What responsibilities does a shared equity owner have?
When you buy through the New Supply Shared Equity scheme you own the property outright - you will have full title to the property.
Like other home owners you will be responsible for all maintenance, insurance and repair costs, as well as making your mortgage repayments and paying tax to your local authority. You are responsible for keeping your property in a good state of repair. If the property has common and shared areas (flats for example) you will be responsible for paying any common maintenance or service charges. In so far as practical, the registered social landlord administering your New Supply Shared Equity Scheme application should provide you information on common maintenance and or service charges, and the Home Buyers Warranty at an early stage.
You will need to take these costs into account when assessing whether you can afford to buy a property. You should seek independent financial and legal advice on the responsibilities that come with being a home owner both generally and in relation to any particular property you select.
You are only allowed to let or sub-let your property with the Scottish Government's prior written consent. If you are given permission to let your property you will only be able to do this for a limited period of time. This is because all shared equity owners are expected to reside in their home as their sole residence. You must therefore receive written consent agreeing the start and finish dates for the period of letting. If the Scottish Government does not provide written consent you must not let your home.
The law imposes obligations on private landlords to register with their local authority to ensure that they are a "fit and proper person" to let property and failure to comply is an offence. Any consent to sub-let a property will be conditional on you complying with these provisions. Further information on the registration process is located on the Scottish Government website at http://www.scotland.gov.uk/Topics/Built-Environment/Housing/privaterent/landlords/registration).
You must ensure that any lease provided to a tenant is a properly constituted short-assured tenancy that contains certain rights to terminate.
Further information on your obligations as a shared equity owner will be available from the registered social landlord developing the New Supply Shared Equity properties and also from your own legal adviser.