rate for the property owner.
A shared equity mortgage is a home loan where the lender is granted a share of the equity, allowing the lender to participate in the proceeds from the resale of the property. After satisfying the unpaid balance of the loan, the borrower splits the remainder of the proceeds with the lender.
