Post Sales Information for Buyers

Repayment of Scottish Government Equity Share

The shared equity agreement that you entered into with Scottish Ministers runs indefinitely. This means you can repay the Scottish Ministers’ equity stake whenever you wish. You can also decide to acquire some of Scottish Government's retained equity stake at any time after you move in to your home. You are required to repay the equity stake to Scottish Ministers upon the occurrence of certain events (which are set out in your shared equity agreement), the most common one being when you sell your home.

Should you wish to purchase an increased share in your shared equity home you can do so by doing what is called ‘tranching-up’ and the following will apply:-

• You can tranche up any time after the date that you move in to your home;
• When you tranche up you must buy a minimum of 5% of the market value of your home (please be aware that if your equity share is above 90% then you must tranche up to 100%).
• You can tranche up regardless of whether the open market value of your home has increased or decreased.

The administering agents for each of the schemes will write to all home owners every five years to encourage you to ‘tranche-up’.

You should be aware that will you be responsible for meeting all costs (including those incurred by the administering agent and Scottish Ministers) when you tranche up. You will be informed what these costs are at an early stage by the administering agent.