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Management Agreement Terms Allow Provider to Retain Overall Responsibility for Scheme Financial Control

A new management agreement has been put in place, allowing the provider to retain overall responsibility for scheme financial control. This means that the provider will be responsible for:

  • Monitoring property condition and occupancy
  • Letting rented homes on a written tenancy agreement between themselves and the occupant

The agreement also allows the provider to issue Shared Ownership leases to purchasers.

Contractual Requirement to Register Restriction on Title Met

The contractual requirement to register a restriction on title with Land Registry, indicating a requirement to gain Homes England consent to dispose, has been met. This ensures that any future disposal of the land requires Homes England approval.

Fundamental Clauses in Shared Ownership Leases

All fundamental clauses set out in the Shared Ownership chapter of the Capital Funding Guide have been included in shared ownership leases. These essential clauses ensure that the leases are mortgageable and contain all necessary requirements.

  • The provider has checked that the correct model lease has been used.
  • The provider has ensured that no changes have been made to the defined terms unless permission has been granted by Homes England.

Purchasers Meet Eligibility Requirements

Purchasers of shared ownership homes have met all eligibility requirements set out in the Capital Funding Guide. The provider has:

  • Conducted a thorough assessment of each applicant’s eligibility, including an initial eligibility assessment by a Help to Buy Agent.
  • Ensured that all supporting documentation relating to any exceptions agreed with Homes England is held on file.

Rents Calculated According to Formula

Rents for shared ownership homes have been calculated according to the formula set out in the Capital Funding Guide. The provider has:

  • Checked filed evidence against the CFG Rents and Service Charges section to ensure compliance with industry requirements.
  • Calculated any annual sinking fund charge does not include any external and structural repair work within the first 10 years for new Shared Ownership homes funded via the AHP 2021 to 2026.

Conclusion

Overall, the management agreement terms and shared ownership leases are in line with industry standards and ensure that all necessary requirements have been met.