Annex 7 – Enforcement of Major Lender safety / Appointment of Trustee – After Sale Shared Fairness Procedures

Annex 7 – Enforcement of Major Lender safety / Appointment of Trustee

Annex 7(A) – Letter to Proprietor on receiving copy of calling up observe from Lender and/or notification that the Lender is consideringre-possession

Insert Addressee/ Date Expensive

Challenge of Calling up Discover by [ Insert name of Lender] (“your Lender”)

Insert Deal with

[[ Insert name of Lender / Lender’s agent] have contacted us to tell us that they’ve served a calling-up observe upon you [ on behalf of insert name of Lender if served by solicitors on behalf of Lenders] because of your failure to keep up funds due on the mortgage account secured on your house.] OR

[We have been informed that you may be in financial difficulties and may be struggling to maintain the mortgage payments on your home and that your lender, [Insert name of Lender] is contemplating taking motion to re-possess the property.]

Please word that we act for the Scottish Ministers on this matter and never for you and can’t offer you recommendation. We’d nevertheless draw your consideration to the truth that the observe strongly recommends that you just take recommendation from a solicitor, Residents Recommendation Bureau, different recommendation company or an accredited lay consultant

While will probably be for you and your adviser to determine how greatest to proceed, it’s possible you’ll want to word that in case you are at risk of getting your house repossessed because of monetary difficulties, the Scottish Authorities might be able to enable you to. The Scottish Authorities operates the Dwelling House owners’ Assist Fund, to assist homeowners who’re experiencing problem in paying any loans which can be secured towards their property.

Below this scheme the Scottish Authorities might, in sure circumstances, have the ability to prepare for a social landlord similar to a housing affiliation or native authority to purchase your house and so that you can proceed to dwell there as a tenant.

Should you want to take into account this feature you or your adviser ought to contact your native Residents Recommendation Bureau, Cash Recommendation Scotland outlet or Native Authority Cash Recommendation Centre as quickly as potential to find out whether or not or not you can apply to the Dwelling House owners Assist Fund.

Yours sincerely

A replica of the Scottish Authorities’s Shared Fairness Scheme Privateness Discover might be seen at https://beta.gov.scot/publications/shared-equity-schemes-privacy-notice/

This privateness observe illustrates how your private data will probably be utilized by the Scottish Authorities in relation to the operation of its shared fairness schemes and explains your rights underneath the Basic Information Safety Regulation (EU) 2016/679 and train these rights.

Annex 7 (B) – E-mail to Lender / Lender’s agent on receiving copyof Calling up Discover and/or notification that the Lender is contemplating re-possession

The Scottish Ministers

( Insert identify of Proprietor)( the “Proprietor”)

[ insert name of Lender ]( the “Lender”) Insert Deal with (the “Property”)

I seek advice from your letter of ( Date ) informing [us/ Scottish Ministers] that [you have been instructed to serve a Calling up Notice on the Owner in respect of the Property]/[the Lender is considering taking action to call-up its security over the Property] which has been funded by one of many Scottish Authorities’s shared fairness schemes.

Now we have at this time written to the Proprietor to tell them that when discussing the matter with their adviser they might want to take into account whether or not help must be sought underneath the Scottish Authorities’s Dwelling House owners Assist Fund which incorporates the Mortgage to Hire Scheme. We’re additionally referring the matter to Scottish Authorities who might want to focus on with the Lender direct. Do you could have the identify and e-mail / telecom particulars of the one that is coping with this for the Lender?

Please word that underneath the Rating Settlement entered into between Scottish Ministers the Proprietor and the Lender, which is within the kind accredited with UK Finance (previously CML), the Lender could also be underneath an obligation to seek the advice of with Scottish Ministers with a view to agreeing on the phrases of any sale. The Rating Settlement may even present that each the Lender and Scottish Ministers are permitted to reveal to one another data on the Proprietor and their affairs and that Scottish Ministers would want to be saved absolutely apprised of the place.

Please contact Scottish Authorities’s solicitors, Harper Macleod, in the event you want to focus on additional.

Yours sincerely

Proposed letters/ emails to Trustee–

Annex 7(C) – E-mail to Trustee on notification of Appointment

To Trustee,

Inset Identify of Proprietor (the “Proprietor”)

Insert Deal with of Property (the “Property”)

We perceive that you’ve got been appointed as Trustee for the Proprietor.

As you could have seen from title search over the Property Scottish Ministers [alternatively insert name of RSL] have a Customary Safety over the Property in relation to obligations by the Proprietor in respect of shared fairness preparations underneath one of many Scottish Authorities’s shared fairness schemes.

Please word that the character of the shared fairness preparations makes it tough to provide you with a redemption determine. The determine for redemption relies on the precise sale worth expressed as a share of the fairness stake. We’d ask you to think about this when assessing any worth on realisation of the property.

[Scottish Ministers / We] belief that appropriate preparations might be made to make sure that the Proprietor will stay inside the Property. Nevertheless, ought to the place change and you plan to take motion to promote the property, I might be grateful in the event you may please inform us as quickly as potential.

Lastly, please word it isn’t [our/ Scottish Ministers’] intention at this stage to train any rights which they might have over the Property as safety holder because of your appointment.

A replica of the Scottish Authorities’s Shared Fairness Scheme Privateness Discover might be seen at https://beta.gov.scot/publications/shared-equity-schemes-privacy-notice/

This privateness observe illustrates how your private data will probably be utilized by the Scottish Authorities in relation to the operation of its shared fairness schemes and explains your rights underneath the Basic Information Safety Regulation (EU) 2016/679 and train these rights.

Yours sincerely

Annex 7(D) – E-mail to Trustee in respect of potential actionbeing taken in respect of the Property

Expensive

Insert Identify of Proprietor (the “Proprietor”)

Insert Deal with of Property (the “Property”)

We perceive that you’re at the moment deciding whether or not it is best to promote the Property over which [Scottish Ministers/ We] have a Customary Safety over the Property in relation to obligations by the Proprietor in respect of shared fairness preparations underneath one of many Scottish Authorities’s shared fairness schemes.

While will probably be for you and your advisors to determine how greatest to proceed it’s possible you’ll want to word that Scottish Authorities might be able to help. Scottish Authorities operates the Properties House owners Assist Fund to assist House owners who’re experiencing problem in paying any loans which can be secured towards the Property.

Below this scheme, Scottish Authorities might, in sure circumstances, have the ability to prepare for a social landlord similar to a Housing Affiliation or native authority to purchase the property and for the Proprietor to proceed to dwell there as a tenant.

Should you want to take into account that possibility you or your advisors might want to contact Cash Recommendation Scotland or your native authority cash recommendation centre as quickly as potential to find out whether or not or not the Proprietor may apply to the Dwelling Proprietor Assist Fund.

A replica of the Scottish Authorities’s Shared Fairness Scheme Privateness Discover might be seen at https://beta.gov.scot/publications/shared-equity-schemes-privacy-notice/

This privateness observe illustrates how your private data will probably be utilized by the Scottish Authorities in relation to the operation of its shared fairness schemes and explains your rights underneath the Basic Information Safety Regulation (EU) 2016/679 and train these rights.