Holmes Mackillop welcomes First Homes Fund
Holmes Mackillop Solicitors has welcomed the Scottish Government’s new scheme aimed at helping thousands of first-time buyers get onto the property ladder as a valuable option for those unable to save a deposit for their first home.
The ‘First Homes Fund’ intends to provide eligible applicants with a shared equity contribution of up to £10,000 to assist with the purchase of a first home.
The scheme seeks to address one of the main challenges faced by prospective buyers, namely the difficulty in saving enough for a deposit. By reducing the amount buyers need to contribute upfront, it is anticipated that the scheme will make property ownership more attainable throughout Scotland.
Sarah Makin, trainee solicitor at Holmes Mackillop, said it is important to note that the contribution provided under the scheme is not a gift. Instead, it operates as a shared equity arrangement. This means that, although the homeowner retains ownership and title, the Scottish Government holds an equity share in the property.
“While there are no monthly repayments or interest charges, the Government’s percentage share will typically be required to be repaid when the property is sold,” she said.
“As the amount repayable reflects the Government’s equity percentage at sale rather than the initial £10,000 contribution, it should not be understood as a fixed sum and the amount repayable may increase.
“This may affect the amount of equity a homeowner ultimately realises, particularly where the property increases in value. Despite this, the scheme remains a valuable option for those unable to save a deposit for their first home.”
The scheme is expected to be open to first-time buyers purchasing either a new-build or existing property with a mortgage, with a maximum purchase price of £300,000.
The Scottish Government has indicated that the initial phase is expected to support approximately 2,000 households within the first 100 days, with a longer-term aim of assisting up to 50,000 first-time buyers over the current parliamentary term.
Applications are expected to open by the end of June, with further details on eligibility criteria and the application process due to be released ahead of the launch.
“If you are a first-time buyer considering purchasing a property with support from this scheme, please do not hesitate to contact our conveyancing team for advice,” said Makin.
ENDS
For further information please contact Sarah Makin on tel 0141 226 4942