UK
Ireland
Scotland
London
Construction News
02/02/2010
HCA Creates Shared Ownership Lease Model
.gif)
A new model shared ownership lease aimed at creating more certainty for lenders and more clarity for purchasers of New Build HomeBuy property has been created by the Homes and Communities Agency (HCA).
The revised model lease, which will be adopted by all lenders and housing providers, will come into force from 6 April.
While the existing industry lease has been adapted over the years, changes to create the revised lease are more wide-ranging, using clearer English and incorporating amendments to 'fundamental' clauses that provide greater certainty of the rights and obligations of lenders, affordable housing providers and customers.
The changes also increase the protection offered to mortgage lenders in the shared ownership lease.
The HCA believes the lease will not only simplify and speed up the home buying process but, at a time of financial caution, will assure existing lenders of shared-ownership mortgages. As economic conditions improve the revised lease should help to encourage new lenders into the shared ownership market.
Jamie Ratcliff, Head of intermediate Markets for the HCA said: "New Build HomeBuy is an important route for helping first time buyers get a foot on the property ladder. However, we have listened to the concerns of some lenders and also acted to ensure purchasers are clear about their obligations. Our revised shared ownership lease works for both lenders and purchasers by spelling out responsibilities and liabilities more clearly."
The lease has been developed in conjunction with CLG (Communities and Local Government), the Council for Mortgage Lenders, the National Housing Federation and a number of leading mortgage lenders and providers of affordable housing.
Jackie Bennett, Head of Policy for the Council of Mortgage Lenders, added: "Shared ownership lending is more complex than mainstream mortgage products and requires a good level of communication and awareness from all parties involved.
"We welcome this much-improved lease which has been the result of close working between the CML, lenders, the HCA, the National Housing Federation and representatives from the housing sector.
"The mortgage market is likely to recover only slowly, however, as the flow of lending improves these recent changes to the shared ownership lease should help sustain this type of lending."
(CD/BMcC)
The revised model lease, which will be adopted by all lenders and housing providers, will come into force from 6 April.
While the existing industry lease has been adapted over the years, changes to create the revised lease are more wide-ranging, using clearer English and incorporating amendments to 'fundamental' clauses that provide greater certainty of the rights and obligations of lenders, affordable housing providers and customers.
The changes also increase the protection offered to mortgage lenders in the shared ownership lease.
The HCA believes the lease will not only simplify and speed up the home buying process but, at a time of financial caution, will assure existing lenders of shared-ownership mortgages. As economic conditions improve the revised lease should help to encourage new lenders into the shared ownership market.
-- Advertisement --
Jamie Ratcliff, Head of intermediate Markets for the HCA said: "New Build HomeBuy is an important route for helping first time buyers get a foot on the property ladder. However, we have listened to the concerns of some lenders and also acted to ensure purchasers are clear about their obligations. Our revised shared ownership lease works for both lenders and purchasers by spelling out responsibilities and liabilities more clearly."
The lease has been developed in conjunction with CLG (Communities and Local Government), the Council for Mortgage Lenders, the National Housing Federation and a number of leading mortgage lenders and providers of affordable housing.
Jackie Bennett, Head of Policy for the Council of Mortgage Lenders, added: "Shared ownership lending is more complex than mainstream mortgage products and requires a good level of communication and awareness from all parties involved.
"We welcome this much-improved lease which has been the result of close working between the CML, lenders, the HCA, the National Housing Federation and representatives from the housing sector.
"The mortgage market is likely to recover only slowly, however, as the flow of lending improves these recent changes to the shared ownership lease should help sustain this type of lending."
(CD/BMcC)
Latest Construction News
17/01/2025
Leeds Trinity University has officially opened its newly refurbished City Campus at 1 Trevelyan Square in Leeds.
Completed by GRAHAM Interior Fit-Out, the transformation of the central Leeds site introduces state-of-the-art facilities designed to improve learning and collaborate with industry partn
17/01/2025
Trammell Crow Company (TCC) has secured planning permission for a Grade A logistics scheme in Heywood, Greater Manchester, following a successful planning appeal.
The development will feature two state-of-the-art industrial and logistics buildings. One building will house two units measuring 4,796
17/01/2025
Poole-based developer AJC Group has celebrated a record-breaking 2024, delivering 100 affordable homes, a significant increase from the 72 units completed in the previous year.
Since 2023, AJC Group has completed and handed over 172 affordable homes across five sites.
In 2024 alone, the developer
17/01/2025
Plans for one of the most ambitious parks projects in London have taken a significant step forward, with Haringey Council securing nearly two additional acres of land around The Paddock nature reserve in Tottenham Hale.
The agreement with Thames Water marks a major milestone in the transformation o
17/01/2025
Islington Council has unveiled two draft guidance documents aimed at helping residents, businesses, and developers combat climate change by making buildings more energy efficient and fostering a greener, healthier borough.
The consultation seeks feedback on the draft Climate Action Supplementary Pl
17/01/2025
The City of Wolverhampton Council has unveiled a £98 million investment plan over the next five years to develop around 500 new homes across the city.
The proposal, part of the Housing Revenue Account (HRA) Business Plan, received Cabinet approval this week and now moves to Full Council for final
17/01/2025
Croydon Council has announced a significant milestone in the redevelopment of the Purley Pool site, with revised proposals submitted for a new leisure centre, later living housing, and the regeneration of the surrounding area.
A planning application for the site was initially submitted in 2024, pro
17/01/2025
The City of Wolverhampton Council has announced that demolition work has commenced on the New Park Village estate, marking the start of a major £40 million redevelopment project to transform outdated council housing.
Contractor DSM Demolition has begun pulling down poor-quality bungalows on Valley
17/01/2025
Hillingdon Council has acquired 12 new homes at Carpenters Court in Uxbridge.
Leader of Hillingdon Council, Cllr Ian Edwards and Cllr Steve Tuckwell, Cabinet Member for Planning, Housing and Growth, visited the site to officially mark the handover of the properties from local developer Kearns Devel
17/01/2025
Organisers of UK Construction Week (UKCW) have announced another major coup for the show's 10th anniversary year, with the news that UKCW London will be co-locating with the 14th edition of The Stone Show & Hard Surfaces, the principal industry event for surface design.
Established 26 years ago, th
