Shared Appreciation Mortgages
A Shared Appreciation Mortgage (SAM) is lifetime mortgage secured on your main home.
If you have a SAM, you don’t pay interest and there aren’t any monthly repayments. Instead, when you pay off your mortgage, you also pay a share of any increase in your home’s value.
We only offered SAMs in 1998 and offered a maximum original loan-to-value (LTV) ratio of 25%. So if your home was worth £100,000, you could only borrow up to £25,000.
Paying off your SAM
If you have a SAM, it has to be paid off when you sell your home, or after the death of the last borrower.
There are two parts to pay off: your mortgage balance and a share of any increase in your home’s value (the appreciation).
1. Mortgage balance
Your mortgage balance will still be the same as the original loan, because you don’t pay interest and there aren’t any monthly repayments.
This would mean that if you’d originally borrowed £25,000, you’d still owe £25,000.
2. Shared appreciation
The amount of shared appreciation you owe is a percentage of any increase in your home’s value, typically three times the original LTV ratio. So, if your LTV ratio was 25%, you’d owe 75% of the shared appreciation.
This would mean that if your home had gone up by £100,000, you’d owe 75% (£75,000) and keep 25% (£25,000) of the increase.
Note: You may also need to pay a £150 admin fee unless you paid it when you took out the mortgage.
Getting your home valued
Before you can pay off your mortgage, we have to value your home so we can calculate your final redemption statement.
It’s best to ask us for a valuation only when you have a firm buyer for your home, or you’ve decided to pay off your mortgage. This is because your final redemption statement is only valid for three months. If it expires, you’ll need another valuation, which we may charge you for.
It normally takes about four weeks for us to carry out the valuation and then send you the redemption statement.
How to get a valuation
You can ask us for a valuation in writing or by email. Please include a contact name and phone number, so our certified valuer can then arrange the appointment.
Write to us at
SAMs Mortgage Team
Mortgage Services
PO Box 8575
Leicester
LE18 9AW
We can also give you an estimated redemption amount based on your own property valuation. But we’ll still need to do an official valuation to calculate your final redemption statement.
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Before you start any work costing more than £10,000, please get in touch so we can carry out an initial valuation. And then contact us again within a month of completing the work, so we can revalue your home. We’ll then be able to use the difference in value when we calculate your final redemption statement.
Get help from our hardship scheme
Our SAM hardship scheme can help if your situation has changed and you’re having financial difficulties. We offer grants of up to £10,000 to adapt your home, or assisted loans to help you move to a more suitable home. To apply you have to be the mortgage holder.
Download our SAM Hardship Scheme leaflet [PDF 306KB]
To find out more or to see if you’re eligible, please email us.
Or you can call us on 0333 202 7580. We’re here Monday to Friday from 7am to 8pm, excluding bank holidays, and weekends from 7am to 5pm.
Information for executors of a will
Shared Appreciation Mortgages have to be repaid within 18 months of the owner’s death. If you’re the executor of their will, there are a few things you’ll need to do. But don’t worry, we’re here to help every step of the way.
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We’ll need to see some documents once they become available:
- Death certificate – original or a copy certified by us in a branch (we’ll return originals)
- Grant of probate or letters of administration – only if the mortgage was in a sole name
- Will – a copy certified on each page as a true copy of the original by a solicitor, or by us in a branch.
Until we receive the grant of probate, the only mortgage account information we’re allowed to provide is the date of death account balance. And we’re only able to give this to a named executor.
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Once you need the final redemption amount, please ask us for a valuation. You can do this in writing or by email. Please include a contact name and phone number, so our certified valuer can then arrange the appointment.
Contact us about your SAM
If you have any questions about your mortgage, please call us on 0333 202 7580. We’re here Monday to Friday from 7am to 8pm, excluding bank holidays, and weekends from 7am to 5pm.
Or you can get in touch in writing or by email.
Write to us at:
SAMs Mortgage Team
Mortgage Services
PO Box 8575
Leicester
LE18 9AW
Extra help and advice
Worried about money? Whatever your situation, we can help you find a way forward. Our practical guides and real-life stories show you how to take control of your finances and turn things around.
Check out our money worries page
And there are a number of organisations that offer free, confidential and impartial help.
- MoneyHelper – go to moneyhelper.org.uk
- StepChange Debt Charity – call 0800 138 1111 or go to stepchange.org
- Citizens Advice – go to citizensadvice.org.uk
- Samaritans – call 116 123 or go to samaritans.org