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Publication - Guidance

Open Market Shared Equity Scheme (OMSE) Administrative Procedures

Published: 13 May 2016
Part of:
Housing
ISBN:
9781786522207

Provides detailed operational guidance for agents who administer the Open Market Shared Equity Scheme on behalf of the Scottish Government.

162 page PDF

1.5MB

162 page PDF

1.5MB

Contents
Open Market Shared Equity Scheme (OMSE) Administrative Procedures
Annexe B: Application form

162 page PDF

1.5MB

Annexe B: Application form

(to be produced on the Administering Agent's (or subsidiary's) letter headed notepaper)

Application form

Application form

Application form

Application form

Application form

Application form

Application form

Application form

Application form

Application form

Application form

Application form

Application form

Application form

Application form

Please read the guidance notes for applicants before completing the application form.

Application form for the Open Market Shared Equity Scheme

Notes for applicants

Please complete the application form using BLOCK CAPITALS.

Part one - About the application

Please tell us where you would like to look for a property.

Please also complete all your personal details and include a telephone number which would be useful if we need to clarify any details.

Part two - Enclosures

These are additional documents which must be provided where necessary in order to consider your application.

Enclosure one - Evidence of your accommodation status is required. For example, if you are a tenant, a copy of your tenancy agreement should be provided. You must provide written evidence of the accommodation status of all applicants regardless of whether they currently live in the same accommodation or live separately.

Enclosure two - If you are a person with particular needs and you currently own your home but need to move, you must provide evidence of why this is the case. For example, if you have particular housing needs arising from an impairment or disability and need to move you must provide written evidence from a professional (such as a doctor or occupational therapist) stating why your current home is unsuitable.

Enclosure three - You are normally required to provide one Decision in Principle a one Key Facts Illustration from a lender(s). Where this is not possible, there should be clear justification of the reasons. These must be from a qualifying lender such as a bank, building society, credit union or insurance company. Other lenders may be acceptable but you will need to check first with us whether the lender can provide a mortgage for the Open Market Shared Equity Scheme.

You are required to provide one Decision in Principle and one Key Facts Illustration. Searches can leave 'footprints' on your credit history which may affect your ability to obtain credit. You should therefore confirm with the lender whether the Decision in Principle and Key Facts Illustration will include any form of credit search. If either of them does require a credit search the lender should explain to you any potential consequences. The lender should also obtain your consent before carrying out the search.

Part three - About you

This part tells us whether you are a first-time buyer and gives us information about your current employment status. It also asks you to confirm:

  • whether your application is in respect of your primary and only residence;
  • whether you have left the Armed Forces in the past two years; and

This section should be completed for all applicants.

Part four - Details of those who will be living with you

This is to help us assess your house size requirements. Please give details of all those who will be living with you.

Part five - Current accommodation

Please give us details of your current living arrangements.

This section should be completed for all applicants. You must therefore provide written evidence of the accommodation status of all applicants regardless of whether they currently live in the same accommodation or live separately.

Please give us the details of your landlord, if applicable, and any housing waiting lists that you are currently on.

Please explain why you want to move from your current accommodation.

Please provide Enclosure one - Evidence of accommodation status.

If applicable, please also provide Enclosure two - Evidence of why you have to move from the house that you own.

Part six - People with particular housing needs

We use the term 'people with particular housing needs' to describe people who have a need for a more expensive, larger or more specialised house. This need could arise as a result of a member of the household having a disability or impairment.

This section relates to information about any particular housing need that you or a member of your household has. Please give as much detail as possible about any special housing requirements that you have in relation to house type, size, design and location.

If you currently own your home but require a property which is more expensive as a result of your particular housing needs we will need to know the specific reasons for this. We need written support from a professional (such as a doctor or occupational therapist) stating why your current house is no longer suitable for your needs (Enclosure two).

Part seven - Income assessment

We need as much information as possible relating to your financial situation. We cannot assess your application unless you fully complete this section.

You will have to state all sources of finance. Your funds will be considered to be the total of:

  • gross earnings, per single person or couple, as appropriate;
  • any other income, comprising sickness benefit, unemployment benefit, bank interest, superannuation or pension from previous employment, working families tax credit, widow's pension and shareholder's profits; and
  • personal contributions.

Personal contributions may comprise savings, gifts or any other financial contributions you can make. The definition of personal savings that we use includes: cash; premium bonds; stocks and shares; unit trusts; bank or building society accounts and fixed-term investments; the surrender value of any endowment policies; property; redundancy payments; and pension lump sum payments.

We will include personal contributions held by all prospective applicants.

You may retain £5,000 of any personal contributions held. Above this amount, 90 per cent of the balance will be treated as a contribution towards the purchase of a property.

If you already own a home you may still apply. However, any capital gain on your last owned property will be included as a personal contribution. You must tell us about the profit, or anticipated profit, from the sale of the property. The information must be validated by a solicitor if the application proceeds to the next stage.

You must purchase the maximum level of equity you can afford, taking into account other financial commitments and the associated costs of home ownership.

Please include Enclosure Three - Evidence of the maximum mortgage that you are able to raise.

Part eight - Appointing a solicitor

You should appoint a solicitor to act on your behalf to complete the work involved in buying a home as soon as possible if you have not already done so. You should ask them to notify us directly so that we can put them in contact with Scottish Government Solicitors.

Your mortgage provider or independent financial adviser may be able to recommend certain legal firms having regard to matters such as cost, experience and quality of service.

You should ensure that your solicitor advises you on the implications of the Open Market Shared Equity Scheme and the terms of all documentation and that you are satisfied with the same before agreeing to enter into any legal commitments.

The shared equity arrangements will include the granting of a mortgage (or 'standard security' as it is known in Scotland) to secure the rights of the Scottish Government. You should check that this mortgage will meet your needs if you want to move or sell your home, or if you want your family to inherit it.

If you have not done so already, we recommend you contact an independent financial advisor to discuss buying a home.

Part nine - Use of information

This part sets out how information provided by you may be used and shared with others and advises you of your rights to obtain a copy of the information held and to request correction.

Part ten - Signing the application form

Please ensure that all applicants sign the application form. Each applicant must sign the form twice - here and in the next section.

Part eleven - Allowing us to request and share information

The signatures in this section allow us to request information from the lenders that have given you the Decision in Principle and Key Facts Illustration


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