After sale shared equity procedures: guidance 2019

Annex 10(A)

Letter from Agent to Executors/Deceased Owner’s representative Please email scanned signed copy with hard copy to follow

To (insert name of address of Executor or person who has contacted the RSL to advise of the death of Owner ) Or (the name and address of the Executor’s solicitors)

Dear Sirs

Insert name of deceased owner

Insert address of property (the “Property”)

We refer to your letter of (insert) in connection with the death of [insert name of the shared equity owner]. Please accept our condolences on the recent bereavement.

In terms of the Shared Equity Agreement which applies to the Property (the “Agreement”) and the applicable Scottish Government after-sale procedures

[Pick the most appropriate of the following options :-]

[the surviving shared equity owner will continue to be subject to the obligations contained within the Agreement and, other than sending us a copy of the extract death certificate for our records, there is nothing further that you require to do.]

Or

[the surviving spouse is able to continue with the current shared equity arrangements which apply to the Property, provided they assume the obligations contained in the Agreement by signing a new Agreement within 6 months of the date on which the transfer of title to the Property to the surviving spouse takes place. If the surviving spouse does not take on the shared equity obligations by signing a new Agreement within this timescale, then the death will trigger a “payment event” (as defined in the Agreement) which means that Scottish Ministers’ equity stake in the Property becomes due and payable, and Harper Macleod LLP acting on behalf of Scottish Ministers will deal with any redemption and discharges involved.]

[The death of a sole shared equity owner acts triggers a “payment event” (as defined in the Agreement) which means that Scottish Ministers’ equity stake in the Property becomes due and payable. Harper Macleod LLP, acting for the Scottish Ministers, shall therefore liaise with you / your solicitors in relation to repayment of the shared equity loan and the discharge of the standard security over the title to the Property which secures the shared equity loan.

If you require guidance on what to do following the death of [name of shared equity owner] we would refer you to

http://www.gov.scot/Publications/2005/12/05115128/51285

Yours faithfully

Shared Equity Officer

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