New Supply Shared Equity with Sanctuary is a great option for anyone looking to get a foot on the property ladder, even if you’re not able to afford to buy your own property outright.
Through the NSSE scheme, buyers purchase between 60% and 80% of their new build home’s value, with the Scottish Government retaining the remaining 20% to 40% stake in the form of an interest-free loan. Buyers pay no rent on top of this and own their home outright.
The qualifying criteria for NSSE are set by the Scottish Government and is open to first-time buyers and these priority access groups.
TOP TEN NSSE FAQS
1. How does NSSE work?
Simply put, you own a bit and the Scottish Government owns the remainder.
As a Registered Social Landlord, Sanctuary receives Scottish Government grant funding to build new properties for sale on a Shared Equity basis. You'll purchase a majority share – usually between 60% and 80% of the home's cost – and the Scottish Government will hold the remaining share under a 'shared equity agreement', which it will enter into with you.
2. How much of a stake can I buy?
Your stake will normally be between 60% – 80%. The maximum stake you can start with is 80%. You must purchase the maximum share you can afford. In the vast majority of circumstances, you will be able to purchase additional equity gradually up to 100%. This is known as tranching up. In some circumstances, where a Golden Share arrangement is in place, the Scottish Government will keep at least a 20% share of your home. This means you cannot purchase any more than 80% of the property for the time span that you are the owner unless the Scottish Government agrees to it. Our After Sales team will advise on tranching up enquiries.
3. When do I have to pay the Scottish Government back?
You don’t have to worry about paying the Scottish Government back until you’re looking to sell the property. Once the property is sold, the Scottish Government’s equity will become repayable. In most circumstances, you will also have the opportunity to tranche up meaning you could eventually own 100% of your home outright.
4. Do I have to pay rent on the Scottish Government’s share?
No. You will own your home and will not pay rent on the remaining share.
5. What are my responsibilities?
As you will own your so home this means you'll be responsible for:
- Paying your mortgage
- Factors costs
- Home contents insurance
- Building insurance
- Repairs and maintenance
- Council tax and all utility bills
- Fixtures, fittings and furniture
6. Can I undertake home improvements?
Yes. Whether it be changing kitchen units or installing a new bathroom, you are permitted to make home improvements without notifying us provided that the improvements would not require planning permission or a building warrant. Major improvements are unlikely to be permitted as there is an expectation that NSSE owners would purchase all or some of the remaining Scottish Government equity share before any funds are spent on major home improvements. Our After Sales team is on hand to assist with any home improvement enquiries.
7. How do I find out if I am eligible?
New Supply Shared Equity is designed for people on low incomes including first time buyers and priority groups, so we have to assess whether you qualify. The amount you contribute to your share of the property’s cost must be the maximum mortgage you can afford plus any other personal contributions. More information on the eligibility criteria is available at the Scottish Government website.
8. What kind of home can I buy?
You will be able to buy a home that is two ‘bed spaces’ more than the number of people in your household, e.g. a couple could buy a house with two double bedrooms, or a double bedroom and two single bedrooms. Your shared equity home must be your sole residence. You will not be allowed to sublet or lease your property to a third party. You are responsible for your home’s running costs, which should be taken into consideration when assessing if you can afford to purchase the property.
9. What happens when I want to sell my home?
Our After Sales team will advise with enquiries about the process for selling your NSSE home. In most cases, you may market your property for sale on the open market at any time, once you have obtained a home report. Provided that any offer you receive is at least 95% of the market value as reported in the home report, the sale would proceed as normal and the Scottish Government would be due repayment at the current percentage share of the final selling price held by Scottish Ministers, whether the value of the property has increased or decreased. Where the best offer for your property is less than 95% of the market value you would be required to obtain permission from Scottish Ministers before you accept the offer.
10. Where can I find out more about Sanctuary’s NSSE properties?
All our current NSSE schemes are advertised on our website https://www.sanctuary-homes.co.uk/developments. For more information, please contact our Sales team via the contact details on the relevant page.
11. I am an existing NSSE buyer and have more questions.
If you’ve already purchased one of our New Supply Shared Equity (NSSE) properties and you have an enquiry about tranching up, re-mortgaging, changes to ownership or selling your home, our NSSE After Sales team are on hand to talk you through the process of any changes you wish to make. Please contact us on: nsse.aftersales@sanctuary-housing.co.uk.