Shepherd Chartered Surveyors has welcomed changes to the Council of Mortgage Lenders’ Disclosure of Incentives Form and said that the changes should help restore consumer confidence in the new build homes market.
The changes are being introduced following the uncovering by the Council of Mortgage Lenders of failures to disclose third party payment finder’s fees and manipulation of the contract. All the relevant professional organisations (Council of Mortgage Lenders (CML), Home Builders Federation (HBF) and Homes For Scotland (HFS)) have now amended the frequently asked questions document to encompass this and alerted their respective members.
The DIF was introduced three years ago as a method of alerting valuers and lenders to any incentives being offered by developers to purchasers of newly built or renovated homes. It seeks to draw all the relevant information about newly built, converted and renovated property transactions into a single form in order to improve transparency and simplify the flow of information to all key parties involved in the transaction.
Amongst the changes to the DIF are a renewed emphasis on disclosure of schemes such as shared ownership, equity loans and part exchanges, which most developers are promoting in an effort to boost sales.
Ian Fergusson, managing partner of Shepherd Chartered Surveyors, said: “The updated version of the DIF, will help ensure that any incentives offered to buyers by the developer are clear to both lenders and borrowers so they have a reliable view of what is being paid for the property in net terms. This will assist a smoother route to a successful transaction.
“Given the obligations it imposes on developers, valuers and conveyancers, the updated DIF will provide lenders with the comfort and transparency they require and should help restore confidence in the new build housing market.”
The new changes are due to come into effect on 1 October 2011.
For further information please contact Ian Fergusson on 01786 450438
Issued on behalf of Shepherd by Liquorice Media tel 0141 561 4018 www.liquorice-media.com
Date 23rd August 2011