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Homes England Audit Notes: Model Leases in Shared Ownership Schemes

As part of the Homes England audit process, we have reviewed the model leases used in shared ownership schemes funded through various government programs. The purpose of this review is to ensure that the leases meet the necessary requirements and standards.

Key Findings and Recommendations

Section 11: Model Leases

Mortgageability

  • Ensure that the shared ownership leases are mortgageable and contain the required fundamental clauses.
  • Check that the correct model lease has been used, and the fundamental clauses for the relevant funding program have been included. Make sure no changes have been made to the defined terms without permission from Homes England.

Auditor Notes

Review Checklist

  • Please check the following:
    • The correct model lease has been used
    • The correct fundamental clauses for the relevant funding program have been used
    • No changes have been made to the defined terms (unless permission is held on file)

Additional Recommendations

Traveller Pitches and Move On Schemes

Traveller Pitches

  • Ensure that the scheme matches the Homes England traveller pitch standard definition.

Move On Schemes

  • Check that the scheme offers the required type of accommodation, and for schemes providing accommodation to survivors of domestic abuse, ensure compliance with the ‘Move On Standard’.

Care and Support Specialised Housing Fund (CASSH)

CASSH Requirements

  • Ensure that the scheme offers individual dwellings with their own front door.
  • Check that residents/clients reflect the published group definitions, and service charges included in the rent only cover building-related charges.

Conclusion

The audit has identified some areas for improvement, which are outlined above. It is essential to ensure compliance with the required standards and regulations to maintain the integrity of the shared ownership schemes. We recommend implementing the necessary changes and providing evidence of compliance with our office.

For further information or assistance, please contact us at complianceaudit@homesengland.gov.uk.