Open market shared equity

Applicants are required to pass a means test, to show that they cannot afford to buy a property on the open market without assistance from the scheme, but that they do have sufficient means to raise a mortgage and meet the other costs associated with home ownership.

Anyone can apply for OMSE, but priority access will be given to:

• people aged over 60

• social renters (people who rent from the council or a housing association)

• disabled people

• members of the armed forces

• veterans who have left the armed forces within the past two years

• widows, widowers and other partners of service personnel for up to two years after their partner has lost their life while serving

Detailed information about the OMSE scheme can be found in the guidance notes published by the Scottish Government.

The scheme is limited to properties under a certain 'maximum threshold' price.

There are different threshold prices across Scotland, so applicants should check to make sure the home falls under the threshold price for that area.

Applicants will normally purchase a share of between 60 and 90 per cent of a property. Applicants will be expected to secure the maximum mortgage for their income level.

Applicants will usually be able to buy an extra stake in their property. Each additional stake must be at least 5% in any one year.

In some areas, the Scottish government will be able to retain a 20 per cent 'golden share' in the property, which will mean that the maximum stake an applicant can own is 80 per cent.

Occupiers of OMSE properties will be owner-occupiers. They will be responsible for all repairs, and will be at risk of having their property repossessed if they do not keep up with their mortgage payments.

Occupiers of OMSE property who wish to rent out a room to a lodger will first need to get written permission from the housing association.

It is a condition of the OMSE scheme that an occupier occupies the property as their main home. Therefore, occupiers will not be able to sublet the whole of the property unless it is for a limited period of time and they have received written confirmation from the housing association. The association is entitled to withhold consent.

There may be cost implications if an applicant later wants to remortgage their home as the owner will also be responsible for the administrative costs of the housing association or council and the costs of the Scottish government’s solicitors.

If the owner of an OMSE property decides to sell, the proceeds will be split between the owner and the Scottish government according to the percentage of the property that they each own.