Publication - Guidance

Help to Buy Affordable New Build 2018: administrative procedures for agents

Published: 30 Oct 2018
Part of:
Housing
ISBN:
9781787813250

Updated guidance for administering agents on managing and assessing applications. Previous guidance was published in 2017.

55 page PDF

496.5 kB

55 page PDF

496.5 kB

Contents
Help to Buy Affordable New Build 2018: administrative procedures for agents
Appendix 1

55 page PDF

496.5 kB

Appendix 1

Solicitor's Form 1

To: [Details of Administering Agent]

From: Solicitor's reference: [●]
[Insert details of solicitor]

Scheme: Help to Buy (Scotland) Affordable New Build Scheme

Dear Sirs

Purchaser: [Insert Details]
Builder: Builder and Development Name [Insert Details]
Property: Property being purchased [Insert Details]

We confirm that we have been instructed to act on behalf of the Purchaser named above in connection with the purchase of the Property. We also confirm that we have been instructed to act on behalf of the Purchaser's lender (delete, if not applicable).

We confirm that we are in receipt of your Authority to Proceed dated [●] and your Standing Instructions to Solicitors and the accompanying documentation.

We confirm that:-

1 we will comply with the instructions that have been supplied to us;

2 we will ensure that the financial terms of the proposed purchase accord with those set out in the Authority to Proceed;

3 we have read the instructions and that we are not aware of any Incentives being provided to the Buyer which we are required to notify to you [save for ……………and/as set out in the attached copy of the Builder's UK Finance Disclosure of Incentives Form]*;

4 we have obtained a completed copy of the UK Finance Disclosure of Incentives form from the solicitor acting on behalf of the Builder and it complies with our instructions;

5 [where the Authority to Proceed makes reference to the Purchaser providing some of [his][her] own investment to the purchase, the Purchaser has confirmed that that investment will be available upon completion];

6 EITHER

[the Purchaser has received a mortgage offer from a Qualifying Lender. We further confirm that the identity of the Qualifying Lender and the amount of the primary loan are as set out below:-

Qualifying Lender: [●]

Primary loan (net of fees): [£[●]];

Mortgage fees: [£[●]];

Scottish Ministers’ Contribution [£ [ ]

and that the balance of £[●] is to be provided by the Buyer (which includes any deposit from the Buyer and any relevant permitted Incentive from the Builder);]

OR

[the Purchaser, being aged 60 or over, is not taking out a mortgage to assist with the purchase of the Property. The purchase price for the Property will be made up as follows:-

Purchaser's contribution [£[ ]];

Scottish Ministers' Contribution [£[ ]].

[All or part of the Purchaser's contribution is made up of the free proceeds from the sale of an existing property at [Insert address of existing property]. Where we were instructed in the sale of that property or are instructed in its sale, we confirm that the free proceeds (after repayment of any existing secured loan) were, or are expected to be [£[   ]]. Where we were not, or are not, instructed by the Purchaser in the sale of that property, the Purchaser has confirmed to us for the purposes of this Form 1 that the free proceeds (after repayment of any existing secured loan) were, or are expected to be [£[   ]].]

7 the Full Purchase Price of the Property is [£[●]];

8 the calculation of the full purchase price minus Scottish Ministers’ contribution (and therefore the Contribution and the Contribution Percentage) does not include the mortgage fees referred to in paragraph 6;

9 missives for the purchase of the Property were concluded on [specify date];

10 the anticipated completion date is [ specify date].

11 we have received written confirmation from the Purchaser (and from each Purchaser where there is more than one person) [that they have no interest in any other dwelling] OR [that the Purchaser has an interest in a dwelling but that it intends to sell or complete the sale of any dwelling(s) that they have an interest in, on or before the date of completion. The Purchaser has confirmed that it anticipates that conclusion of the sale of such dwelling shall take place on or before the anticipated completion date specified in paragraph 10]**. We further confirm that we have received no notice or indication that contradicts such written confirmation(s) from the Purchaser;

12 the Purchaser has received copies of the Help to Buy (Scotland) Affordable New Build Buyer's Guide, and the Authority to Proceed and we have advised [him][her][them] of their contents, and also on the main terms of, and legal effect of, the shared equity documentation in accordance with the Standing Instructions to Solicitors.

13 [Subject to final inspection*] the Full Purchase Price for the Property shall not exceed the market value of the Property as stated in the valuation report or any refresh of the report (or the final mortgage offer) for the Qualifying Lender (a copy of which is attached or will be exhibited prior to settlement ).

Yours faithfully

[Date and insert details of solicitor signing report]

*Amend as appropriate

** Delete as appropriate

The Solicitor's Form 1 paragraphs 1 – 13 must be returned unamended (save for the words in square brackets at the start of paragraph 13 as indicated) to the Administering Agent. Amended forms will not be accepted by the Administering Agent.


Contact

Email: Shared Equity Enquiries