If you bought your first home with help from the Scottish Government, perhaps through the First Home Fund, a LIFT shared equity scheme or Help to Buy (Scotland), that support probably made the difference between renting and owning. When the time comes to move on, it is natural to wonder what happens to that help and whether you need to pay it back before you can sell.
The short answer is that you will need to repay it, but not before you sell, and usually not from your own savings. These schemes are shared equity: the Scottish Government owns a percentage share of your home, protected by a standard security. When you sell, that same percentage of the final selling price is repaid from the sale proceeds at settlement, alongside your mortgage. You do need to tell the scheme’s administering agent before you market the property, and you need permission to accept an offer below 95% of market value. This guide explains how each scheme works, how the repayment is calculated and the steps to follow.
Key points at a glance
- It is not a grant: the Scottish Government holds a percentage share of your home, secured over the property.
- You repay a percentage, not a fixed sum: the Government receives its current percentage of the final selling price, whether values have gone up or down.
- Tell the administering agent first: for most schemes this is Link Shared Equity. For New Supply Shared Equity it is usually the housing association that handled your purchase.
- The 95% rule: you need permission from Scottish Ministers before accepting an offer below 95% of market value.
- Costs are yours: selling costs are not deducted from the Government’s share.
- You can buy more of your home: you can increase your share in steps of at least 5% at any time before you sell.
Which Scottish Government schemes does this apply to?
Several schemes have helped buyers in Scotland over the years, and some have now closed. The good news is that they all work in a similar way when you sell. The table below summarises where each one stands in October 2026.
| Scheme | Status | What it offered | Who to contact when selling |
|---|---|---|---|
| First Home Fund | Closed (ran December 2019 to March 2022) | Up to £25,000 of shared equity for first-time buyers | Link Shared Equity |
| First Homes Fund | Open since 24 June 2026 | Up to £10,000 towards a home worth up to £300,000 for first-time buyers | Link Shared Equity |
| Help to Buy (Scotland) | Closed and will not reopen | Shared equity on new build homes | Link Shared Equity |
| LIFT Open Market Shared Equity (OMSE) | Open | Help to buy on the open market, with the buyer usually funding 60% to 90% of the price | Link Shared Equity |
| LIFT New Supply Shared Equity (NSSE) | Open | Help to buy a new build home from a council or housing association | The administering agent that handled your application, normally a registered social landlord |
LIFT stands for the Low-cost Initiative for First Time Buyers, which is aimed at people on low to moderate incomes. Both OMSE and NSSE are also open to certain priority groups, such as social renters, disabled people and people aged 60 and over.
Shared equity is not the same as shared ownership, where you buy part of a home and pay rent on the rest. If that is your situation, our guide to selling a shared ownership property in Scotland is the one to read.
How does the repayment work when you sell?
Your shared equity agreement with Scottish Ministers runs indefinitely. You do not make monthly payments on the Government’s share and no interest is charged, but you must repay it when certain events happen. The most common one is selling your home.
According to the Scottish Government’s guidance for shared equity owners, updated in August 2026, you repay the current percentage share held by Scottish Ministers of the final selling price. If the Government paid for 30% when you bought, it receives 30% of what you sell for. If you have since increased your own share to 80%, it receives 20%.
Worked examples
These examples are taken from the Scottish Government guidance. The amount shown for you is before your mortgage and selling costs are paid.
| Scenario | Original price | Government share | Sale price | Government receives | Your share |
|---|---|---|---|---|---|
| Value has gone up | £160,000 | 15% | £180,000 | £27,000 | £153,000 |
| Value has gone down | £160,000 | 15% | £150,000 | £22,500 | £127,500 |
| Bought above the Home Report valuation (First Home Fund or First Homes Fund) | £110,000 paid, valued at £100,000 | 10%, based on the valuation | £200,000 | £20,000 | £180,000 |
The first two examples show that the Government shares in both gains and losses. In the second, the property fell in value by £10,000, so the owner’s 85% stake absorbed £8,500 of that fall and the Government’s share absorbed the rest.
The third example shows a rule specific to the First Home Fund and the new First Homes Fund. If you paid more than the Home Report valuation, the Government’s percentage was fixed against the valuation, not the higher price you paid.
What is a golden share?
Some homes bought through OMSE or NSSE have a “golden share” attached, which changes the selling process. If you are not sure whether this applies to your home, ask your administering agent before you put the property on the market.
What steps do you need to take before selling?
Selling a shared equity home follows the normal Scottish process, with a few extra steps. Work through them in this order.
- Find your paperwork: check which scheme you used, your current percentage share and whether any golden share applies. Your shared equity agreement and title deeds will show this.
- Contact the administering agent: tell them you plan to sell before you market the property. They will explain their process and the costs you will need to cover.
- Get a Home Report and market the property: once you have told the agent, you can sell on the open market at any time. Our guide to what a Home Report includes explains this step.
- Check offers against the 95% rule: if an offer is less than 95% of market value, you must obtain permission from Scottish Ministers before accepting it.
- Instruct your solicitor: they will obtain redemption figures from your lender and the administering agent, and repay both from the sale price on the date of entry.
- Tell your lender: as with any sale, it helps to let your mortgage lender know before you start the selling process.
Good to know: the 95% rule matters if you are considering a quick sale. Cash buyers and investors often offer below full market value, so an offer like this may need permission from Scottish Ministers before you can accept it. Speak to your administering agent early so the approval does not hold up your date of entry. Our guide on why cash buyers usually pay less explains the trade off.
Can you buy out the Government’s share before you sell?
Yes. Buying a bigger share of your own home is known as “tranching up”, and it is available under the shared equity schemes. According to the Scottish Government guidance:
- You can tranche up at any time after you move in.
- Each purchase must be at least 5% of the market value of your home.
- If your share is already above 90%, you must buy the remaining share in full and own 100%.
- You can tranche up whether your home has gone up or down in value.
- Administering agents write to owners every five years to encourage them to increase their share.
- You pay all the costs, including those of the administering agent and Scottish Ministers.
You do not have to buy out the Government before you sell. Repaying its share from the proceeds is the normal route. Tranching up mainly makes sense if you plan to stay, because it means you keep more of any future increase in value.
What about remortgaging or switching lender?
If you are not selling yet but want a new mortgage deal, you need consent from the Scottish Government to remortgage. The new loan must be a repayment mortgage from a qualifying lender, as interest only mortgages are not allowed. If you want to borrow more than you originally borrowed, a separate process applies and an independent valuation will be needed to check there is enough equity without eating into the Government’s share.
If you are thinking about selling partway through a fixed rate, check whether an early repayment charge applies. Our guides on selling a house in Scotland with a mortgage and selling before your fixed term ends cover this.
How much will you walk away with?
On the date of entry, your solicitor receives the full sale price and pays out in this order: your mortgage lender, the Scottish Government’s share, then any agreed costs. The balance is paid to you. Remember that the costs connected to the sale, such as estate agent and solicitor fees and the administering agent’s charges, are not deducted before the Government’s share is worked out. You meet them from your own share.
It is worth running the numbers before you commit, especially if you need a deposit for your next home. Our guides to the fees involved in selling a house in Scotland and how soon you get paid after selling will help. If you have other household debts to clear at the same time, read whether you need to settle utility arrears before selling.
What if your home is worth less than you paid?
Because the Government’s share is a percentage, it shares any fall in value with you. Your mortgage, however, is a fixed debt, so a fall in value can still leave you with little or nothing after the lender is repaid. If that is your situation, our guide to selling a house in negative equity explains the options. The Scottish Government advises anyone in financial difficulty to speak to their mortgage lender first, and to consider an independent financial adviser or Citizens Advice.
If you are separating and one of you wants to stay in the home, changes to the names on a shared equity agreement need to go through the administering agent. Our guide to selling your house during a divorce covers the wider picture.
What if your buyer is using the First Homes Fund?
With the First Homes Fund now open to first-time buyers for homes worth up to £300,000, you may find that your own buyer is using Scottish Government help too. That is not a problem in itself, but their purchase will still depend on a mortgage offer from a participating lender. Our guide to what happens if your buyer’s mortgage application is declined explains how to protect your sale if their finance falls through.
Can you sell a shared equity home to a cash buyer?
Yes. The Government’s share is repaid in exactly the same way whoever buys your home. The main point to check is the 95% rule, because a cash offer below 95% of market value will need permission from Scottish Ministers. Ask your administering agent early how market value will be assessed for your home.
At Sell My House Fast in Scotland, we buy homes across Scotland for cash, with no viewings and no chain, and you choose the date of entry. If you bought with shared equity, we are happy to work with your solicitor and administering agent so the Government’s share is repaid correctly at settlement. Before you decide, read what costs to expect when selling to a cash buyer and whether you can negotiate with a cash house buyer.
Frequently asked questions
Do I have to repay the First Home Fund before I put my house on the market?
No. You do not need to repay anything up front. You should tell your administering agent before you market the property, and the Government’s share is then repaid from the sale proceeds on the date of entry.
Is the amount I repay the same as the amount I received?
Not usually. You repay the Government’s percentage share of the final selling price, so if your home has gone up in value you will repay more than you received, and if it has gone down you will repay less.
Who do I contact about selling my shared equity home?
For the First Home Fund, the First Homes Fund, Open Market Shared Equity and Help to Buy (Scotland), the administering agent is Link Shared Equity. For New Supply Shared Equity, contact the agent that handled your original application, which is normally a housing association.
Do estate agent and solicitor fees reduce the Government’s share?
No. Selling costs are not deducted from the sale price before the Government’s share is calculated. You also have to pay the administering agent’s and Scottish Ministers’ costs connected to the sale.
Is the new First Homes Fund the same as the old First Home Fund?
They are separate schemes. The First Home Fund closed in 2022. The First Homes Fund opened on 24 June 2026 and offers up to £10,000 towards a home worth up to £300,000. Both are shared equity, so the Government’s share is repaid when you sell.
Can I rent out my shared equity home instead of selling?
No. The Scottish Government guidance says your home must be your sole residence and that permission to let it will not be given in any circumstances. Letting the property would breach your shared equity agreement and could lead to enforcement action, so if you need to move, selling is the usual route.
Selling a home bought with Scottish Government help?
Get a free, no obligation cash offer for your home. No viewings, no chain and a date of entry that suits you, with the Government’s share repaid by your solicitor at settlement.
