SHARED EQUITY FOR SALE SCHEME (SESS)
The East Dunbartonshire Council Shared Equity for Sale Scheme (SESS) gives financial help to people who cannot afford the full purchase price of a home. The SESS allows people to buy an equity share in a property, which will usually be between 60% and 80% of the total cost of the property. The whole of the legal title, however, is held by the individual purchaser who is also responsible for repairing and maintaining the property.
The Council’s share will be secured by way of a standard security over the property granted by the purchaser in favour of the Council (this is the same way that debt is secured by a mortgage lender in Scotland). The purchaser will also be required to enter into a contract with the Council which regulates the sharing of equity as the property Title Deeds will be in the purchaser’s name only. All maintenance and insurance liabilities in relation to the property will rest with the purchaser.
If you pay 80% of the total cost of a shared equity property, the Council will hold the remaining 20% equity share. When you sell the property the Council may choose to purchase your equity share from you or allow you to sell the property on the open market. You will receive 80% of the purchase price and the Council will receive 20% of the purchase price.
Qualifying Criteria/Priority Groups
The Shared Equity for Sale Scheme aims to help residents to access home ownership if they have a maximum gross annual income as detailed below. There are variations between Bearsden/ Milngavie and Strathkelvin due to variations in house prices across the market areas.
It should also be noted that the maximum mortgage to income ratio is x3.5 times gross annual income for a single person household, and 3 times gross annual income for a non single person household.
|
Bearsden and Milngavie |
Maximum Annual Income |
|---|---|
|
Single Applicant Income |
£42,713 |
|
Household with More than One Income |
£49,834 |
|
Strathkelvin |
Maximum Annual Income |
|---|---|
|
Single Applicant Income |
£31,572 |
|
Household with More than One Income |
£36,834 |
The scheme is predominantly aimed at first time buyers living in East Dunbartonshire, particularly those in social rented accommodation. In those circumstances where a single income is being used to apply for a multi-person household with non-earning dependents (in particular for children), the upper maximum threshold will also be considered.
However, preference will also be given to the following groups subject to verification checks being carried out:
- People who are homeless or threatened with homelessness and have had a homelessness assessment carried out by the Council
- People with a disability whose current home doesn't suit their needs
- Residents living in housing that is Below Tolerable Standard
- People leaving the armed forces, or veterans
- People who have experienced a significant change in their circumstances, such as separating households or are subject to mortgage stress
Thereafter, applicants will be ranked in order of date of application and those on the Council’s housing list will be considered first. Preference is given to residents of East Dunbartonshire in the first instance.
For further information on shared equity, which is a discounted form of home ownership please see:
- Qualifying Criteria and Priority Groups
- New supply shared equity scheme [opens in a new window]
- Open market shared equity [opens in a new window]