Opinions & Advice re Shared Equity Scotland

Tinkerbelle1

We currently looking into a shared equity scheme to get onto the property ladder.
The link to the scheme is this http://www.communitiesscotland.gov.uk/stellent/groups/public/documents/webpages/cs_008156.hcsp

We are looking into the 'open market scheme'. This means we could have a house value for up to £155,000 but pay for 60%-80% of it. You own the property outright, however the government own a 20% or whatever stake in the value, so when it comes to selling that's when you seem to loose some of the money. However you do have options to increase your stake to 80% then up to the full 100%

Id like everyone's advice and opinions for this please.

If there is anyone that has successfully gone through this scheme to purchase their first home I'd love to hear from you too please.

Thanks

iscrimger

I would like to hear from anyone too. I am STILL waiting for an application form I think I've had my name put on 'the list' 4 times now and once by an MSP... yet still I wait for my form. Normally I wouldn't mind but my current situation means speed is fairly crucial. They had a form appear online for application requests and I did this and it told me a few working days - it's been 7 now.

A friend of mine knows someone who used the scheme last year and the general impression I got was that 'speed' doesn't play a part in the scheme.

From your figure of £155,000 I'm guessing your in the East Region and looking for a 5 room property. (4 bed home). I'll let you know if my form arrives this morning.

Tinkerbelle1

They have ran out of forms, I ordered one online too.
I then called once I hadn't yet recieved it and they told me that they have ran out and waiting on getting more from the printers and they have a list of who is waiting for one. So they are posting everyone's out, they think towards the end of next wk that they will receive them.

Yes east, what about you?

iscrimger

I'm the same. Edinburgh.

Tinkerbelle1

iscrimger wrote: »

I'm the same. Edinburgh.

The trouble is trying to find the right size of house for the right price. I think this will be a task as there doesn't seem to be alot on the market at the moment.

Do u have any idea if u can offer less for what a fixed price is on the market for? if the lesser offer is refused would u have to keep paying to make offers on the same property?

iscrimger

Tinkerbelle1 wrote: »

The trouble is trying to find the right size of house for the right price. I think this will be a task as there doesn't seem to be alot on the market at the moment.

Do u have any idea if u can offer less for what a fixed price is on the market for? if the lesser offer is refused would u have to keep paying to make offers on the same property?

You can but they don't have to accept. The cost of making offers will be included in the solicitors fee's - I guess everyone will be different so the cost probably varies.

Under the scheme you are permitted one room more than you require. So 2 people - 3 rooms. 3 people - 4 rooms. 1 room is the Living Room and the remainder Bedrooms. Kitchens, Dining, bathroom etc don't count.

I'm guessing you have kids if you're looking for a 4-bed property. Plenty of 3-beds out there but 4's seem to be rare!

If you see a property you're interested in goto Zoopla.co.uk and search the area for sold prices to get an idea of what other recent sales were to give you an idea of what to offer. There are various other similar sites but you don't need to pay or registered to use zoopla.

Tinkerbelle1

iscrimger wrote: »

.

Under the scheme you are permitted one room more than you require. So 2 people - 3 rooms. 3 people - 4 rooms. 1 room is the Living Room and the remainder Bedrooms. Kitchens, Dining, bathroom etc don't count.

.

They told me that if the house has a seperate dining room with a door seperating the livingroom and diningroom then this counts as a seperate room. So 3 bedrooms and livingroom and dining room 5 room house. I hope they have given me the correct info.

iscrimger

Tinkerbelle1 wrote: »

They told me that if the house has a seperate dining room with a door seperating the livingroom and diningroom then this counts as a seperate room. So 3 bedrooms and livingroom and dining room 5 room house. I hope they have given me the correct info.

Hmmm, they do tell you what your limits are if your application is successful so we'll have to see!

Fat_Fairy

We bought a shared equity home from the local Housing Association (Orkney) - slightly different i know, we bought a 25% tranche with option to 'staircase' (buy further shares). We think it's excellent.

Tinkerbelle1

Fat_Fairy wrote: »

We bought a shared equity home from the local Housing Association (Orkney) - slightly different i know, we bought a 25% tranche with option to 'staircase' (buy further shares). We think it's excellent.

Thank you for that


[QUOTE=iscrimger Hmmm, they do tell you what your limits are if your application is successful so we'll have to see!

We'll have to keep eachother posted on what's happening on weather we are successful, and when we get our applications through etc.

Joyful

Both my children bought through the Homestake with 60% value of the property. It enabled them to get on the housing market. One in Edinburgh , one in East lothian. My Daughter was advised a dining room was one room too many. As there is no rent to pay this makes it more affordable and the option is there to purchase more of the price when wanted.