Regulated home purchase and equity release schemes
Published by a LexisNexis Property expert
Practice notesRegulated home purchase and equity release schemes
Published by a LexisNexis Property expert
Practice notes
This Practice Note provides an overview of the structure of Regulated home purchase plans (including Islamic finance), Equity release schemes and regulated sale and leaseback agreements.
For guidance on the regulation of home finance transactions, see Practice Note: Regulated mortgage contracts and home finance transactions defined.
Regulated home purchase plans
A regulated home purchase plan (HPP) is similar to a mortgage and provides home buyers with finances compatible with Islamic law by avoiding the collection and payment of interest. HPPs are regulated by the Financial Conduct Authority (FCA).
Under an HPP:
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the provider buys a qualifying interest in land or an undivided share of a qualifying interest in land which is held on trust for the provider and the home purchaser
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the home purchaser agrees to buy the property from the provider at the end of a specified period
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the home purchaser is entitled to live in the property during that period
Islamic finance
There are three forms of Islamic finance product. HM Land Registry has produced guidance on registering
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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Equity definition
What does Equity mean?
Capital that is used to finance companies in the form of ordinary share capital as opposed to debt finance. The term is also sometimes used to describe preference shares or subordinated loan capital contributed by equity investors (commonly known as quasi-equity) to distinguish it from third party debt.
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