3 . Loan conditions
Before the SMI loans can be made, you (and your partner, if you have one) must sign and return a loan agreement. The DWP must provide you with the terms and conditions of the agreement and an explanation of the legal charge (if one is going to be set up) in the six months before you accept the offer.
The legal charge – To ensure that the SMI loans
are recoverable from you, the DWP can place a
‘legal charge’ (or in Scotland, a
‘standard security’) on your property. This will give the DWP the right to recover the total of any SMI loans made to you, plus interest (see
7 below ), from any equity available once your home has been sold (or the ownership otherwise transferred) – see
8 below .
, regs 4-6