Low Cost Housing
Not everyone will be able to buy a property without some form of assistance or support. There are several options available for those interested in purchasing property at a reduced cost. It should be noted, in all cases you will normally be required to provide a deposit and be able to obtain a mortgage. The amount of the deposit will be determined by your lender and may be up to 20% of the purchase price. Not all lenders are willing to fund these types of purchase so you will not have access to the full range of mortgage products on the market.
1. Shared Ownership
The owner purchases part of the dwelling and rents the remainder usually from an RSL. The owner can buy tranches of 25%, 50% and 75% of the property. Several RSLs have this type of property available although some may have restrictions on who qualifies:
2. New Supply Shared Equity
The owner purchases part of the dwelling with the remainder funded by the Scottish Government through an RSL. Unlike shared ownership the owner pays no rent on the retained share. Owners can normally buy in at any level from 60% to 80%, and in some exceptional instances as low as 51%. Normally a percentage, sometimes known as a golden share, will always be retained in order to ensure the property remains affordable in the future. For further information go to New Supply Shared Equity section of the Scottish Government website.
3. Open Market Shared Equity
The Open Market Shared Equity scheme allows people on low to moderate incomes to buy homes that are for sale on the open market. The scheme is open to priority group applicants which include social renters, disabled people, members of the armed forces, veterans who have left the armed forces within the past year, and widows, widowers and other partners of service personnel.
The minimum equity stake that buyers must take in a property is 60% and the maximum equity stake is 90%. Grampian Housing Association administers the scheme locally for the Scottish Government and further information can be found on their website.
4. Discounted Low Cost Sales (Low Cost Home Ownership)
These are properties sold directly by a developer at a price lower than the open market value. Applicants must meet criteria set by the Council. The percentage paid will vary for each development and will be given in the guidance notes available at the time of marketing. Future sales will be controlled to ensure these properties are retained as affordable housing whenever possible.
This type of property will be advertised in the local press and will also be listed in the Low Cost Homes for Sale section of this website.
If you are interested in properties in Aberdeenshire you can get more information on low cost homes from the Aberdeenshire Council website. You will have to meet the qualifying criteria in order to apply.
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