Conveyancing solicitors are being alerted to a new model shared ownership lease which must be used on all home agreements funded by the Homes and Communities Agency (HCA) and granted on or after April 6 2010.
The model lease has been revised to clarify and improve protection for the lender and to give a clearer explanation to the consumer.
The significant changes are to the mortgage protection clause which is important to lenders who wish to be able to clearly determine when the new lease is used.
Although the revised lease is for new build HomeBuy properties, granted on shared ownership terms, the HCA is working on a revised version of the Social HomeBuy lease and the lease for properties in Protected Areas.
Both will be similar to the revised lease in terms of their form but contain provisions on discounts, for Social HomeBuy, and options for either limiting staircasing or guaranteeing buyback for properties in Protected Areas.
