It is a stated government policy to provide incentives for the housing market. Part of this initiative is conducted by way of subsidised loans provided by the Homes & Communities Agency (HCA).
Typically this government agency will work with builders of new housing to offer funding for first time buyers or for more affordable homes.
The HCA acts like any other mortgage lender, albeit that the financing is subsidised. However, instead of monies being advanced to the purchaser’s legal advisers for onward transmission to the seller, the HCA releases monies direct to the developer on completion. Any monies released by the HCA to assist the purchaser in obtaining a property are secured against the property title as a second mortgage.
In order to participate in a HCA funding scheme the developer must undergo due diligence and be seen to be financially sound and to provide suitable properties for sale. The HCA require the handling of monies to be made through an approved law firm which will give undertakings to the HCA about management and release of monies.
We are on the HCA approved legal panel. We administer HCA funds act for development sites across the country. Annual volumes are in 500 – 1000 properties. Typically we will also act for the developer on the plot sale. However we can just administer the HCA scheme whilst another law firm looks after the conveyancing of the new build property.
How we can help
You may well have existing relationships with legal advisers undertaking administration of HCA funds. If you feel that you need an alternative or perhaps just require a second legal adviser we would be delighted to discuss your needs.
We are quite happy to undertake work on a trial basis, provided that we can establish a way of working closely together which is going to provide the service that you need.
If you would like help with administration of HCA funds for your properties please contact our team.