After-sale shared equity procedures: guidance

1. Golden Share transactions

In the majority of shared equity transactions, an owner will have the option of increasing their equity stake after the initial purchase to 100 per cent. In certain circumstances however, where there is a highly constrained supply of affordable housing and little or no scope for this supply to be increased, Scottish Ministers may be allowed to retain an equity stake (of around 10% in the case of OMSE transactions or 20% in the case of NSSE transactions) in the property which is known as a 'Golden Share'.

Whether or not a Golden Share will operate in an area will generally be agreed with the local authority. The 'Golden Share' provision potentially applies to transactions undertaken under both the OMSE and NSSE schemes. The 'Golden Share' provision does not however apply to HtB(S) transactions.

Further information on Golden Share transactions (including worked examples) are set out in the Scottish Government's Administrative Procedures for the OMSE and NSSE Schemes. Guidance on buy-back and re-sale properties is located on the Scottish Government website at http://www.scotland.gov.uk/Topics/Built-Environment/Housing/investment/guidancenotes/GuidanceNotes2012/HSGN201211