Shared Ownership Model leases - June 2023 updates
Published: July 6th, 2023
7 min read
The model leases for shared ownership homes funded through Home England's Affordable Homes Programme 2021 to 2026 were updated again on 07 June 2023.
The changes are as follows:
- Updates to page numbering, formatting and contents within the leases, to ensure consistency.
- Minor revisions to Particulars of Lease.
- Minor wording changes to the definition of "Valuer's Certificate" in some leases.
- Amendment of reference of "Mortgage Protection Claim" to "Mortgagee Protection Claim".
- Inclusion of an example clause 3.3.3 in the flat lease, to provide consistency with clause 3.4.5 of the house lease.
- Addition of paragraph 1.9 in the Staircasing Provisions in all leases. This requires the landlord to not unreasonably delay the acquisition of the additional share the leaseholder proposes to acquire.
- In the Initial Repair Period Schedule, an "either / or" option inserted in paragraph 5.5.3 as to when landlords can provide an update of the balance of the general repairs and maintenance allowance to the leaseholder. The updated balance can either be provided:
Both at the beginning of each Year and following an approved claim; OR
At the same time as serving Notice of Rent Increase; and following an approved claim; and in response to a written request from the leaseholder. Such update must include confirmation of any balance rolled over from the previous year and details of any previous approved claim(s) during the current year. (Note this additional requirement is only applicable to this second option for providing balances, which we suspect may be further amended.)
- In the 1% Staircasing Schedule:
Updated definition of "Additional Percentage Value Notice" to make it clear that this can form part of the notice of rent increase, or be served as a standalone notice. The notice must also specify how the Additional Percentage Value has been calculated.
Updated "HIP Index" definition to make it clearer that each lease should set out in the definition the property type applicable to the specific Premises.
Updated Example Additional Percentage Value Notice to follow the calculation more closely and to include an SDLT warning regarding potential payments where the purchase results in the leaseholder owning more than 80%. This is not however included in the OPSO and 80% DPA restricted staircasing leases.
The addition of a worked example of the Additional Percentage Value calculation.
The updated model leases can be found at paragraph 11.2.6 of the Capital Funding Guide: Capital Funding Guide - 1. Shared Ownership - Guidance - GOV.UK (www.gov.uk)