New Supply Shared Equity scheme: information leaflet

Information on the New Supply Shared Equity scheme (NSSE), part of the Low-cost Initiative for First Time Buyers (LIFT).

What is New Supply Shared Equity and how does it operate?

The New Supply Shared Equity scheme aims to help people on low to moderate incomes to purchase a new build home where it is sustainable for them. It is part of the range of assistance from the Scottish Government under the Low-cost Initiative for First-Time Buyers ( LIFT).

The homes that are provided will be for a variety of household sizes and designed to meet a range of housing needs.

Under the New Supply Shared Equity Scheme, the Scottish Government will keep a financial stake in the property so you do not have to fund all of it. You will pay for the majority share in the property (normally between 60 and 80 per cent) and the Scottish Government will hold the remaining share under a shared equity agreement which they will enter into with you. Although you will own the property outright, the interests of the Scottish Government will be secured by a standard security on your property.

If you can afford a 75 per cent share of a property the Scottish Government contribution will make up the remaining 25 per cent. You will have a 75 per cent stake in its value, whatever changes there are to the property's value over time. The price that the property is worth when you buy it is worked out by the District Valuer or another independent, professionally qualified valuer.

You will have to appoint a solicitor to act on your behalf to complete the work involved in buying a home. A solicitor acting on behalf of the Scottish Government will deal with the Scottish Government's interest in the purchase.

You will pay for your share of the purchase price in the usual way, along with legal costs, survey fees and any other costs associated with the purchase. You will also pay for the documenting and securing of Scottish Government's interest including all registration dues and (if applicable) stamp duty. You do not pay any form of rent on the property although you are advised to check if there are factoring charges that you will be required to pay.



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