beta

You're viewing our new website - find out more

Publication - Guidance

Open Market Shared Equity (OMSE) administrative procedures: 2017

Published: 25 Oct 2017
Part of:
Housing
ISBN:
9781788513555

Updated guidance for administering agents on the Open Market Shared Equity (OMSE) scheme's administrative procedures.

166 page PDF

1.4MB

166 page PDF

1.4MB

Contents
Open Market Shared Equity (OMSE) administrative procedures: 2017
Annexe J: Financial reconciliation - equity stake increases

166 page PDF

1.4MB

Annexe J: Financial reconciliation - equity stake increases

This example shows what would happen if an owner decides to increase the equity stake in their property from 65 per cent to 85 per cent and then from 85 per cent to 95 per cent and then from 95 per cent to 100 per cent. There is no golden share over the property.

£
Open market valuation (1 year after the owner has taken entry of the property) 130,000
Owner's equity stake (65 per cent of £130,000) 84,500
The Scottish Ministers' equity stake (35 per cent of £130,000) 45,500
Owner then increases their equity stake to 85 per cent:
Owner's new equity stake (85 per cent of £130,000) 110,500
Owner's receipt to the Scottish Ministers (£110,500 - £84,500) 26,000
The Scottish Ministers' equity stake decreases to 15 per cent:
The Scottish Ministers' new equity stake (15 per cent of £130,000) 19,500
Administering Agent pays the receipt to the Scottish Ministers: 26,000
Open market valuation (3 years after the initial purchase) 140,000
Owner's equity stake (85 per cent of £140,000) 119,000
The Scottish Ministers' equity stake (15 per cent of £140,000) 21,000
Owner then increases their equity stake to 95 per cent:
Owner's new equity stake (95 per cent of £140,000) 133,000
Owner's receipt to the Scottish Ministers (£140,000 - £119,000) 21,000
The Scottish Ministers' equity stake decreases to 5 per cent:
The Scottish Ministers' new equity stake (5 per cent of £140,00) 7,000
Administering Agent pays the receipt to the Scottish Ministers: 21,000
Open market valuation (4 years after the initial purchase) 142,000
Owner's equity stake (95 per cent of £142,000) 134,900
The Scottish Ministers' equity stake (5 per cent of £142,000) 7,100
Owner then increases their equity stake to 100 per cent:
Owner's new equity stake (100 per cent of £142,000) 142,000
Owner's receipt to the Scottish Ministers (£142,000 - £134,900) 7,100
Administering Agent pays the receipt to the Scottish Ministers: 7,100

Contact