Updates to Key Information Documents – Shared Ownership11/08/23
For both sets of model leases (SOAHP 2016 to 2021 and AHP 2021 to 2026) there are Key Information Documents (KIDs) for shared owners that landlords are required to provide to purchasers. These are provided to help shared owners understand what they are purchasing.
In this insight we discuss the background of KIDs and who should provide them.
The Key Information Documents for SOAHP 2016 to 2021 homes were published on 29 July 2022 with providers expected to transition to using these as soon as possible for both new sales and resales, and by 15 September 2022 at the latest unless an extension to this date was agreed by Homes England in writing.
The KIDs forms should be completed and presented by providers for the sale of new and resale Shared Ownership homes. Providers should ensure that the appropriate KIDs forms are used dependent on the type of Shared Ownership home being provided and the relevant AHP programme it was funded through (AHP 2021 to 2026 or SOAHP 2016 to 2021). It is a condition of grant funding that these documents are completed and provided to the buyer no later than at reservation stage.
Who Provides the KID forms?
The Capital Funding Guide states that 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. If this requirement causes an unnecessary delay to the purchase, then providers may evidence compliance by one of the following means:
- written confirmation from the provider’s legal representative that the documents have been sent to the buyer’s solicitor, together with evidence that best endeavours were made to gain confirmation from the buyer’s solicitor
- written confirmation from the buyer that they have received and discussed the final suite of documents with their solicitor, together with evidence that best endeavours were made to gain confirmation from the buyer’s solicitor.
There is no prescribed format for the above. Email confirmation is acceptable.
Providers send the KID form to the buyer’s solicitor at the reservation stage. Capsticks also sends the KID forms to the buyer’s solicitor with their initial documentation on each plot sale and will not exchange without confirmation from them that these have been received. This ensures that providers are complying with Capital Funding Guide and their funding requirements.
How Capsticks can help
Capsticks acts for a large number of Registered Providers in shared ownership plot sales.
If you have any queries around what's discussed in this article, and its impact, please speak to Nalton Stembari and James Howard to find out more about how Capsticks can help.