Shared Ownership Principality Building Society Conveyancing Requirements

Principality Building Society legal requirements are explicit 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 Principality Building Society to see if they will lend and what their requirements are unless we have already provided these

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Last updated on 03/10/2024 Part 2 of the UK Finance Lenders’ Handbook for Principality Building Society 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:

Shared ownership:

We currently only lend against shared ownership schemes in Wales which involve either a Pobl Group lease or a Shared Ownership Wales standard template lease.
You must always obtain the lessor’s written consent to any Mortgage Offer issued by us.
In order for a shared ownership lease to be acceptable it is required to have:
A standard Mortgagee Protection Clause, a remaining lease term of at least 85 years and to be in the names of the borrowers only.
If the lease permits downward stair-casing we must pre-approve in writing any such offer from the landlord and all sale proceeds must be paid direct to us.
If the lease includes nomination or pre-emption rights these are generally acceptable to us providing the time scales involved cease to operate after 20 weeks and that, at such time the property may be sold on the open market.
You should none the less refer details of restrictions to us so we may refer them onto our valuer.
If the lease contains any other provisions which may adversely affect the value or marketability of the property you must provide us with further details and await our instructions.
We are not obliged to grant additional lending on shared ownership properties.
All queries should be referred to Mortgage New Business (see point 1.7 for contact details).

Shared Equity:

We will lend on certain Shared Equity properties where a scheme has been previously agreed. You are required to seek our confirmation prior to exchange of contracts.
All queries should be referred to Mortgage New Business (see point 1.7 for contact details).

s.106 agreements:

Whenever a property is affected by a s.106 agreement you are required to summarise the main points arising which may adversely affect the property’s good and marketable title. This summary should be sent to us in writing and be accompanied by an explanation of any associated risks and your advice in respect of these risks.
You should not proceed with the case until you receive our further instructions.

Please refer to Mortgage New Business (details in point 1.7) for any further clarification.

When is comes to leasehold, please only situations where Principality Building Society 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 obtain these on or before completion (this is particularly important if the lease is a shared ownership lease). You must 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 Principality Building Society 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 Principality Building Society panel or a shared ownership mortgage broker click here.