S11.6 Deferred Financial Commitment Standard Security

This is also known as “The Rents to Mortgages Scheme”, which began as an experimental scheme to run to 29 October 1992 and was continued after that date as it was successful. At present, the scheme is only available to tenants of Scottish Homes and of Scottish New Towns. The tenant will be entitled to purchase their house at a discounted price. Part of the purchase price will be paid by means of a normal house purchase loan from a Building Society or Bank, etc. The balance of the price will be met by the seller, effectively an interest free loan from the seller redeemable on the disposal of the property or the death of the purchaser.

The Deferred Financial Commitment will be protected by a Standard Security.

A typical style of minute for this Standard Security is:

(No. 205) 28 Dec. 2003
STANDARD SECURITY (in respect of Deferred Financial Commitment) by ?pWILLIAM CASSELLS ?nWALKER?z and ?pMARGARET GRAY ?nWALKER?z, both 2 Borthwick Place, Edinburgh – TO ?p?nSCOTTISH HOMES?z,  - over the subjects in the ?uthree?z immediately preceding Minutes. Dated 28 Nov. 2003.

Each sale under the scheme will therefore result in the recording of at least four deeds – a conveyance to the purchasing tenant, a Standard Security to a Building Society, a Discount Standard Security and a D.F.C. Standard Security. Unlike the time-expired Discount Security, a D.F.C. Security has to be formally discharged.