After sale shared equity procedures: guidance 2019

Annex 6 – Expiry of 19 years/Application of 20 year security rule

Please see section 9 of the procedures for an explanation of the position in relation to the potential application of the "20 year security rule", following the coming into effect of the Redemption of Heritable Securities (Excluded Securities) (Scotland) Order 2018 on 15 February 2019.

Standard securities granted in relation to some shared equity schemes will still be subject to the 20 year rule, in which case affected shared equity owners may have to grant a new standard security in year 19 of their shared equity arrangements, in order to avoid triggering a payment event.

The First Home Fund will be affected by the 20 year rule, until Scottish Government make an Order exempting standard securities granted under the First Home Fund from the effect of the 20 year rule.

No particular template is being specified for use when making contact with and dealing with affected shared equity owners.