What Is Shared Equity?

Shared Equity is a brand new scheme to help people on a low income who want to own a home but can’t afford the full price. 'Shared Equity was launched by the Minister for Communities, Malcolm Chisholm, on 8 March 2005 and has been developed by Communities Scotland, the Scottish Executive's housing and regeneration agency. The principle is simple – a grant is given to a registered social landlord to help them fund part of the price of a Shared Equity property. You will pay the
majority share in the property – normally between 60
and 80 percent of the price – and the registered social
landlord will use the grant to pay for the rest.
The Shared Equity owner is the outright owner and
responsible for paying off the mortgage and all other
costs associated with the purchase and running of the
property – just like any homeowner. You do not pay
any rent.

After two years the Shared Equity owner can if they want
increase their share of the property if they feel they can
afford to do so.

When the Shared Equity owner decides to sell the house,
both the registered social landlord and the Shared Equity
owner receive their share of the property value. It’s that
simple.