Shared equity - administration procedures for OMSE and NSSE: guidance
Changes to administrative procedures for Open Market Shared Equity (OMSE) and New Supply Shared Equity (NSSE) schemes (ref. MHDGN 2016/05).
This Guidance Note tells you about certain changes to the Open Market Shared Equity (OMSE) and New Supply Shared Equity (NSSE) Scheme Administrative Procedures. A new Post Purchase Information Leaflet for shared equity owners has also been published on the Scottish Government website.
The changes to the OMSE Administrative Procedures were introduced in April 2016 and the changes to the NSSE Administrative Procedures will apply with immediate effect.
OMSE Administrative Procedures
The following changes have been made to the OMSE Administrative Procedures:
- minor amendments to the Standing Instructions and shared equity documentation in Annex A
- added information in Annex C on establishing affordability and means testing applications from disabled applicants
- changes made to the Passport Letter in Annex D to accommodate the requirements of the Mortgage Credit Directive
- an update to the threshold prices in Annex E
- changes to the Sales Log Form in Annex H to simplify it and to help improve monitoring information on the scheme
NSSE Administrative Procedures
The following changes have been made to the NSSE Administrative Procedures:
- minor changes to the Offer of Grant and shared equity documentation set out in Annex A
- A new template letter is included Annex K. In order to accommodate requirements under the Mortgage Credit Directive, a copy of the letter must be sent to every eligible buyer who has been assessed as eligible for shared equity support, before the RSL instructs its solicitors to issue to the purchaser's solicitors a formal legal offer for the sale of the property. This is required to accomodate the requirements of the Mortgage Credit Directive
- changes to the Sales Log Form in Annex F to simplify it and to help improve monitoring information on the scheme
Post Sales Information Leaflet
A Post Sale Information Leaflet for shared equity owners has been published on the Scottish Government website and registered social landlords and local authorities should ensure that a copy is provided to every buyer at settlement.
It has been prepared in a question and answer format and covers the main queries that shared equity owners ask after they have purchased their home. It should also be helpful to registered social landlords and local authorities should they receive any post-sale queries from shared equity owners.
Contact
Email: MoreHomesAreaNetwork@gov.scot
Telephone: 0300 244 4000
Post:
Scottish Government
More Homes Division
Area 1G-South
Victoria Quay
Edinburgh
EH6 6QQ
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