LIFT shared equity, LIFT mortgage, lift mortgages, first-time buyers, new supply shared equity

In its efforts to help people become home owners the Scottish Government is promoting its LIFT shared equity scheme. LIFT stands for Low-cost Initiative for First-Time Buyers, and the New Supply Shared Equity scheme is part of the scheme. It is separate from the Open Market Shared Equity Pilot which enables people to buy homes for sale on the open market in a number of areas across Scotland. Registered social landlords in the scheme offer New Supply Shared Equity properties for sale on the basis of 'shared equity'.

Although New Supply Shared Equity is mainly aimed at first-time buyers, it can also help people in the Armed Forces or veterans, people living in social housing, and people living in private rented housing or with relatives. It may also help people who have had a major change in their circumstances or help those with a disability find a more suitable home.

It works by enabling people to buy a home for between 60 and 80% of its value – according to the maximum mortgage you can get – and the registered social landlord will pay for the rest. There are some circumstances where the percentage can drop as low as 51%, for example, where housing needs mean additional expense, such as disability assistance or sometimes where housing is exceptionally expensive. The maximum stake you can have in a property is 80% in all cases.

Although registered social landlords of the Lift shared equity scheme have information on the legal and financial requirements of the scheme, it is advisable to take independent financial and legal advice before agreeing to buy a property in this way.

When buying a property with the New Supply Shared Equity scheme you own the property outright giving you full title to the property. That also means that you are responsible for all maintenance, insurance, as well as your mortgage and paying tax to your local authority. The good state of repair of your property is your responsibility. These costs need to be taken into account if you’re thinking of buying a property.

Applications should be made to the social landlord responsible for the project.