11 Valuations and Letter of Reliance
Scottish Government practice is that it must be able to rely upon all Scheme 1 valuations including valuations in Home Reports. Scottish Government is unable to accept desktop-based valuations. Where a valuation is instructed directly by the RSL (e.g. in cases where the owner is increasing their equity stake) the RSL must ensure that the valuation is addressed to them or to The Scottish Ministers c/o themselves as appropriate. Where the valuation is instructed by a third party (e.g. in the case of a remortgage the Primary Lender or in the case of a sale the Seller) a Letter of Reliance must be obtained from the Valuer. Once again this Letter of Reliance should again be addressed either to the RSL or Scottish Ministers as appropriate.
- If the Shared Equity transaction was entered into prior to 6th April 2008 the documentation will be in the name of the RSL and the relevant Valuation/Letter of Reliance should be addressed to the RSL;
- if the Shared Equity transaction was entered into post- 6th April 2008 the documentation will be in the name of Scottish Ministers and the relevant Valuation/Letter of Reliance should be addressed to Scottish Ministers c/o the RSL.
RSLs should accordingly be aware of when the Shared Equity arrangement was entered into in order that the Valuations and Letters of Reliance are correctly completed by the Valuer. As you will see from the correspondence there are occasions when the Valuer will require to see a copy of the Shared Equity Agreement itself and RSLs should ensure that a copy is available from the outset.