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What happens when I want to sell my shared equity property?
If, for example, you have an 80 per cent stake in your property when you want to move, then you will get 80 per cent of the selling price when it is sold. The Scottish Government will receive the remaining 20 per cent. The percentage you get is not affected by changes in the value of your property over time. In this example, if the value of your house increases, you will benefit from 80 per cent of the increase. The other 20 per cent of the increase will go to the Scottish Government.
Example |
An example of when the value of your property increases |
Initial property value | £100,000 |
Your stake - 80 per cent | £80,000 |
Scottish Government's stake - 20 per cent | £20,000 |
Sale price | £140,000 |
You receive 80 per cent | £112,000 |
Scottish Government receives 20 per cent | £28,000 |
In this example, the value of your stake has increased from £80,000 to £112,000. |
The Scottish Government does not make a profit. Any surpluses go towards providing more affordable housing.
The next example shows what happens if the value of your property decreases.
Example |
An example of when the value of your property decreases |
Initial property value | £100,000 |
Your stake - 80 per cent | £ 80,000 |
Scottish Government's stake - 20 per cent | £20,000 |
Sale price | £90,000 |
You receive 80 per cent | £72,000 |
Scottish Government receives 20 per cent | £18,000 |
In this example, the property value has fallen by £10,000. You have an 80 per cent stake and make a loss of £8,000 (80 per cent of £10,000). |
If you have made any improvements to your home, these will be reflected in the valuation. You will not be reimbursed for the cost of any improvements made at your own expense. The amount you sell your house for will be split in proportion to the stakes held by you and the Scottish Government.
Example |
An example of when you improve your property |
Initial property value | £100,000 |
Your stake - 80 per cent | £80,000 |
Scottish Government's stake - 20 per cent | £20,000 |
Improvements funded by you | £10,000 |
Sale price | £150,000 |
You receive 80 per cent of £150,000 | £120,000 |
Scottish Government receives 20 per cent of £150,000 | £30,000 |
You will be responsible for meeting the costs of marketing your house if you sell it on the open market.
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