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What is Lift?
Lift is the Low-cost Initiative for First Time Buyers . The Open Market Shared Equity Pilot aims to help people on low incomes who wish to own their home but who cannot afford to pay the full price for a house. It is part of the range of assistance from the Scottish Government.
How does it work?
The Scottish Government gives grants to registered social landlords to help them fund part of the price of a property that is for sale on the open market. You will pay for the majority share in the property – normally between 60 and 80 per cent of the price – and the registered social landlord will use the grant to pay for the rest.
For example, if you can afford a 75 per cent share of a property the registered social landlord will pay for the remaining 25 per cent. You will own the property outright and will have a 75 per cent stake in its value, whatever changes there are to the property’s value over time. When you sell your house, both you and the registered social landlord will receive your share of the property value. You do not pay any form of rent to the a social landlord. |
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Who is it for?
The Open Market Shared Equity Pilot mainly aims to help first-time buyers. The Open Market Shared Equity Pilot can, however, help others too. For example, it may be able to help you if you are looking for a new home after a significant change in your household circumstances, or if you have a disability and own a house which doesn’t suit your needs. If you currently own your home or part-own a property, you will have to sell your interest in that home at the same time that you buy a home through the Open Market Shared Equity Pilot. If you live in one of the areas listed and are currently a tenant of a local authority or registered social landlord, you will not be able to buy your existing home from your landlord through the Open Market Shared Equity Pilot, but you may be able to buy a property that is for sale on the open market.
How do I find out if I am eligble?
The property that you buy must be your only home. Although it should be suitable for your current housing needs, you can if you wish buy a home which has one room more than your existing need. For example, a couple would be eligible to buy a home with two double bedrooms. As the Open Market Shared Equity Pilot is aimed at low income households, you will be assessed by the registered social landlord to see whether or not you qualify. To allow this to happen, a form of ‘means testing’ will be carried out.
The amount that you contribute must be the maximum mortgage that you are able to obtain plus any personal contribution that you are able to make. The overall amount must be enough to pay for your stake and cover all the costs of buying a home, such as survey and legal costs. Limits are set on the price you can pay for a property under the Open Market Shared Equity Pilot. You can find out what these limits are at: www.communitiesscotland.gov.uk/lift.
The stake that you hold will normally be determined by the maximum mortgage that you can raise, plus any personal contribution that you are able to make towards the purchase. For example, if a property is valued at £100,000 and you can afford to contribute £70,000 (the maximum mortgage that you can raise plus any personal contribution) you would hold a 70 per cent stake in your home.
If you want download a brochure giving more details on the LIFT scheme click here. |
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