Open Market Shared Equity Scheme: buyer information leaflet
The Open Market Shared Equity Scheme helps first time buyers on low to moderate incomes to buy a home on the open market (within a certain price threshold) where this is sensible and sustainable for them to do so.
What happens when I want to sell my shared equity property?
You should contact the administering agent in the first instance.
If, for example, you have an 80 per cent stake in your property when you want to move, then you will get 80 per cent of the selling price when it is sold. The Scottish Government will receive the remaining 20 per cent. The percentage you get is not affected by changes in the value of your property over time. In this example, if the value of your house increases, you will benefit from 80 per cent of the increase. The other 20 per cent of the increase will go to the Scottish Government. You should be aware that improvements you have made to your home will be reflected in the valuation when you sell your home and they will not be deducted from the value of your home.
Example
An example of when the value of your property increases
| Initial property value | £100,000 |
|---|---|
| Your stake - 80 per cent | £80,000 |
| Scottish Government's stake - 20 per cent | £20,000 |
| Sale price | £140,000 |
| You receive 80 per cent | £112,000 |
| Scottish Government receives 20 per cent | £28,000 |
| In this example, the value of your stake has increased from £80,000 to £112,000. | |
The next example shows what happens if the value of your property decreases.
Example
An example of when the value of your property decreases
| Initial property value | £100,000 |
|---|---|
| Your stake – 80 per cent | £80,000 |
| Scottish Government's stake – 20 per cent | £20,000 |
| Sale price | £ 0,000 |
| You receive 80 per cent | £72,000 |
| Scottish Government receives 20 per cent | £18,000 |
| In this example, the property value has fallen by £10,000. You have an 80 per cent stake and make a loss of £8,000 (80 per cent of £10,000). | |
If you have made any improvements to your home, these will be reflected in the valuation. You will not be reimbursed for the cost of any improvements made at your own expense. The amount you sell your house for will be split in proportion to the stakes held by you and the Scottish Ministers.
Example
An example of when you improve your property
| Initial property value | £100,000 |
|---|---|
| Your stake – 80 per cent | £80,000 |
| Scottish Government's stake – 20 per cent | £20,000 |
| Improvements funded by you | £10,000 |
| Sale price | £150,000 |
| You receive 80 per cent of £150,000 | £120,000 |
| Scottish Government receives 20 per cent of £150,000 | £30,000 |
You should be aware that you will be responsible for meeting all costs (including those incurred by the administering agent and Scottish Ministers) when you sell your home.
On the sale of your home the equity percentage which is paid to the Scottish Government is based on the sale price of the property regardless of whether the property has increased or decreased in value and regardless of whether the sale price is above or below the valuation figure.
Example
An example of when you sell your home which was purchased above valuation
| Initial property value | £100,000 |
|---|---|
| Purchase Price | £110,000 |
| Your stake – 70 per cent | £70,000 (mortgage & deposit |
| Applicant contribution | £10,000 (above valuation) |
| Scottish Government's stake – 30 per cent | £30,000 |
| Sale price | £150,000 |
| You receive 70 per cent of £150,000 | £105,000 |
| Scottish Government receives 30 per cent of £150,000 | £45,000 |
Contact
Email: HousingMarkets@gov.scot
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