If you are on a low income or are a first time buyer, then read on as shared equity may be just what you need to own a home at ParcLife.
LIFT aims to help people on low incomes who wish to own their home but who cannot afford to pay the full price for a house. It is part of the range of assistance from the Scottish Government. LIFT stands for Low-cost Initiative for First-Time Buyers.
To help you buy at Parclife, The Scottish Government gives grants to Link Homes, a registered social landlord, to help them fund part of the purchase of your chosen property.
You will pay for the majority share in the property – normally between 60 and 80 per cent of the price – and Link Homes will use the grant to pay for the rest.
For example: If you can afford a 60 per cent share of a property at ParcLife, Link Homes will pay for the remaining 40 per cent. You will own the property outright and will have a 60 per cent stake in its value, whatever changes there are to the property’s value over time.
There are limits on the price of the property - 1 bed apartments can be no more than £110,000 and for 2 beds the limit is £120,000. ParcLife has properties that qualify.
Who is eligible?
LIFT mainly aims to help first-time buyers, however it can help others too. For example, it may be able to help you if you are looking for a new home after a significant change in your household circumstances, or if you have a disability and own a house which doesn’t suit your needs.
The property that you buy must be your only home. As LIFT is aimed at low income households, you will be assessed by Link Homes to see whether or not you qualify. To allow this to happen, a form of ‘means testing’ will be carried out.
The amount that you contribute must be the maximum mortgage that you are able to obtain plus any personal contribution that you are able to make. The overall amount must be enough to pay for your stake and cover all the costs of buying a home, such as survey and legal costs.
There is lots more information on the Link Homes website and we'd be happy to help too.