A Property before renovation
Flexible loans to bring empty properties back into habitable use
How does the scheme work?
Empty home loans may be regarded as 5 year, flexible, bridging finance secured by a first charge or, in some circumstances, a second charge on the property .
After the works have been completed you may let the property or use it as your own residence. During the term of the loan you can choose to make regular monthly payments, occasional monthly payments, or no payments at all. Furthermore, you are free to vary the arrangement at any time.
The loan plus outstanding interest, must be repaid on the fifth anniversary of making the loan, or when the property is sold, whichever occurs first. The borrower will normally need to remortgage, or sell, the property to repay the loan.
Interest will be charged at 2% above the Bank of England base rate, subject to minimum and maximum rates (please contact us for a quotation). Your account will also be debited with an annual charge of £15 to cover the cost of loan administration and statements.
The loan may be repaid, in whole or part, at any time without penalty. When the loan is completely repaid, there is a flat fee of £50.00 for cancellation of our registration charge.
Who is eligible?
Empty Home Loans are available to owners of empty properties.
Applications are processed on a non status basis, although a credit check is carried out and a very poor credit history may result in the application being declined.
Bankruptcy will automatically prevent us from making the loan.
Are there any setting up costs?
There will be a fee for loan documentation and registration of the legal charge. The fee will be added to the loan and is currently £80.00 for loans up to £100,000. In certain circumstances the council may need to obtain a valuation of the property to confirm the equity is enough to cover the loan. This is unlikely to be needed in the majority of cases.
If you decide to engage a solicitor to act for you , they will almost certainly charge for their services. Any fees incurred may, if you wish, be added to the loan.
Date Updated: 07/11/11
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