Treasury

Keep up to date with the latest on treasury issues.

Property Finance Working Group

The Property Finance Working Group (PFWG) was set up to create a space for collaboration, consistency and problem solving regarding all matters relating to security charging and associated valuations within the social housing sector

It is Co-Chaired by Keely Henderson, Head of Treasury at The Riverside Group, and Jasdeep Nahl, Solicitor at Anchor Hanover Group.

The PFWG meets twice annually in February and September and works in conjunction with other sector groups, such as The Legal Treasury Group and The Treasury Managers Group.

The current member organisations are Addleshaw Goddard, A&O Shearman, Bevan Brittan, Clarke Willmott, Clifford Chance, Devonshires, JLL, Savills, Trowers and Hamlins, and Winckworth Sherwood.

Recent discussion points for the group include:

• Insurance Mutuals.
• Section 106 standardisation.
• Certificate of Title updates.
• Search fees.

The PFWG’s work has led to several key achievements, including a:

• Standardised Certificate of Title for the housing sector, which has been universally adopted.
• Standard Mortgagee Exclusion Clause (MEC) within Section 106 agreements, to ensure registered providers can achieve the best possible funding value when securing loans against an asset.
• Local Authority MEC Tracker - a resource to show which local authorities have implemented an acceptable standard form of the MEC.

If you have any queries or issues relating to property charging transactions that would benefit from consideration by the PFWG, please email the Co-Chairs Keely Henderson and Jas Nahl.

Standardised Certificate of Title for the housing sector

To access private finance, housing association use social housing assets as security. The securitisation procedure in the sector is difficult for a whole variety of reasons which means the process takes up to 12 months when 6 months might be more reasonable and is needlessly expensive.

Part of this problem arises because of the multiplicity of Certificate of Titles in existence which varies between lenders and additionally varies dependent upon solicitors used. The differing requirements leads to uncertainty and additional time costs.

A housing association securitisation working party has developed a standardised social housing Certificate of Title format which has been universally adopted by borrowers, lenders, and their legal advisers across the sector. This is a positive move for the sector which will produce significant time and costs savings.

Mortgagee exclusion clauses – why are they important and what do you need to know?

The PFWG worked together to agree a consistent approach to the Mortgagee Exclusion Clause (MEC) within Section 106 agreements to ensure that registered providers can achieve the best possible funding value when securing loans against an asset. 

In her blog, Helga Chau, Corporate Counsel at A2Dominion Housing Group and Chair of the Property Finance Working Group, looks at mortgagee exclusion clauses in Section 106 agreements, and shares a new resource to help housing associations work with local authorities to implement them.

Example Standard Mortgagee Protection Clause

A Securitisation Working Group made up of various sector stakeholders has formulated an example mortgagee protection clause which should allow housing associations to obtain Market Value Subject to Tenancy when using s106 assets as loan security.

Mortgagee Protection Clause – GLA version

The Greater London Authority has issued a new version of the model mortgagee protection clause, which has been revised following discussions with housing associations and sector specialists.

Treasury consultants list

We've compiled a list of the treasury consultants used by the housing sector.