THE ISLE OF SKYE ESTATE AGENCY

NEW SUPPLY SHARED EQUITY SCHEME: HOME FARM, PORTREE

Shared Equity is a new scheme which allows people who are on a modest income to become homeowners.  The principle behind the scheme is quite simple.  Rather than buying a property outright, you buy a percentage ‘stake’ which is affordable to you.

The main attractions of Shared Equity are:

• If you are a current tenant of a Registered Social Landlord or Local Authority, you may be able to purchase a Shared Equity property for as little as 51% of the valuation.  All other applicants must purchase a minimum of 60%. 
  
  
• You can buy any percentage from 51% or 60% up to a maximum of 80% depending on how much you can afford.  The remaining share is owned by the Government.
  
  
• You do not pay any rent on the Government’s share. 
  
  
• Your equity stake can be raised through mortgage, savings or a combination of both.
  
  
• You will pay for your share of the purchase price, along with the legal costs, survey fees and any other costs associated with the purchase.
  
  
• Savings or Capital Gains from a previous owned property over £5,000 is taken into consideration.  As a general rule, you may keep the first £5,000 and 90% of the balance is expected as a contribution towards your equity stake (i.e.  £12,000 savings leaves a balance of £7,000, 90% of which means a contribution from you of £6,300). 
  
  
• The Shared Equity property must be the only house owned by you.   

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It is important that if you retain an interest in the acquisition of the properties you arrange for your interest to be formally noted to this Agency, otherwise a sale may be concluded or a closing date set without you having been advised.