In these times of economic strife where house prices are rising faster than your income, it may seem difficult to imagine being able to afford your own home. We are asked many times - how can I get on the property ladder in Scotland?
There are a number of schemes available to assist with buying a property:-
Shared Equity
- Allows you to purchase a property while only paying a percentage of the valuation (usually a minimum of 60%).
- The remaining percentage is loaned to you by the Scottish Government. The additional loan does not accrue any interest and is linked to the percentage of valuation rather than a specific amount, so if the value of the property decreases, the value of the percentage repayable to The Scottish Ministers also decreases.
- You own the entire property outright and repay the loan if the house is sold or transferred.
Shared Ownership
- Allows you to purchase a share in a property (in multiples of 25%) and rent the remainder from a landlord who owns the remaining share.
- Your mortgage will only be over the share you own.
- You require to enter into a written agreement with the landlord in relation to the share you are renting, setting out the payments due by you each month/week.
- Following the first anniversary of your entry to the property, you will be eligible to purchase a further share (e.g. another 25%, 50% or even 75%).
Right to Buy
- While the ability to meet the criteria for Right to Buy is becoming more difficult (and will be abolished in Scotland), it is still available for some people in social rented accommodation.
- If you live in social rented housing, it may be worthwhile asking your landlord if this is an option for you. If you are able to exercise the Right to Buy, you will be able to purchase your home for a discounted price provided certain conditions are met by you and your landlord.
Next Steps
At TC Young, we have a wealth of experience in acting for both landlords and purchasers in shared equity, shared ownership and right to buy transactions and are recognised as the leading law firm for the social housing sector in Scotland. Please don't hesitate to get in touch to discuss your options.
