First Homes Fund: Administrative Procedures

Appendix 1

Solicitor’s Confirmation Letter

To: [Details of Administering Agent] From: Solicitor's reference: [●]

[Insert details of solicitor] Scheme: First Homes Fund Dear Sirs

Purchaser: [Insert Details]

Builder[if a new build]: 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. The Purchaser’s offer has been accepted. 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 Award Letter dated [●] and your Standing Instructions to Solicitors and the accompanying documentation. We have not been notified that Scottish Ministers are unwilling to instruct us based on the said Standing Instructions.

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 Award Letter;

3 [where the Award Letter refers 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];

4. [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);]

If Applicable

[Where there are joint Purchasers and 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 Confirmation Letter that the free proceeds (after repayment of any existing secured loan) were, or are expected to be [£[]].]

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

6 the calculation of the Contribution and the Contribution Percentage does not include the mortgage fees referred to in paragraph 4;

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

8 the anticipated completion date or agreed date of entry is [specify date].

9 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 where there are joint Purchasers, and one of the Purchaser’s has an interest in a dwelling , known as the “Property Owning Purchaser”, that they intend to sell or complete the sale of any dwelling(s) that they have an interest in, on or before the date of completion. The Property-Owning Purchaser has confirmed that they anticipate that conclusion of the sale of such dwelling shall take place on or before the anticipated completion date/date of entry specified in paragraph 8]**. We further confirm that we have received no notice or indication that contradicts such written confirmation(s) from the Purchaser;

10 the Purchaser has received copies of the First Homes Fund Buyer's Guide, and the Award Letter 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.

11 Subject to paragraph 9, to the best of our knowledge and belief, the Purchaser meets the definition of "first-time buyer" for the purposes of the First Homes Fund Scheme.

12 The Valuation within the Home Report or Mortgage Offer is [£X].

13 The Scottish Ministers’ Percentage Contribution is calculated to two decimal places, as follows: the Scottish Ministers’ Contribution value stated at paragraph 4 divided by: (either the Valuation stated at paragraph 12 OR the Purchase Price stated at paragraph 5, whichever is the lower) times one hundred.

14 The Purchaser’s percentage equity stake is 100 minus the percentage at paragraph 13, to two decimal places.

15 The Purchaser has been advised that the Buyer’s Administration Fee detailed with the Award Letter must be paid to the Administering Agent no later than three weeks before the anticipated completion date, if they have not already paid it. Cheques will not be accepted.

16 The Purchaser has been advised that they should complete the confidential online Sales Log questionnaire issued with the Award Letter, before the anticipated completion date. This is for statistical monitoring purposes and the answers will not affect their application.

Yours faithfully

[Date and insert details of solicitor signing report]

*Amend as appropriate

** Delete as appropriate

The Solicitor's Form 1 paragraphs 1 – 11 must be returned unamended to the Administering Agent. Amended forms will not be accepted by the Administering Agent.