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Has anyone bought a house using the lift open market scheme?

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Found 8th Sep 2012
As above just wondering if anyone has any experience of the above? , it has been announced that the scheme has re started with no deposit required.We were thinking of trying as we are in rented accommodation which costs us a fortune and is pretty run down.We got turned down on a mortgage application around two years ago , not sure if it's easier to get one doing it this way?.Any advice would be welcome, thanks!.
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I am not familiar with this scottish system. But I can give you a little advice based on professional experience of the english shared equity schemes. The only warning I would give you is that you have a seriously limited target market/audience when it comes to selling meaning it can take some time to sell. If at all possible I would recommend doing your utmost to find a property you can buy outright (with mortgage obviously), without the need for shared ownership.
If you intend to stay and are not worried about re-sell value/time it takes to sell, then these schemes are an excellent way to get on the property ladder. Though I wouldnt expect your outgoings to go down significantly as you are still paying say 50% rent albeit at a lower level than private renting.
I HTH and good luck
Original Poster
markq

I am not familiar with this scottish system. But I can give you a little … I am not familiar with this scottish system. But I can give you a little advice based on professional experience of the english shared equity schemes. The only warning I would give you is that you have a seriously limited target market/audience when it comes to selling meaning it can take some time to sell. If at all possible I would recommend doing your utmost to find a property you can buy outright (with mortgage obviously), without the need for shared ownership.If you intend to stay and are not worried about re-sell value/time it takes to sell, then these schemes are an excellent way to get on the property ladder. Though I wouldnt expect your outgoings to go down significantly as you are still paying say 50% rent albeit at a lower level than private renting.I HTH and good luck


Hi, I think if we got moved that would pretty much be us as we have finished having a family etc , so the re- sale value wouldn't be a issue anytime soon , have looked into it a bit on the Internet and I think there are definitely some pitfalls to it.Do you know if getting a shared mortgage is easier than a standard one? Just a bit worried with being refused last time , getting my hopes up about getting out of this dump! Thanks
Move into a different rented accommodation? Tell your landlord to pull his finger out and provide a decent place to live.

Renting doesn't mean substandard
Shared equity can be ok if you use the time spent there to acquire the equity that was initially shared. ie increase your interest in the property. If the market falls though it will be a liability as in order to own it all you will still need to pay the original quoted price.

My reasoning is based on English shared ownership which may be different
Original Poster
sancho1983

Move into a different rented accommodation? Tell your landlord to pull … Move into a different rented accommodation? Tell your landlord to pull his finger out and provide a decent place to live. Renting doesn't mean substandard


We have tried but unfortunately three bedroom houses here are like goldust , demand is far greater than supply , and as far as council / social landlords in this area go they are even worse regarding supply .Have attempted to get the landlord to pull his finger out but no joy , he is too busy buying 16 grand cars and new houses to care!.
@wooly, thanks for your input , I had read something along that lines , I'm not sure how much differs between Scotland and England regarding this .
Markq - that's not quite right. Shared equity wouldnt affect reselling as you still have 100% ownership. You are probably getting confused with shared ownership which is different.

Shared equity is small risk as normally you pay back a percentage on sale rather than a fixed figure and alot of schemes offer a large interest free period so it's a good way to go for a few years.

Shared ownership is tougher as you normally only own 50% and pay rent on the remainder. Then when you sell, as Markq said, you can't sell on the open market.

Just read about this scheme. It's a shared ownership scheme but describes itself as shared equity, just to confuse everyone!! Still probably better than renting to be fair, but you are better off trying to save if you can and get 5% together.
It's fine to use.

The jist of it is this ;

1. You need to be a first time buyer.
2. You need to be leaving social housing.
3. Have a relatively low income.
4. They will not consider any savings over £5000
5. You only have 12 weeks to use it once approved.
6. You will only be allocated a certain area to buy a house which you indicate. (ie Glasgow)
7. They will pay a % of the property (up to 40%) but you will still be the 100% owner.

8. The MOST IMPORTANT aspect ; It is % free, BUT you will have to pay it back after 19 years. If you require more time they will enter discussions with you about extending.

If you can get it, it's fantastic. Don't listen to anyone who says otherwise, they either don't have a clue what they're talking about or don't know enough about it.

Good luck!
drunk1

It's fine to use. The jist of it is this ;1. You need to be a first time … It's fine to use. The jist of it is this ;1. You need to be a first time buyer. 2. You need to be leaving social housing. 3. Have a relatively low income. 4. They will not consider any savings over £50005. You only have 12 weeks to use it once approved. 6. You will only be allocated a certain area to buy a house which you indicate. (ie Glasgow)7. They will pay a % of the property (up to 40%) but you will still be the 100% owner. 8. The MOST IMPORTANT aspect ; It is % free, BUT you will have to pay it back after 19 years. If you require more time they will enter discussions with you about extending. If you can get it, it's fantastic. Don't listen to anyone who says otherwise, they either don't have a clue what they're talking about or don't know enough about it. Good luck!



Post again when you sober up.
Original Poster
Thanks for all the input, we have a appointment next week with the estate agent who had it advertised so we will take it from there and see how it goes!
Hi summerof0763,
My partner and I bought our house through this scheme in Aberdeen.
Essentially they help by providing the deposit.
It is not a golden share scheme, this scheme is open market.
When you decide to sell they get their percentage back based on the new valuation.
They accept that they could loose as easy as they are likely to profit but they do not influence the sale apart from getting the market value at that time.
When we did it 3yrs ago it was fairly limiting.
Based on your needs they decide what size property you could buy, and the price range it must be within.
We were limited to a 2 bed for up to £125000 (not great here).
After they assessed us they told us how much they were willing to contribute to this price.
However we still had to be able to pay all legal fees and that time any survey fees.
I then went to the banks with the figures and got mortgage quotes without credit searches (can't remember if i needed this for the assessment or just to know if we could afford it) had to highlight to banks that it was this scheme but not a golden share scheme.
BOS were the best for us but Abbey were close.
Many were not interested in this type of mortgage.

While hoping to get an ok flat we got lucky and found a nice house.
When you go to the meeting with them ask them any questions and they will clear things up for you.

Vinny
Drunk1 is absolutely spot on with all the information he gave. Im in the middle of the lift open marketvshared equity scheme now and its a fantastic way of getting you onto the property ladder. I got a mortgage promise from hbos for. An amount which meant i could buy a home upto the value of £120000. They own 40% but you can buy a bigger share at any time. Its not a loan but a grant so no interest or anything. So i suggest posters who dont understand it do their homework before tearing into someone else, who is in fact absolutely right.
I am thinking about entering tgis scheme can anyone give me advice on what i need to do and what kinda things they ask xx
@weeedinlass

We are looking to apply for the open market lift scheme- but do you know what kind of deposit lenders are looking for? Ive read a few different things and it seems lenders want 5% deposit, but is that of the share price or the house price!? Also how long has the whole process roughly taken? Thanks, any info would be fab!
You need to find the right mortgage for the value you are entitled to. He we were looking at 2 bed homes restricted to no more than £125000 value. So we looked at the different mortgages available based on this price. Then visited the banks asking if they participated in the scheme. The LIFT scheme helped with nearly all of the deposit but you have to cover solicitor fees and some of the deposit as your share. So when the housing association tell you if you qualify they will also say what you might get and make you aware of your costs etc. So you know exactly what you are getting into.
Thanks for that. Best thing then is to get myself to firstmortgage and see what they recommend! Do you know roughly the timescale this all takes- eg, how long the passport letter takes to come?
I didn't need a passport letter. Just proof of ID and address.
We went to the association and applied. Within 6 weeks we heard back. That letter told us what we qualified for and how we had 12 wks to find a property matching our LIFT level. This is when I checked what banks participated and found out based on the LIFT level if we could afford a mortgage. I asked them not do a full mortgage promise cause I didn't want them checking my credit file more than once. So I was insisting they didn't do a credit check. My idea was to find out the mortgage deals and use it to calculate what we might need to put towards the deposit and the monthly payments before we went too far. If you qualify for the scheme you will need a solicitor and pay these costs, so shop around.
Does anyone know what size of bedroom would constitute as one under this scheme? Have been told I can apply for max a 2bed or a 3bed as long as the size of the 3rd bedroom is small enough (ie a boxroom) but i'm not sure what size this means??

Any info would be a great help!!
Well often you'll find on a Sale advert that one room is described as a Boxroom and this is what they'll accept, I think typically you can fit a single bed in the room with very little space for anything else. I bought a house on the scheme with one. And as I said the extra room was described as a boxroom, it is fairly small and as I said a single bed would leave very little space, but as my dad said when he seen it 'You'd fit a bunk bed in there fine'
Just submitted application today, been told we will 99% get a passport letter end of March. Was wondering if we find a house in our criteria, can the mortgage lenders still turn us down. Due second baby in May so fingers crossed everything done before this
Thanks
Often your mortgage is subject to them being happy with the house. Before the Home Reports an offer on a house was subject to the Survey ie. The purchaser agrees to buy if the survey on the house is OK. Also the lender used to review the survey also. They want to ensure the house value is accurate and there's no obvious issues.
Also all lending is subject to your credit ratings. So avoid taking out any other credit until you get the mortgage and ensure your credit history is clean and correct.
Edited by: "vinnyabdn" 2nd Feb 2015
Hi vinnyabdn,
I seen you have went through this scheme, got my passport letter today, and wondering if you would recommend it? Thanks
I definitely recommend this scheme. A great boost to get onto the property ladder. As you may be experiencing, we were paying more in rent than the average mortgage payment but we had no hope of getting a deposit together. This scheme essentially helps you put the deposit on a property and pay towards your own home.
Hi there quick question does anyone know roughly how long after finding the right house and appointing solicitor etc offer accepted does it take to get completion date and entry dates agreed on the lift scheme scotland.Thanks for any help given
If you are accepted on the scheme you are told the value of the property you are allowed to buy. Up to £125000 for example. You can now look for your property, my experience is the scheme for the open market which means any property for sale on the open market. To make an offer etc you need a solicitor, before you make an offer you should get the association you are dealing with to approve it as qualifying. A quick phone call will do.
If they are happy you instruct your solicitor to make the offer. It could get accepted or rejected within a day or two or you could be kept waiting for a closing date.
When you get an offer accepted you can negotiate your move in date, this can depend on how quick the seller can move if they are still living there. But also the paperwork etc your solicitors need to complete and file etc can take weeks.
So there's no simple answer, it depends on a lot of variables.
Hi, I wondered if anyone can tell me a bit more about the scheme. I know you can apply now but the applications wont go through until April. My problem is it asks you to send in a mortgage in principle but how long do those last? I know the likes of Skipton only last 30 days so if I do that know I would end up having to do another one in April again which might not be good for my credit rating would it? The house we want is the one we live in and rent just now so it would be a very quick sale but even still would it not make more sense to be accepted ont he scheme first and later do a mortgage in principle?
It might be worth talking to the association you want to apply with. When I applied I didn't need a mortgage in principle, but I needed to know what we could afford so I went to a few lenders and asked for quotes and specified they were not to use a credit search until I wanted a mortgage promise.
So check with the association.
Banned
must be posh to have a lift
It would be through LINK and it says on their website you must send an agreement in principle in with their application form. I phones and asked and they confirmed this. Seems mad to me as some in principle offers last as little as 30 days so how can you send in an application now that wont be processed until April as the offer will have epired meaning you would need to get another done which isn't good for your credit file. Also if you take the risk and wait until April you could miss out if too many people subscribe before then. Even if you do apply in April it could take weeks meaning you still end up having to get another search done. I also wondered if anyone knows the list of lenders who take part in LIFT? I can't seem to find anything anywhere about that. Thanks
Also, is it normally a 5% deposit of your share you have to come up with? thanks alot
You can apply now and the application will go through, we applied in January and got told we wouldnt get passport letter untill end of March but got it 2 weeks ago.

We need 5% of our share for deposit but I'm sure for skipton you don't need a deposit. Would double check though
Also we done nat west and Halifax
You can apply now and the application will go through, we applied in January and got told we wouldnt get passport letter untill end of March but got it 2 weeks ago.

We need 5% of our share for deposit but I'm sure for skipton you don't need a deposit. Would double check though
You can apply now and the application will go through, we applied in January and got told we wouldnt get passport letter untill end of March but got it 2 weeks ago.

We need 5% of our share for deposit but I'm sure for skipton you don't need a deposit. Would double check though
Hi my application was sent to lift scheme on 2nd of feb and my mortgage adviser told me to expect my passport email last week, however still no email. Can anyone tell me how long it took for them to receive their's? When i phone them they just say to expect it before 1st of April but i'm impatient!

Thanks
Ah ok thanks. Is the passport letter from LIFT to say you can go ahead and put an offer in on a place? Also can I ask how long your decision in principle will last through natwest and halifax? when I looked to mortgage in principle applications it asks how much the house is worth and how much you want to take out a loan for, until you hear from LIFT how would you know much you want? eg the house is worth 120k and I need to get a loan for at least 60% of that to get on to the LIFT scheme would I just put 60% as the amount I want to borrow? Obv we should really go to a broker but the ones i've spoken to on the phone are not really any more clued up on this as I am to be honest!
I sent my application on January 30th and got passport letter through email on February 12th so not long at all but suppose it could be different for different places, we applied for Perth and Kinross.

Yes the passport letter said I have until 8th May to buy a house. Also can't help much with the application as our mortgage advisor done it all for us.
thanks very much for the info, it says on LINKs website you can apply now but wont hear until April. Good luck with buying your new home, do you have one in mind already?
Thanks! Good luck to you too.
Not got any in mind, viewed a couple but not gonna rush into it. If we don't find somewhere will just apply again I think. It's stressful haha
Re the ^^ above about percentages, the information about the scheme you have read should specify (according to the size of home you are eligible for) what percentage the scheme will contribute.
For me, we were eligible for a 2 bed house up to £125000 at the time and we knew the max the scheme would contribute was up to 25% so we were looking at 75% mortgages. We had to afford a small percentage and the solicitor fees. My experience was 6yrs ago so may be different.
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