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Leaseholders
An important aspect of the work that Houseproud facilitates is assistance to leaseholders. This will be of particular interest to local authorities who remain the freeholder of mixed tenure properties where tenants exercised their “right to buy” in the 1980s and where now major refurbishment works are necessary. The scheme works in exactly the same way as for homeowners, the only differences being that the conditions for Houseproud loans for leaseholder major repair bills are: The lease should not be too restrictive. Failure to comply with any term of the lease could result in the lease being terminated and reverting to the freeholder- so the lender’s security would be lost. The lease should have 40 years remaining at the end of the mortgage term. Otherwise the property may be difficult to sell and provide inadequate security. The ground rent should not be in arrears and all terms of the lease should have been followed. The works proposed to the property should have been agreed by the freeholder (or landlord). The leasehold property must be the applicants’ main residence.
Summary of advantages The cost of the works can be quite small compared to the value of the leasehold interest. Guarantee of no repossession and no negative equity. Regulated lenders who understand the needs of borrowers, and allow the borrower flexibility to cope with their changing circumstances. Loans from £3000 at competitive interest rates No charge for most valuations Overseeing of works by the local authority to completion. |
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© 2008 Home Improvement Trust all rights reserved. |
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