Scottish Governments First Home Fund

What is shared Equity?

Buying through a shared equity scheme means you split the cost of purchasing your property with the Scottish government. For example, if your deposit and mortgage pay 90% of your property value then the Scottish government will hold a 10% share. This means when you sell you will receive 90% of the final sale price and the Scottish government will receive the remaining 10%. You still have full ownership rights and title to the property

Who can qualify for the First Home Fund?

The fund is open to all first-time buyers in Scotland and can be used to help both new build properties and existing properties.

What restrictions do you have with the Scottish Home Fund?

• The maximum contribution from the Scottish government is £25,000 or 49% of the property valuation figure or the purchase price whatever is lower
• There is a limit of one application per property
• You can submit an application but you will be limited to one award
  
• The initiative is not available for buy to lets
• You cannot apply to other Scottish government shared equity schemes or have an open application
• You can't use the Scottish Home Fund to cover your legal costs or LBTT
• Once your offer has been accepted on your property you can complete the application form which normally takes 5 days
• McEwan Fraser Legal can help you complete the application form and you must submit your application before legal missives have been concluded
• If you apply for a joint mortgage only one applicant needs to be a first-time buyer
• The administering agent for the scheme is Link Housing and will assess whether you can meet the monthly mortgage payments
• The award letter is valid for 3 months and the settlement of the purchase must be completed within 6 months from the date you conclude missives
• It is a criminal offence to knowingly provide incorrect information
• Builders Part Exchange properties are not allowed

Can I increase my equity stake in the property?

You can only increase your equity by at least 5%.

If your equity share is 90% or higher any further increases must be to 100%

You must get an independent property valuation from a property surveyor on the Scottish governments' panel and is valid for 3 months if you want to increase your equity in the property.