The Trust services and sells house plots which are targeted at people with a local connection (to the Community Council area in which the particular plots are located) who
- cannot afford to build a home for themselves without the aid of a Rural Home Ownership Grant and
- are willing to accept the Trust's pre-emption rights conditions (called a Rural Housing Burden).
Buying an affordable housing plot | frequently asked questions
Am I eligible to buy a serviced plot from the Trust?
Trust plots are normally offered only to people who have a clearly established residential, family or workplace connection with the Community Council area in which the plot is located, and who are applicants who have been assessed as being Rural Home Ownership Grant-eligible and then offered a Rural Home Ownership Grant by Communities Scotland (see Section 14 for details of how to apply; and Section 15 for contact details for Communities Scotland and local Housing Associations).
However, if plots remain unsold the Trust is also willing to consider selling them to people who are not Rural Home Ownership Grant eligible but who still cannot afford local plot prices - provided the purchaser meets the Trust's other eligibility criteria and accepts its pre emption right conditions. For further advice and information please contact the Trust's Plot Marketing Officer on 01463 233549.
How much does a plot cost?
Plot prices are usually between £20,000 and £30,000 but may vary slightly from place to place and are set so that the Trust can recoup all of its site feasibility, purchase plot servicing and conveyancing costs and sell each serviced Rural Home Ownership Grant plot at a discounted price which is affordable to the eligible purchaser i.e. which costs significantly less than it would on the open market.
What happens to the money I pay for a plot?
The Trust recycles the funds to buy and service other sites in other needy communities.
Are there any conditions?
Yes. The Trust includes a pre-emption right, with conditions attached, in the title to every plot it sells. This means that the Trust has the legal right and discretion to buy back the plot - and the house and other permanent structures built on it - whenever the owner decides to sell, or transfer ownership of, the property.
These pre-emption right conditions have been endorsed by The Scottish Parliament in the 'Rural Housing Burdens' section of the Titles Conditions (Scotland) Act 2003. Rural Housing Burdens can be applied by Designated (by Ministers) Rural Housing Bodies of which the Trust is one.
What is the effect of the pre-emption right conditions?
The conditions are designed to a) restrict the buy-back price so that the house will be affordable to the next purchaser and b) protect the plot purchaser's capital investment to allow for a modest return on the money and effort invested in putting the house on the site.
What is the reason for the pre-emption right and the conditions?
The Trust needs to be able to give assurances to the communities it is trying to help and the landowners it buys land from.
The Trust wishes to assure small communities that the houses built on the plots will remain affordable to people with a local connection when they are sold. Communities want these houses to go to people facing the same kind of affordability problems as the first purchasers did until they were helped by the combined efforts of the community, Trust and landowner.
The Trust also wishes to give assurances to landowners, prepared to consider selling land at less than market value, that no-one will take unfair advantage of their generosity in years to come - neither the Trust nor buyers of the plots who would otherwise be free to sell the houses they have built at large profits to whoever can afford open market prices.
It is very important that anyone who is interested in buying a plot from the Trust (or, in due course, the house built on the plot) understands the purpose and the implications of the pre-emption right and conditions - which are, essentially, to protect the community's long-term interest in affordable local housing whilst allowing the individual plot or house purchaser to make a good home for themselves and their family and a modest return on their investment if they need to sell up and move on. Trust staff will be pleased to discuss matters with you but you are strongly advised to get your Solicitor's advice on the implications before making any decision on whether you would like to buy a plot or a house from the Trust.
Are there any other pre-emption right conditions?
Yes, there are three, as follows:
a) passing property on to a son or daughter
The Trust will allow the plot and the house etc built on it to be transferred by the owner to his/her son or daughter, provided that the transferee gives his/her written consent to a new Title to the property. This new Title, which will include the same pre-emption right conditions, becomes effective once the transfer takes place.
b) joint purchasers of a plot
Where a plot is bought jointly by a couple they will be bound 'jointly and severally' by the pre-emption right and conditions. This means that if one of the partners dies that the surviving partner would continue to occupy the home but still be bound by those conditions.
c) permanent occupation of the property
A Standard Security is included in the Title to the property to ensure that whoever owns the house built on the plot lives in it permanently and occupies it as their main residence. No leasing or sub-letting of the property will be permitted without the express written consent of the Trust.
Will I be able to get a mortgage for a serviced plot with pre-emption right conditions?
The Trust has received written assurances from both Communities Scotland and The Royal Bank of Scotland (other High Street lenders should be equally helpful if this information is presented to them) that they have no problems in making, respectively, a normal Rural Home Ownership Grant and a normal mortgage available to a Rural Home Ownership Grant-approved applicant purchasing one of the Trust's Rural Home Ownership Grant plots with the pre-emption rights and conditions attached.
What do I need to do if I should ever want to sell the house built on the plot?
Although the pre-emption right retained in the Title to the property ensures that the Trust will be notified if the occupant offers it for sale, the Trust asks that those intending to move on give as much notice as possible.
This will help both the seller and the Trust to avoid delays in the buy-back and associated DRC valuation process. It will also give the Trust time to identify and advise other members of the community who may be interested in becoming the next owners of the property.
What is the procedure for buying a plot from the Trust?
| Contact Trust Staff | ||
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| Complete HSCHT RHOG Plot Expression of Interest Form | ||
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| Trust staff will assess your eligibility for a plot and possibly a Rural Home Ownership Grant (RHOG) | ||
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| Grant assisted purchase | Non grant assisted purchase | |
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| Begin Stage 1 of application | Confirm your interest in writing | |
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| Up to 6 weeks | Offer sent to your Solicitor | |
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| Stage 1 granted | Legal proceedings | |
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| (Purchase land if possible) | Sale of land (minimum 6 weeks) | |
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| Begin Stage 2 of application | Begin to build your home, once planning and Building Warrant etc in place. | |
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| Around 4 months | ||
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| Stage 2 submitted to Trust | ||
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| Stage 2 submitted to Communities Scotland | ||
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| Grant approved (around 4 weeks) | ||
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| Purchase land (if not already) | ||
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| Around 4 weeks | ||
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| Begin to build your home. | ||