Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 6
6
Accepted
Paragraph: 57
Relatives of deceased OPSO owners face unexpected and unfair service charge liabilities.
Recommendation
It can come as an unpleasant shock during a difficult time to relatives of deceased shared owners to find out that they are liable to pay service charge costs when their relative living in an OPSO property has died, despite the fact that there is no longer anyone living in the property using the services paid for through the service charge.
Government Response Summary
The Government and Homes England will amend the OPSO key information documents to clarify financial liabilities for beneficiaries and will consider mandating registered providers to include this information on their websites, while also offering providers options for supporting shared owners with the sale of their home.
Paragraph Reference:
57
Government Response
Accepted
HM Government
Accepted
19. The Government and Homes England will amend the OPSO key information documents to make it clear to potential buyers that the financial liabilities associated with their home may be passed on to their beneficiaries if they inherit the lease. We will also consider mandating registered providers of OPSO homes to include this information on their websites and in other relevant literature as a condition of government-grant funding. 20. More broadly, the Government always encourages people to seek independent financial and legal advice prior to the completion of any home ownership purchase, including those for shared ownership. This offers buyers the opportunity to discuss their financial liabilities under the terms of the lease, as well as what will happen to these liabilities if the lease is inherited by a beneficiary. As this is common to all forms of property inheritance, it is something that should be considered by all buyers, and not just those who are intending to purchase an OPSO home. 21.T he Government and Homes England are responsible for setting out the framework for how all forms of shared ownership should operate. This includes offering registered providers a set of options for how they can support shared owners, including those who have purchased OPSO homes, with the sale of their home. 22.T his includes an eight-to-four-week pre-emption period, where registered providers can find a nominated purchaser or take surrender of the lease. It also includes the possibility of registered providers using a financial resource known as a Recycled Capital Grant Fund to repurchase OPSO leases. This latter option is available at registered providers’ discretion, and they would need to take account of their wider financial position before exercising it. 23. Beyond this, registered providers must decide how best to support the sale of OPSO homes. We expect registered providers to offer general support with the marketing of homes and the identification of potential buyers, and we know that many do offer this support, as and when required.