Do you want to buy a property but don’t think you can afford to pay the full price? As a current social tenant, you could be eligible for help to buy a home through the Scottish Government’s LIFT Open Market Shared Equity (OMSE) scheme.
“LIFT has helped me get me and my daughter out of our small council flat and able to start a new family home together with a garden.” – Hollie, LIFT buyer
How it works
Through LIFT OMSE, you choose a property to buy on the open market. The Scottish Government contributes between 10% and 40% towards the property price and gets the same percentage back when it is sold. For example, if the Scottish Government contributes 40% of property price, the same percentage is be paid back to the Government when the property is sold. Buyers can choose to increase their share at any point in the future.
You can purchase any size of property if you meet the financial criteria and won’t be overcrowded. To be eligible, properties must be:
- Advertised for sale publicly e.g. on a website, and
- Priced within the maximum price threshold for the area
Priority groups for Open Market Shared Equity
The scheme is currently open to the following priority groups:
· Social renters (people who rent from a Council or Registered Social Landlord)
- People with a disability who can demonstrate a housing need
- Members of the armed forces
- Veterans who have left the armed forces within the past two years
- Widows, widowers and other partners of service personnel who have lost their life while serving in the armed forces within the last two years
- People aged over 60 with a housing need are a priority group who do not need to take out a mortgage.
To find out if you are eligible, complete a free, no obligation application on Link Housing’s website. The scheme is administered by Link Shared Equity on behalf of the Scottish Government.
Case Study: Buying a home in Glasgow
A family of three, currently renting through a Local Authority, with an annual household income of £55,200 and savings of £5,000 bought a 4-bedroom property in Glasgow with the help of Open Market Shared Equity (OMSE).
· Property price: £230,000
· Buyer contribution (their deposit plus mortgage): £138,000
· Scottish Government contribution: £92,000
In this example, the Scottish Government contributes 40% of the price and will get the same percentage back when the property is sold, unless the buyer decides to increase their share. The buyer owns the property outright and there is no ongoing payment towards the Scottish Government’s contribution.
For more information, please visit www.linkhousing.org.uk/LIFT
Eligibility criteria apply. Always seek independent financial advice.