Shared Ownership: Repossessions Sample Clauses
The 'Shared Ownership: Repossessions' clause outlines the procedures and rights involved when a shared ownership property is repossessed, typically due to a default on the mortgage or rent. It details how the interests of both the shared owner and the landlord (often a housing association) are handled during repossession, such as the order in which sale proceeds are distributed or the process for transferring ownership shares. This clause ensures that all parties understand their rights and obligations in the event of repossession, thereby reducing disputes and clarifying the financial and legal outcomes for both the shared owner and the landlord.
Shared Ownership: Repossessions. 4.5.1 Policy in respect of defaulting shared owners is contained in Housing Corporation Circular 26/86 (and any successor circular or like publication).
4.5.2 The basic approach to calculating recoverable Firm Scheme Grant, including any deferrals and any Firm Scheme Grant to be written off is the same as for any other Shared Ownership Staircasing, although there are important differences:
(a) Grant Recipients may accept (for recovery purposes) the valuation by the mortgagee’s valuer instead of one by an Independent Qualified Valuer;
(b) the gross sale receipt is the money received from the mortgagee, as stated in the mortgagee’s statement of account for details.
4.5.3 The eligible deductions from the Gross Sale Receipts are:
(a) the Deemed Loan Debt attributable to the percentage sold; and
(b) the Staircasing Allowance.
4.5.4 Any Shortfall on Staircasing receipts remains a debt due to the Grant Recipient by the defaulting leaseholder.
4.5.5 Where the leaseholder’s mortgagee has used the Mortgagee Protection Clause, and the Grant Recipient has suffered a Shortfall on Staircasing receipts recoverable Firm Scheme Grant may (with the Agency's consent) be written off by the Grant Recipient or deferred provided that the Grant Recipient confirms in supporting documentation to the written calculation that they:
(a) are in the process of obtaining legal advice, or have already obtained legal advice on the prospect of recovering the money due from the leaseholder;
(b) will take all necessary steps to recover the money due; and
(c) undertake to pay the money to the Agency if applicable within fourteen (14) days of receipt.
4.5.6 In deciding what action is reasonable to pursue the debt the Grant Recipient should obtain the written advice of its solicitors. A copy of the solicitor’s advice must be kept with the written calculation for audit purposes.
4.5.7 If action is taken as advised by the Grant Recipient 's solicitor, and no receipts are generated, any expenses or abortive costs will NOT be allowed against grant recovery UNLESS the surpluses from Shared Ownership Staircasing sales completed in the previous twelve (12) months are insufficient to cover the costs.
4.5.8 Where the Grant Recipient incurs such a loss, the Grant Recipient may (with the Agency's consent) deduct the costs that it has incurred from a future Firm Scheme Grant recovery on a Shared Ownership sale or Staircasing in that scheme.
4.5.9 If the amount for which the defaulting leaseholder is liable ...
Shared Ownership: Repossessions. 4.5.1 Policy in respect of defaulting shared owners is contained in Housing Corporation Circular 26/86 (and any successor circular or like publication).
4.5.2 The basic approach to calculating recoverable Firm Scheme Grant, including any deferrals and any Firm Scheme Grant to be written off is the same as for any other shared ownership staircasing, although there are important differences:
(a) Grant Recipients may accept (for recovery purposes) the valuation by the mortgagee’s valuer instead of one by an Independent Qualified Valuer;
(b) the gross sale receipt is the money received from the mortgagee, as stated in the mortgagee’s statement of account for details.
4.5.3 The eligible deductions from the Gross Sale Receipts are:
(a) the Deemed Loan Debt attributable to the percentage sold. and