New Supply Shared Equity scheme: information leaflet

What happens when I want to sell my shared equity property?

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 £ 90,000

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 Government.

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 will be responsible for meeting the costs of marketing your house if you sell it on the open market.