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Publication - Guidance

After-sale shared equity procedures: guidance

Published: 13 Oct 2017
Part of:
Housing
ISBN:
9781788513401

Guidance to cover after-sale procedures in relation to Scottish Government’s various shared equity schemes.

105 page PDF

681.5kB

105 page PDF

681.5kB

Contents
After-sale shared equity procedures: guidance
Annex 9 - Application for consent to Home Improvements -€“ NSSE and OMSE (but not HtB(S))

105 page PDF

681.5kB

Annex 9 - Application for consent to Home Improvements -€“ NSSE and OMSE (but not HtB(S))

Annex 9(A) - Letter/Email to OMSE or NSSE owner who is proposing to carry out home improvements (See Guidance -€“ Section 11, Corresponding with Owners and Section 14, Alterations to the Property)

Note to RSL -€“ this procedure is not to be used in the case of HtB(S) properties -€“ see Section 14 of Guidance for details

Dear

[Address of property] (the "Property")

[Details of Primary Lender] (the "Primary Lender")

Proposal to undertake home improvements to the Property

Thank you for your enquiry seeking the consent of Scottish Ministers to you carrying out home improvements to the Property.

You should be aware that, as a condition of the second ranking standard security which you have granted over the title to the Property in favour of Scottish Ministers, the prior written consent of Scottish Ministers is required if you wish to alter or add to your home. It is also very likely that the consent of the Primary Lender will be required. You should also appreciate that, if you do undertake home improvements while Scottish Ministers hold an equity share in the Property, any increase in the value of the Property which is attributable to the home improvements will taken into account if the Property is to be sold or in the event of a payment event occurring.

In order to proceed, I would be grateful if you could please complete the form overleaf and return to us. Please note that in order for us to deal with your request we will require to receive payment in advance of our reasonable administrative costs which in this case will be £[ insert] (inclusive of VAT at 20%). Payment can be made either by telephoning details of your debit/credit card to us or providing us with a cheque for that amount made payable to ( insert name of RSL) This is our administration fee and is not refundable

(If already paid by debit/card insert Thank you for your payment of £###.)

Once we have received your form and payment we will seek approval from Scottish Government's Regional Team and will advise you of their decision.

Please note that in the event of approval being received it will be subject to your solicitor confirming to us that (a) the proposed works have been approved by the Primary Lender, (b) where the works require planning permission and/or a building warrant and/or any other statutory consents or licences, you have obtained these and you will apply for and obtain a completion certificate for the works forthwith upon completion and (c) you will provide us with copies of all such permissions, warrants, certificates and licences forthwith upon request.

Shared Equity Officer

(If email insert details of address and telephone number etc)

Annex 9(B) - Application for consent to Home Improvements -€“ NSSE and OMSE

Please complete this table and return to [insert name of the RSL.] If emailed please Reply to email address of Sender.

Insert name of Shared Equity Owner and Property Address

Please complete your solicitor's name, address, contact number and email address:

Name:

Address:

Tel:

Email:

Who is your current lender?

Please specify the home improvements which you wish to carry out to the Property and the approximate cost of the proposed works.

If you have not already done so, please provide us with payment of (£ ) (inclusive of VAT at 20%) . You may do this either by contacting us at the telephone number shown in the covering letter/email with credit / debit card details or providing us with a cheque (with name and address written on the back ) made payable to us.

I/We hereby provide authority for <insert name of Administering Agent> to discuss my/our personal information with the above Representatives.

First Name:
Second Name:
Date:

Annex 9(C)- Application for consent to undertake Home Improvements -€“ email from the RSL to Scottish Government More HomesDivision

Insert name of owner(s) (the "Owner")

Insert address of property (the "Property")

I enclose copy of Application Form in respect of a proposal by the Owner to undertake home improvements to the Property.

I confirm that the Owner purchased the Property under the OMSE/ NSSE scheme.

Reply from Scottish Government More Homes Division to RSL

Insert name of owners (the "Owner")

Insert name of property (the "Property")

We have reviewed the foregoing application and would confirm that Scottish Ministers propose to accept/reject the foregoing application.

[If rejected please give reasons].

[If accepted the following should be inserted:

This approval is subject to confirmation in writing being received from the Owner's solicitor that (a) the proposed works have been approved by the Primary Lender, (b) where the works require planning permission and/or a building warrant and/or any other statutory consents or licences, the Owner has obtained these and will apply for and obtain a completion certificate for the works forthwith upon completion and (c) will provide you with copies of all such permissions, warrants, certificates and licences forthwith upon request.

Annex 9(D) -€“ Email from RSL to Owner's Solicitor re request for consent to undertake Home Improvements.

Insert name of owner(s) ("your clients")

Insert name of property (the "Property")

Proposal to undertake Home Improvements

I enclose copy of duly completed Application Form by your clients.

Either

I confirm that Scottish Government has not approved your clients' request to carry out home improvements to the Property for the following reason(s): [insert details]

OR

I confirm that Scottish Government has approved your clients' request to carry out home improvements to the Property subject to satisfactory confirmation from you that (a) the proposed works have been approved by the primary lender, (b) where the works require planning permission and/or a building warrant and/or any other statutory consents or licences, your clients have obtained these and that they will apply for and obtain a completion certificate for the works forthwith upon completion and (c) your clients will provide us with copies of all such permissions, warrants, certificates and licences forthwith upon request.

I enclose draft letter to this effect and would be grateful if you would complete the same and provide me with both a hard and scanned copy when you are in a position to do so.

Please note that until we receive this letter from you your clients are not permitted to carry out the proposed works to the Property.

Yours,

Shared Equity Officer

(If email insert details of address and telephone number etc)

Annex 9(E)

Letter from Owner's solicitor to The Scottish Ministers / RSL c/o The Scottish Ministers re home improvements -€“ Please email scanned signed copy with hard copy to follow

To (insert name of address of RSL) OR (the Scottish Ministers c/o insert name and address of the RSL) dependent on whether Agreement pre- or post- 6 April 2008.

Dear Sirs

Insert name of owners ("our clients")

Insert address of property (the "Property")

Insert name of Primary Lender (the "Primary Lender")

Proposal to carry out home improvements to the Property

We refer to your letter of (insert) in connection with our clients' proposed home improvements to the Property (the "Works") and confirm:-

(a) the Works have been approved by the Primary Lender in terms of their lending and security documentation;

(b) where the Works require planning permission and/or a building warrant and/or any other statutory consents or licences, our clients have obtained these and that they will apply for and obtain a completion certificate for the Works forthwith upon completion; and

(c) our clients will provide you with copies of all such permissions, warrants, certificates and licences forthwith upon request.

Yours faithfully

NB Please send scanned and hard copy


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