Sanctuary’s homes in Scotland are sold through the Scottish Government’s New Supply Shared Equity (NSSE) scheme. Buyers purchase 60% – 80% of the home’s value, with the Scottish Government retaining the remaining 20% – 40% stake in the form of an interest-free loan. Under the NSSE scheme, buyers pay no rent and own their home outright.

The qualifying criteria for NSSE vary by development. The qualifying criteria is set by the Scottish Government or local authority.

NSSE FAQs

What is NSSE?

New Supply Shared Equity (NSSE) is part of the Scottish Government’s Low-cost Initiative for First Time Buyers (LIFT) scheme, aimed at people on low incomes who wish to own their own home. The scheme helps first-time buyers but is also open to those who experience a significant change in their circumstances or suffer a disability and their current home no longer meets their requirements. The NSSE scheme requires buyers to pay 60% – 80% of the value of the property. The Scottish Government would retain the remaining 20% – 40% stake. This Scottish Government’s stake is in the form of an interest-free loan, and no rent is applicable on the stake. However, under the scheme buyers own the whole home outright.

How does it work?

Sanctuary Scotland is a Registered Social Landlord. We receive Scottish Government grants which go towards the cost of the property you buy from ourselves. If you can afford a mortgage that meets 75% of the cost then the Scottish Government will contribute the remaining 25%. You will always own the whole home whether its future value goes up or down.

How do I find out if I am eligible?

New Supply Shared Equity is designed for people on low incomes, 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. This total must be 60% – 80% of the property’s value.

The NSSE application form asks you to state all your sources of finance including savings and any other income (e.g. salary, sickness or welfare benefits, bank interest).

How do I apply?

To apply for a property you will need to complete an NSSE application form.

Please note that as we must have your signature, the form cannot be completed online. If you are unable to download the form, please contact us and we will send an application form to you.

The application should be submitted along with proof of address, three mortgage quotes or one mortgage promise, and your solicitor's details. We must proceed with the sale on the basis of the highest of the three quotes submitted, or the amount stated on the mortgage promise.

We consider all applications that meet the qualifying criteria. The scheme is also open to those who are experiencing a significant change in circumstances, or suffer a disability and find their current property no longer meets their requirements.

How much of a stake can I take?

Your stake will normally be between 60% – 80%. The maximum stake you can start with is 80% but, in most cases, you can increase that over time to 100%.

If you purchase a Golden Share property this must remain within the NSSE scheme, therefore, you can not purchase any more than 80% of the property for the time span that you are the owner, the Scottish Government will always have a % stake interest. When Golden Share properties are sold, they must be sold under the NSSE Scheme where the new owners will have the opportunity to buy in between 60% & 80%.

What should I know about the home?

Homes in the project are a mix of sizes, designed for a range of housing needs. You will be able to buy a home that is two ‘bed spaces’ more than the number of people in your household. For example, 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 out to a third party. As the outright owner, you are responsible for all of your home’s running costs, including maintenance, insurance, repairs, service charges and – where applicable – council tax. These costs should be taken into consideration when assessing whether you can afford to purchase the property.

What happens if I want to move?

If you want to sell your Shared Equity home, we will advise you on the procedure. Please note that all valuation, marketing, and legal costs will need to be paid by you.

When you sell your home you will receive the percentage stake of the selling price. An example is below:

  • Initial home value - £100,000
  • Your stake - 60% - £60,000
  • Scottish Government’s stake - 40% - £40,000
  • Sale price - £140,000
  • You receive 60% (less your fees and costs) £84,000
  • Scottish Government receives - 40% - £56,000

What else do I need to know?

We can provide more information on your legal requirements, but we strongly advise you to take independent financial and legal advice before going ahead with your house purchase. We can also provide more detailed information about our role as Registered Social Landlords and the terms and conditions that apply.

How do I find out more?

For further information:

Block

Find the perfect home call us now on 0800 916 1444 or Contact us