Please note that Homes England updated the Capital Funding Guide on 29/07/2022 in respect of “Key Information Documents” (“KIDs”). See Capital Funding Guide, Section 1 ”Shared Ownership”, paragraph 11.3 “Key Information Documents for shared owners”.
We already knew that KIDs have to be used for schemes where the new prescribed form of lease has to be used – i.e. (a) 21/26 grant funded schemes or (b) S.106 schemes with post December 21/March 22 planning.
BUT: as of Friday 29/07/2022, Homes England has introduced the following brand new requirement:-
1. For any 2016/21 grant funded schemes RPs should start using the newly published “2016/2021 Key Information Documents” for both new sales and re-sales, to be found here.
2. There are 3 separate sets of “2016/2021 Key Information Documents” –
a) Standard Shared ownership
b) Protected Areas
c) Older Persons Shared Ownership
3. NB: THESE ARE NOT THE SAME AS THE KIDs TO BE USED FOR 2021/26 GRANT FUNDED SCHEMES OR SCHEMES WITH POST-DECEMBER 21/MARCH 22 PLANNING
4. These new 2016/21 KIDs MUST be used as from 15/09/2022 – until then the old form of Key Information contained in Appendix 3 of the SO lease can still be used.
5. The new requirement to use the new 2016/21 KIDs involves fundamental changes in administration and practice for RPs. The Capital Funding Guide states the following:-
a) The Key Information Document packs should be completed and presented by providers for the sale of new 2016/21 grant funded Shared Ownership homes.
b) It is a condition of grant funding that these documents are completed and provided to the customer no later than at reservation stage. The completed documents should be sent to the buyer’s solicitor along with the Memorandum of Sale. Providers should obtain confirmation from the buyer’s solicitor that these have been provided to the customer.
c) Each Key Information Document has a guidance page for providers which contains instructions on how and when they should be used. The ‘Summary of costs of the Shared Ownership home’ and ‘Key information about Shared Ownership’ documents should be explained to the customer who should be given the opportunity to ask questions before reserving the home.
d) The documents can be branded but the information within the fields and the order of information as set out must not be altered.
e) The documents can be made available electronically, but providers must ensure there are accessible versions (including print) available for customers who require them. If the document is printed, the information contained in the hyperlinks must also be shared.
6. NB: Homes England has confirmed the following as far as re-sales are concerned:-
In the following scenario:-
1. RP grants T1 a SO lease in 2020 on a 2016/21 grant funded scheme; and then
2. In 2023 T1 sells its SO lease to T2
the RP has to provide T2 with 2016/21 KIDs relating to the sale by T1.
RPs must therefore ensure that for any 2016/21 grant funded shared ownership sales they are fully aware of this new requirement and take the necessary steps to implement it – paying particular attention to the early reservation stage of such sales at which the new 2016/21KIDs must be provided.
If you require any further information please contact Stavrina Tofallis, Head of Residential Property or Dominic Bauers, Solicitor, Development Sales.