Buy a home in partnership with a registered social landlord

The Low-cost Initiative for First-Time Buyers (LIFT) scheme aims to assist people on low incomes to buy their own home, but who cannot afford to do so, on their own. The Open Market Shared Equity Pilot scheme allows them to do this with a percentage of the value of the property.

In Scotland the Government has a commitment to help people to become homeowners. It is trying to help low earners, and in particular first time buyers, who can use the Open Market Shared Equity Pilot to buy a home in partnership with a registered social landlord.

The scheme is part of the Government’s assistance package: the Low-cost Initiative for First-Time Buyers (LIFT). LIFT shared ownership aims to assist people on low incomes who would like to own their own home, but who cannot afford to do so on their own.

LIFT shared ownership began in January 2008 in a number of areas in Scotland, where there were few affordable homes for sale.

The Scottish Government gives registered social landlords – normally a housing co-operative or a housing association – grants to help them fund part of the price of a property. The buyer will fund between 60 and 80% of the price, the rest is paid for by the grant.

For example, if you pay 75% of the price and the grant pays for 25% of the price, you own the property outright, and retain a 75% stake in its value, whatever the change of value in the property over time. When you come to sell the property, you would take 75% of the property value and the registered social landlord would take 25%. At no stage do you pay any rent to the registered social landlord.

Eligibility for LIFT shared ownership is dependent upon on your earnings and you will have to declare all sources of your finances, such as:
• Gross earnings (per couple if appropriate)
• Other income (benefits, interest, pension, tax credits, dividends)
• Personal contribution *

* Personal contribution to the funding could include the use of savings or gifts, such as building society accounts, fixed-term investments, endowment policy cash-in, property, redundancy money, pension lump sum.

£5,000 of a personal contribution can be kept, but above that 90% of the personal contribution will count towards the cost of buying the property.