4  Acquisition

4.1 General

4.1.1 This section sets out the Agency's Requirements in respect of RSLs purchasing property

4.1.2 Where the RSL makes a speculative purchase it does so at risk and cannot pre-empt the Agency's investment decisions.  The Agency cannot guarantee future funding and the RSL must accept the risks involved in making such purchases

4.2 Mortgage Rescue

4.2.1  Mortgage Rescue cannot be funded by SHG whether paid through the Agency's National Affordable Housing Programme (NAHP), the RCGF, or the Disposal Proceeds Fund.  NB – Mortgage Rescue is not the same as Flexible Tenure.  For details of Flexible Tenure see Recovery sub section 6.6

4.3  Public Sector Purchases 

4.3.1  Purchases of land from local authorities and other public sector bodies must be considered carefully in order to avoid the RSL having to provide, non-monetary consideration but without an appropriate reduction in the monetary consideration (the price) paid by the RSL.   

 

4.4 Property Title

4.4.1 The Agency requires that when RSLs acquire an interest in a property or where works are to be done, the property must offer “good title”. For guidance on what “good title” means, click on the asterisk.  

 

4.4.2 The Agency understands that where RSLs are unable to demonstrate “good title” they may have "possessory title" supported by an indemnity insurance which could 'pay off' a third party, who at a later date was able to provide documentary evidence of "good title" to that land. Where no other route is available to the RSL the Agency will consider funding on the basis that:

• the RSL  agrees to bear any risk if challenged, and
• accepts that grant repayment would be required if the property was no longer available for the purposes for which it was funded

4.4.3 In the unlikely event that a third party demonstrated "good title" but was not willing to be 'paid off' by the insurer  the RSL would need to contact the Agency's Regional Investment Team accordingly