What is New Supply Shared Equity?
New Supply Shared Equity is a Government run shared equity scheme which allows you to purchase a brand new home but to share the cost with the Scottish Government.
The scheme is brought to you by DGHP and means you can buy a new home and pay as little as 60% or as much as 80% of the full purchase price.
If you think you can’t afford to buy a new home, it’s time to think again. This scheme run by DGHP is the most affordable shared equity scheme in Dumfries and Galloway and helps bring home ownership into the reach of potential buyers who never thought buying a home would be something they could afford to do.
Basically, rather than you having to fund the whole cost of buying your home, up to 40% of the purchase price can be funded for you. Under the terms of the scheme, you own 100% of the property from the outset, while only having an initial outlay of between 60 and 80%. The outstanding balance is funded by the Scottish Government and acts as an interest free loan.
How does it work?
Housing associations like DGHP receive government grants which go towards the cost of the house you buy. So if you can afford a mortgage that meets say, 75% of the cost, the remaining 25% is provided by the Scottish Government for you. You will always own the whole property no matter what changes there are in its future value, up or down.
How do I find out if I’m eligible?
NSSE is designed for people on low incomes, so we have to assess whether you qualify. The amount you contribute to your share of the house cost must be the maximum mortgage that you can afford plus any other personal contributions you can make. When you apply you will have to state all your sources of finance – which will include things like single person’s or couples’ gross earnings and savings, together with other income such as sickness or welfare benefits, bank interest, superannuation earnings and so on.
How much of a stake can I take?
Your stake will normally be between 60% and 80%. The maximum stake you can start with is 80%, but in most cases you will be able to increase that over time to 100%. The scheme does not allow you to reduce your percentage.
What should I know about the property?
Homes available under the scheme are a mix of sizes designed for a range of housing needs. Your new home must be your sole residence. You will be able to buy a home that is two bed spaces more than the number of people in your household; so a couple could buy a house with two double bedrooms, or a double and two single bedrooms.
Like any outright owner of a property, you will be responsible for all of your home’s running costs, such as maintenance, insurance, cost of repairs (including common or shared maintenance or service charges where they apply) and Council Tax.
What happens if I want to move home?
If you want to move and sell your home, you will get your share of the selling price, ie 75% stake = 75% of the selling price. DGHP would receive the remaining 25% which is then put directly towards providing more housing.
Where can I find out more?
We have more information on our own NSSE properties here.