Homes sceme to help first time buyers
01 January 2010
Almost 100 new homes are to be offered for sale through a low cost ownership scheme called Shared Equity. Unveiled by the Scottish Government more than a year ago, the initiative is designed to help people on low incomes who wish to own their own home to get a foot on the property ladder.
Instead of having to fund the complete purchase from day one, the new owners pay between 60% and 80% of the value.
After two years they can increase their stake and a year later buy the rest.
The Shared Equity homes will be available at new sites currently being developed by Queens Cross Housing Association.
Six one bedroom flats currently valued between £92,000 and £97,000 will be offered in Garscube Road, Maryhill and 21 two bedroom properties with an estimated value of £118,000 to £129,000.
They will have secure private parking, lift access and high energy performance through low cost heating with solar hot water.
In Oban Drive, North Kelvinside, eight one bedroom flats and sixteen two beds currently ranging in price from £105,000 to £140,000 will be offered for Shared Equity.
The two bedroom properties will have en-suite bathrooms and all will have off street parking.
Properties at Murano Street, Firhill will be close to the Forth & Clyde Canal and enjoy a superb vista across Glasgow.
Five one bed flats currently valued from £99k to £105k will be available plus 37 two bedroom properties, some with en-suite ranging from £110k to £135k.
No rent is paid under Shared Equity and in addition to paying their loan, owners are fully responsible for all payments, costs, maintenance and upkeep of their property.
The scheme is aimed at first time buyers and the Government say priority must be given to those on relatively low incomes and people with disabilities. Previous homeowners may qualify if they have had a significant change in their household circumstances.
The amount of share buyers take in a property is determined by guidelines about an applicant’s income and savings. Purchasers must contribute 90% of any savings they have over £5000 towards the purchase price.
The balance of the equity is held by the Scottish Government and they get that share of the proceeds after any future sale.
The Association has produced a booklet that gives guidelines on Shared Equity. Assuming no savings contribution, to acquire a £92,000 property purchasers will generally require a single income of between £15,775 and £21,000 or a joint income of £19,000 to £25,400.
Although work is due to start on all three developments this year, they are not due for completion until 2011. Anyone interested in the scheme can complete a notification of interest form, available from the Associations offices.
The three developments will also include a large number of homes for rent. At Garscube Road, 34 supported flats for the elderly will be constructed and another 90 for rent. At Murano Street there will be 98 flats for rent and in Oban Drive another 56 homes for rent.
Click here to view Shared Equity Leaflet
Click here to view Notification of
Click here to view Development Details
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