Shared Ownership Barclays plc Conveyancing Requirements

Barclays plc shared ownership obligations are expressed in Part 1 of the Council of Mortgage Lenders’ Handbook.Housing associations, other social landlords and developers sometimes provide schemes under which the borrower will not have 100% ownership of the property and a third party will also own a share or will be a taking a charge over the title. In these cases you must check with Barclays plc to see if they will lend and what their requirements are unless we have already provided these

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Last updated on 20/02/2025 Part 2 of the UK Finance Lenders’ Handbook for Barclays plc deals with who you need to contact If different from paragraph 1.11, i.e lending on affordable housing, shared equity and shared ownership and where relevant their requirements:

Issuing Office.
We will lend on both shared ownership and shared equity tenures. For shared ownership leases, the borrower must be acquiring at least a 25% share and the lease must be in the Housing Corporation standard form which includes a mortgagee protection clause. The RSL's consent to our charge should be obtained in the usual way.
For shared equity, you should satisfy yourself that the second charge, and in particular the insurance provisions, does not prejudice our security in any way. If the second charge contains a restriction, please refer to the Issuing Office.
Section 106 agreements

Buy to let applications
Where there is Section 106 agreement in place and the transaction is Buy to Let, you must inform us and the application will be declined.
The presence of a section 106 agreement is only acceptable for residential transactions.

Residential applications -General
The property must be used as the applicant’s only or main residence.
You must notify us if the existence of such an agreement will adversely affect our security.
Section 106 agreements must contain a mortgagee exclusion clause to protect the mortgagee in the event that the registered provider defaults.
You should obtain written confirmation from the borrowers that they are able to comply with any outstanding provisions in the Section 106 agreement (or that they will be carried out by another party), without making it a commercial proposition. You should retain this in your file.


Residential applications- Restrictions on re-sale/ disposal
The Section 106 agreement may stipulate that the Local authority has the right to nominate a buyer (meeting defined eligibility requirements) when the property is sold or disposed of: If such ‘nomination rights’ exist or there are any restrictions as to whom the subject property can be sold (whether by the borrower or mortgagee in possession), the clause must stipulate that the total time period within which an eligible buyer must have exchanged contracts / concluded missives should not exceed 3 months from receipt of the notice to sell; after which the mortgagee in possession must be free to market the property at the open market value, free from these restrictions.
The property must not be on a retirement development with an over 55 age restriction.

Residential applications-Re-sale price covenant (discounted purchase price)
Where the Section 106 is subject to a re-sale price covenant, meaning a discount applies in perpetuity, this is acceptable only where the restriction does not apply to the mortgagee in possession.

Residential applications-Moratorium period
Where a clause exists that provides for a registered social landlord, registered provider or local authority to buy back an affordable housing unit if the mortgagee serves default notice; this clause must stipulate that the sale will complete within a period no greater than 3 months from the date at which the mortgagee gives notice of their intention to dispose of the property; after which time the property must be released from affordable tenure enabling the mortgagee in possession to dispose of the security.
The clause must also stipulate that, should this right be exercised, the consideration should not be less than the amount due and outstanding under the terms of the relevant security documentation including all accrued principal monies, interest, costs and expenses.

Where the security is leasehold, please pay attention to the fact that only situations where Barclays plc will accept a restriction on the mortgage or assignment (whether by a tenant or a mortgagee) of the lease is where the person whose consent needs to be obtained cannot unreasonably withhold giving consent. The necessary consent for the particular transaction must be obtained before completion. If the lease requires consent to an assignment or mortgage to be obtained, you must have this in place on or before completion (this is particularly important if the lease is a shared ownership lease). It is important not complete without this.

The information contained within this webpage is for general information purposes only for lawyers in England and Wales, it does not constitute advice and you should always check the UK Finance Lenders’ Handbook for Barclays plc shared ownership requirements as well as the mortgage offer. Whilst we endeavour to keep the information up to date and correct but does not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information. The same caveat applies to members of the public looking at this page. If you wish to find a shared ownership conveyancing specialist on the Barclays plc panel or a shared ownership mortgage broker click here.