Scottish Incentives: Shared equity schemes

Looking to buy your first home in Scotland but worried about affordability?

The Scottish Government offers shared equity schemes under the LIFT (Low-cost Initiative for First-Time Buyers) umbrella to make home ownership more accessible. Whether you’re buying a new build or an existing home, these schemes could help you secure your dream property with a smaller deposit and Scottish Government home buying support schemes.

What is LIFT?

LIFT stands for Low-cost initiative for first-time buyers. It is a Scottish Government scheme, designed to help those who cannot afford the full upfront costs of buying a home. The scheme makes homeownership more achievable for first-time buyers, social renters and those who fit within the criteria.

It offers shared equity options, allowing eligible buyers to purchase a property with the government contributing a percentage of the costs. Buyers will typically pay for between 60% and 90% of the purchase price with the government picking up the remaining percentage.

Since its launch in 2007, LIFT has helped more than 12,000 people become homeowners across Scotland.

LIFT includes two main schemes:

• NSSE: New Supply Shared Equity (for new build homes)
• OMSE: Open Market Shared Equity (for existing homes)

NSSE: New Supply Shared Equity

Designed to help those on low and medium incomes, the New Supply Shared Equity scheme helps people buy a new build home through a housing association or from a local council.

With NSSE, you will buy a majority share in the property, between 60% and 80%. The Scottish Government will fund the remaining percentage via a shared enquiry agreement. You will own the home outright, however, the government’s share will be protected with a ‘standard security’ on the property.



 


OMSE: Open Market Shared Equity

The Open Market Shared Equity scheme is designed to help people in Scotland buy a property on the open market, without having to cover the entire purchase price. Unlike NSSE, which is only available on new builds, OMSE is only for existing homes sold via the open market.

With OMSE, you will purchase the larger share, typically between 60% and 90% with the government picking up the remainder. This allows you to buy a home with less deposit and a smaller mortgage.

There are maximum purchase price limits with OMSE. These vary between local authority area and property size. This helps those who need it most. Read more about the specific thresholds.

Who is eligible?

There are strict criteria to qualify for both NSSE and OMSE. To qualify you must fall into one of these categories.

• First-time buyer
• Aged 60 or over
• Social renter
• Disabled buyer
• Member of the armed forces
• Veteran (left the forces within the last two year)
• Bereaved partner of a service member (within two years of their passing)
• Existing homeowner facing a major change in personal circumstances

What are the buyers responsibilities

Even though the Scottish government will own a share of the property, you will be the full legal owner. You will be responsible for the upkeep and other property-related costs, including:

• Mortgage payments on your share
• Buildings and contents insurance
• Repairs and maintenance
• Council tax and utility bills
• Fixtures and fittings

It is important to note that no rent is charged on the government’s share.

Can I sell or increase my shares?

Both schemes offer staircasing, giving the option to buy more shares over time. The New Supply Shared Equity scheme requires you to purchase a minimum of 5% at any one time. Once you own 100% of your property, the government will no longer have any shares in it.

In areas with a shortage of affordable homes, a ‘Golden Share’ may apply. Meaning the Scottish Government retains a 20% share permanently. If this stands for the property you are interested in, it will be made clear beforehand.

Can I sell my property?

If you want to sell your property you will need to notify the Scottish Government or the administering agent who dealt with the initial sale.

Once the property has been valued, the government will receive its current share in the property. For example, if the government’s share is 30%, they will receive 30% of the final sale price. If you have staircased to 100%, you are entitled to keep the full proceeds.

You as the homeowner are responsible for any legal, valuation or selling costs.

Are there any restrictions?

Even though the property is yours, there are rules you must follow

• The property you buy, must be your primary residence. You cannot sublet
• If you want to remortgage, you must notify the housing association or council involved

What are the benefits?

• Lower deposit needed
• No rent paid on government’s share
• Options to increase your share over time
• Access to new and existing homes
• Helps a wide range of people including first-time buyers

How do I apply?

To get started, you can contact your local housing association, council or visit the Scottish Government's official LIFT webpage for more information.

You will be required to provide information about your income, savings and mortgage capacity. Your application will be reviewed by the local council or housing association, who will make the final decision if you qualify for LIFT scheme eligibility.