Purpose

To include a Mortgagee Exclusion clause in a
Deed of Variation of the above agreement.
This is part of a wider exercise by the housing association Cross
Keys Homes Limited, which is a charitable Community Benefit
Society, to raise funding secured against their properties to
assist in their social housing initiatives.

Decision

The insertion of a mortgagee exclusion clause
would allow Cross Keys Homes to raise an increased amount of
funding against their properties, by allowing the lender to
repossess the homes should there be a default on the borrowing by
the housing association. The association states that such a
repossession has never happened in the history of the social
housing sector. Although the production of more affordable housing
in Rutland cannot be guaranteed, this would enable Cross Keys
– who have two schemes in Rutland – to develop more
properties in their area of operations. (The other scheme does not
have a section 106 agreement.) The scheme at Tinwell has three
affordable rented homes and one shared ownership home.
Registered Providers do sometimes refinance their housing stock and
have queries regarding their existing properties. The use of
mortgagee exclusion clauses is common within the sector and it is
slightly surprising that Cross Keys did not require one before
taking on the properties in Tinwell.