First Homes Fund: Information for Lenders and Independent Financial Advisers

Repayment of Scottish Government Equity

There is no set deadline for repayment of the Scottish Government’s equity share in a property and no interest will be charged on it. The applicant has the option of acquiring all or some of the Scottish Government’s retained equity share at a time of their choosing. Alternatively, the equity can be repaid upon the occurrence of certain events, the most common being the sale of the property.

If the applicant chooses to increase their equity share the minimum increase must be at least 5%. If the previous equity share was 90% or higher, then any further increase must be to purchase equity up to 100%. This can be done at any time, regardless of the current market value of the property, and the applicant will be responsible for meeting all costs involved.

The equity repayment will be based upon the value of the property at the time of repayment, or the final sale price if it is sold. This applies irrespective of whether the applicant purchased above or below valuation.