MARYHILL LOCKS PHASE 2 NEW SUPPLY SHARED EQUITY INFORMATION BOOKLET What is Shared Equity ? Shared Equity is a new Scottish Government initiative mainly aimed at making home ownership more affordable for first time buyers. Purchasers will hold full title of their property but at a reduced price. The balance due to the reduction in price is made up of funding from the Scottish Government. When the property is sold on, the receipts are split between the owner and the Scottish Government. Points to Remember: • Maximum equity share you can buy in 80% of the property value. • Mainly aimed at first time buyers but others who have difficulties with their current housing circumstances may also apply, although this would have to be agreed with the Scottish Government. • You cannot choose the level of share, this is determined by the maximum mortgage you can afford and level of savings contributed. • You must contribute 90% of any savings you have over £5,000. • You will have full title to the property. • You must pay for your share, usually by obtaining a mortgage. • You will be liable to pay your legal costs, stamp duty, survey etc. • You will be responsible for all repairs, building and contents insurance and factoring costs. • You must occupy the property as your principle home. • You are expected to buy between 60%-80% equity share of the value of the property. • You can increase your equity share after two years. • You can buy a property which is up to 2 bed spaces larger than your current need. Marketing Maryhill Housing Association has agreed with its funders to market shared equity properties to their local tenants and applicants on the waiting list. After a period of 6 weeks and if there are still properties available then the following groups will be targeted. • People living in social rented property within Maryhill and Ruchill areas • Other local residents living in private rented with a relative. • Owner occupiers living in areas scheduled for demolition. • Local owners whose properties no longer meet their needs. • Local residents whose household circumstances have changed significantly and are looking for new home. • People in the Armed Forces or Veterans who have expressed an interest in moving to our catchment area. • Other neighbouring housing association and Local housing organisations. • Other in the Wider area. • Advertising with an estate agent. Making Application There are only 19 properties available in this development. To give a fair and equal chance to everyone we will assess each application we receive on a first come, first serve basis. • Applications should be submitted to Maryhill Housing Association offices, 45 Garrioch Road, Glasgow G20 8RG. • Applications will be date and time stamped and placed in order. • We will assess on a first come first serve basis against the government criteria. • We will carry out a financial assessment. • We will try to place applicants in their preferred plot, if not, we will place in a similar size and type. We strongly advise you to appoint your lawyer and seek advice and assistance of an independent financial adviser who will assist in working our your level of mortgage, seek three mortgage quotes and assist us in completing our financial assessment. Financial Assessment Once you have completed all sections of the application form and returned to Maryhill Housing Association we will carry out the following assessment. • Verify your household income • Assess whether you can afford all the costs of ownership of at least 60% of the value of the flat you are interested in. The financial adviser may provide information on this. • Assess whether you could afford to buy a similar property in the area without any assistance though the shared equity scheme. • Calculate the share of the equity (60%-80%) you can reasonably afford to buy. 90% of any household savings above £5000 will be treated as a contribution towards the share you can buy. • Inform you of the outcome of your application • To secure your plot we will request a £200 deposit. This amount will be deducted from your purchase price. • Instruct our lawyer to start the process of concluding the sale.