Page 23 - February 2023

EXPERT ADVICE

What happens if you sell the property? How can you apply for the LIFT scheme?
The Scottish Government receives a share The application process is different for both
equivalent to the original contribution, i.e., if it schemes, and all of the information can be
paid 25% of the purchase price, it would receive found on the Scottish Government website.
25% of the sale price, even if that figure is
greater. In most cases, you can increase your Mortgage advisers can discuss your application
share during your ownership, with the option to with you, and help you find the most appropriate
own your home outright, meaning the Scottish mortgage.
Government will no longer have a share.
For the OMSE scheme, successful applicants
A maximum threshold price applies to buyers
using the OMSE scheme, with different will receive a ‘passport letter’ with their
thresholds across Scotland which have threshold price.
recently been increased to higher levels. The
other change is that all buyers can now pay You’ll need to check that your mortgage lender
over the property valuation from their own offers mortgages for LIFT buyers, but your
funds as long as the price paid is within the broker can advise on this.
threshold for the property size and area.

Everything you need to know about

the LIFT scheme

Paul Demarco, Independent Mortgage Adviser with ESPC Mortgages,
gives an overview of the LIFT scheme for first-time buyers.

re you looking to purchase your first Both schemes are open to first-time buyers and
property this year? LIFT or the Low- certain priority groups across Scotland, with low
A cost Initiative for First Time Buyers to medium incomes.
could help you out. The scheme is a Scottish
Government shared equity arrangement, Buyers purchase the bigger share of the
which has helped more than 12,000 people to property (usually between 60-90%), and the
buy a home. Scottish Government contributes the remaining
cost. For example, if you pay 75%, the Scottish
How does it work? Government will pay the remaining 25% and
There are two LIFT schemes: Open Market hold this under a shared equity agreement with
Shared Equity (OMSE), and New Supply Shared you. You will need a minimum 5% deposit, to
Equity (NSSE). add to the mortgage and Government share. ESPC Mortgages offer expert independent mortgage advice in Edinburgh. Get in touch with the team on 0131 253 2920 or
fsenquiries@espc.com.
The OMSE scheme is for people who cannot You will have complete ownership and have the
afford the full price of a home in the open same responsibilities as any other homeowner, The information contained in this article is provided in good faith. Whilst every care has been taken in the preparation of the information,
no responsibility is accepted for any errors which, despite our precautions, it may contain.
market. The NSSE scheme allows buyers to including paying the mortgage, council tax and
purchase a new-build home from a housing insurances, as well as any costs associated with The initial consultation with an adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are
association or local council. the purchase. usually £350 (£295 for first time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A
MORTGAGE OR OTHER LOANS SECURED AGAINST IT.
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