After sale shared equity procedures: guidance 2019

Annex 4: Shared Equity - Proposed Sale

Annex 4(A) Letter/Email to customer who is proposing to sell (See Guidance - Section 10, Corresponding with Owners)

Dear

Insert name of owner (the "Owner")
Property at ( ) (the "Property")
Shared Equity Sale

Thank you for your recent enquiry about selling the Property.

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 by telephoning debit/credit card details or sending / delivering a cheque ( with name and address written on the back ) 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 £###.)

I would be grateful if you could complete the enclosed disclosure mandate and Form and return to us. Please ask your solicitor to explain its terms and, if you require, assist with its completion.

Once received we will correspond separately with your solicitors in connection with the Home Report which will be required for the Property and to ensure that the Property is sold for the best price that can be reasonably obtained.

Provided that we are satisfied that the provisions in the Shared Equity Agreement have been met we/Scottish Ministers shall be due ##.##% of the sale price for the Property. When considering a proposed sale price we would expect the valuation of your property to have been prepared within the last six months.

In order to complete the sale the standard security which was granted over the Property in favour of us/Scottish Ministers will require to be discharged and closer to the time we will contact Scottish Ministers' solicitors, Harper Macleod, in order to progress this matter with your solicitors.

You should ask your solicitors for details of their fees as well as all other fees and the cost of all searches, registration dues and all other outlays. You should be aware that you have to pay these separately - these fees and outlays should not be deducted from the balance of the sale proceeds which are due to be repaid to us/Scottish Ministers.

Meanwhile, if have any queries with regard to our requirements please do not hesitate me.

A copy of the Scottish Government's Shared Equity Scheme Privacy Notice can be viewed at /publications/shared-equity-schemes-privacy-notice/

This privacy notice illustrates how your personal information will be used by the Scottish Government in relation to the operation of its shared equity schemes and explains your rights under the General Data Protection Regulation (EU) 2016/679 and how to exercise these rights.

Yours sincerely

[Note to RSL - if this is a property which was purchased under the NSSE with Developers Scheme, the Developer's equity stake will have to be repaid as well as Scottish Government's equity stake.]

Annex 4(B) Form for Proposed Sale

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

[insert name of the RSL]/ Scottish Ministers' equity share

To be inserted by the RSL

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

Name:
Address:
Tel:
Email:

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

Name:
Address:
Tel:
Email:

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

A copy of the Scottish Government's Shared Equity Scheme Privacy Notice can be viewed at /publications/shared-equity-schemes-privacy-notice/

This privacy notice illustrates how your personal information will be used by the Scottish Government in relation to the operation of its shared equity schemes and explains your rights under the General Data Protection Regulation (EU) 2016/679 and how to exercise these rights.

Annex 4(C) Disclosure Mandate

To: Insert details of solicitor, estate agent and Valuer

(insert details of property) (the "Property")

I/We (insert name(s)) currently residing at the Property authorise you to disclose to [insert name and address of RSL] all correspondence and information which you have in connection with my/our proposed sale of the Property, including without prejudice all matters relative to the marketing and valuation of the Property, Sale Particulars, other advertising details, offers to purchase and any other particulars required by [insert name of the RSL] in relation to the Property.

I/We understand that I/we shall be liable for any costs incurred by you in connection with this mandate.

Signed:
Print Name
Date:

A copy of the Scottish Government's Shared Equity Scheme Privacy Notice can be viewed at /publications/shared-equity-schemes-privacy-notice/

This privacy notice illustrates how your personal information will be used by the Scottish Government in relation to the operation of its shared equity schemes and explains your rights under the General Data Protection Regulation (EU) 2016/679 and how to exercise these rights.

Please return to [insert name, address and contact details of RSL]. Alternatively please scan and email back to RSL at: [insert email address] marked for the attention of [insert].

Annex 4(D) Proposed Sale - Email by RSL to Purchaser's solicitor regarding method of sale

Dear

Insert name(s) of the owners (the "Owner")
Insert address of property (the "Property")

I refer to the sale of the Property.

I enclose draft mandate addressed to you [ and insert name of estate agent] together with copy of the Shared Equity Agreement which sets out the basis on which the Property will be sold in order to ensure that it is for the best price that can be reasonably obtained. We will require full information on the sale in terms of the enclosed draft mandate including:

• Copies of correspondence from you [and the estate agent] in connection with the sale.
• A copy of the Home Report together with Letter of Reliance from the Valuer addressed to us/ Scottish Ministers in terms annexed. As you will note a copy of the Shared Equity Agreement will require to be sent to the Valuer. The valuation contained within your home report should be dated within the past 6 months and if it is dated earlier than that a refresh valuation will require to be carried out.
• Details of all offers made and confirmation of which one the Owner proposes to accept in order to enable the RSL and Scottish Government to be satisfied that the terms of the Shared Equity Agreement have been met.

As you will see from the Shared Equity Agreement [insert name of the RSL]/ Scottish Ministers has a percentage equity stake in the Property of ##%. and arrangements will require to be put in place with Scottish Ministers' solicitors, Harper Macleod, in order to ensure that the amount due to the RSL/Scottish Ministers [together with fees] is paid in exchange for the discharge. Please note that your legal fees and outlays associated with the sale of the Property are to be met by the Owner and should not be deducted from the balance of the proceeds due to be returned to the RSL/Scottish Ministers.

Please advise your client as to the terms of the Mandate before signing and let me know if you require any further information.

Yours sincerely

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

[Note to RSL - if this is a property which was purchased under NSSE with Developers, the Developer's interest will have to be taken into account]

Annex 4(E) Proposed Sale - Form of Letter of Reliance by Valuer (Please email sign scanned copy followed by hard copy by post)

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

Dear Sirs

Shared Equity Owner: (insert) ("the Owner")
Proposed sale of property at: (insert) (the "Property")
Home Report Reference No: (insert) together with Mortgage Valuation Report ("Home and Valuation Report")

We confirm that:-

(a) the Home and Valuation Report in respect of the Property may be relied upon by you to the extent of your interest as shared equity provider in terms of the Shared Equity Agreement a copy of which has been forwarded to us.

(b) the valuation of the Property as set out in the Home and Valuation Report would not be affected by the factors which require to be taken into account in valuing the Property in terms of the Shared Equity Agreement between you and the Owner a copy of which has been forwarded to us.

In relying upon the Home and Valuation Report you accept that you are bound by its terms and conditions including without prejudice all qualifications exclusions limitations and others save to the extent that any are inconsistent with the your ability to rely on it.

For the avoidance of doubt, in the event of any amendments to the Home and Valuation Report being made and intimated to you prior to completion of the sale of the Property, reference to the Home and Valuation Report shall mean a reference to the Home and Valuation Report as so amended.

Yours faithfully

Annex 4(F) Sale Below Valuation Form - Email from RSL to relevant Scottish Government More Homes Division

This email is to be used only when the proposed sale price is below the valuation by greater than a 5% margin (i.e. If a property is valued at around £100,000 and a shared equity owner wished to sell for £92,000, this would be an 8% margin and therefore a copy of this email would need to be submitted to the Scottish Government More Homes Division for approval)

Insert Name(s) of owners (the "Owner")
Property Address: (the "Property")

We confirm that the Property has been valued at £< >.

The Valuer has confirmed that the valuation is not affected by any of the factors that require to be taken into account in the Shared Equity Agreement.

We confirm that the Owner has received an offer of £< > to buy the Property which is the highest offer received.

The Property has been marketed for [insert period of time that the Property has been marketed for].

The Property has been marketed in the following manner (e.g. on solicitors/estate agents website/newspaper advertisements etc.)

Comparable recent sales for similar properties in the area are as follows:- [Insert details].

The Owner [has/has not] received a previous offer to buy the Property [for [insert the amount previously offered to buy the house if applicable]].

Please confirm if Scottish Ministers are prepared to allow the sale of the Property to proceed

For RSL

[Note to RSL - if this is a property which was purchased under the NSSE with Developers Scheme, the Developer's interest will have to be taken into account. In particular both Scottish Government and the Developer will require to accept the application]

Reply to RSL from Scottish Government More Homes Division

I confirm following review and discussion that Scottish Government is / is not satisfied that this matter may proceed. [and suggest that you take the following course of action - to be inserted]

Annex 4(G) Sale and discharge of security

Email from the RSL to Harper Macleod

Insert name(s) of owners: (the "Owner")
Property Address: (the "Property")
Sale price: £[ ]
[insert the name of the RSL]/Scottish Ministers' Equity share: [ ]%

The Property is to be sold by the Owner in accordance with the After Sale Shared Equity Procedures. The price payable is £[ ] and our/ Scottish Ministers' equity share will be £[ ] The proposed date of entry is [ insert].

The details of the Owner's solicitors are:- [ ].

I would be grateful if you could liaise with the Owner's solicitors in connection with the Discharge.

I enclose copy shared equity agreement and standard security in respect of the Grant / The documentation was dealt with by you and completed on [insert date].

I confirm that we have received Home Report with Letter of Reliance from the Valuer dated [ ] and valuing the Property at [ ].

[The purchase price is below the valuation by greater than a 5% margin and we have received Letter of consent from Scottish Government More Homes Division in terms of the After Sale Shared Equity Procedures.]

[Note to RSL - if this is a property which was purchased under the NSSE with Developers Scheme, the Developer's interest will have to be taken into account and the position explained to Harper Macleod]

Annex 4(H) Open Market Sale Form

Notes on completion

Please read these notes before completing the form. If in doubt, please consult your grant provider.

You should submit a completed form each time a property is sold outright on the open market.

Forms must be submitted to your grant provider within one week of the date of settlement. This allows the grant provider to raise a request for the receipt of sums due to the Scottish Ministers.

You should not enclose any remittances with the form, as the information contained therein will be used by the grant provider to raise a request for the sum that is repayable.

New Supply / Open market / Help to Buy(Scotland) / Help to Buy (Scotland) Affordable Home Ownership Shared Equity scheme - Open Market Sale Form

Please complete this form each time a property is sold outright on the open market.

Part A General information
1. Registered social landlord or subsidiary ("registered social landlord"):
2. Address of property:
3. Name and address of RSL's solicitors:
[ Don't need ]
4. Date of settlement:
Part B Financial reconciliation
Sales price obtained (please enclose a copy of the professional valuer's report on which the sales price is based)	£	(A)
Actual % equity stake taken by the Scottish Ministers (please enclose appropriate supporting documentation showing the actual % equity stake taken by the Scottish Ministers)	%	(B)
The Scottish Ministers' actual equity stake (sales price obtained (A) x % (B))	£	(C)
Capital receipt to the Scottish Ministers (C)	£
Part C Declaration
I declare that the above information, together with any supporting information, is true and complete.
Signature (Officer of registered social landlord authorised by Management Committee or other governing body)		Date
For grant provider's use:	Checked by:	Date
	Approved by:	Date