Shared Equity

Choosing the right scheme for you depends on what type of property you want to buy and how much you can afford to contribute towards the cost of your home.

Each scheme has its own eligibility criteria and property price thresholds, use the links below to find out more.

• New Supply Shared Equity Scheme – Up to 40% funding towards the cost of a new build property

What is shared equity? 

Buying through a shared equity scheme means that you pay for the majority stake of the property – usually through a combination of deposit and mortgage – and the Scottish Government provides funding for the remaining stake. The Scottish Government holds its stake under a ‘shared equity agreement’, which is paid back either by increasing your stake over time or when the property is sold.  

For example, if you pay for 85% of your home, the Scottish Government will hold a 15% stake and will get the same percentage back when the property is sold, or when you choose to increase your equity stake.  

When you buy through a shared equity scheme, you own the property outright and have the full title to the property.   

Priority groups

The New Supply Shared Equity scheme is aimed at households on low to moderate incomes, who can demonstrate they can’t buy a new build house to suit their needs without help from the NSSE scheme.

The scheme is available to all first-time buyers, however, priority is given to:

• people aged over 60
• social renters (people who rent from the council or a housing association)
• disabled people
• members of the armed forces
• veterans who have left the armed forces within the past two years
• widows, widowers and other partners of service personnel for up to two years after their partner lost their life while serving
• people who have previously owned a home and have experienced a significant change in circumstances, for example, a marital breakdown

Selling a shared equity property 

When you are ready to sell your home, you will repay the equity stake held by the Scottish Government. For example, if you have an 80% stake in your property when you want to sell, you will get 80% of the sale price and the Scottish Government will get 20%. The percentage to be repaid is not affected by any change to the value of the property, so the share you receive back could be worth more or less than your initial contribution.  

Responsibilities of a shared equity owner  

As you own the property outright, you will have the same responsibilities as any other homeowner. These include; mortgage repayments, factoring, property repairs and maintenance, buildings and contents insurance, council tax and utility payments. These costs should be considered when calculating if you can afford to buy a property. We would recommend speaking to an independent financial adviser or mortgage adviser to discuss your options before proceeding with an application.