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Low cost loans to bring Empty Homes back into use as affordable housing

The Affordable Housing Loans Scheme is available to assist owners of empty properties to bring them back into habitable use through funding, project management and private sector leasing.

How does the scheme work?

Owners would only need to sign up for the scheme and a registered provider (formerly known as housing association) working in partnership with Aylesbury Vale District Council will do the rest.

The registered provider will assess whether the property is suitable for the scheme and the rent achievable, and then undertake the necessary renovation works to bring it up to the appropriate standard. The cost of the works is then funded by a secured low interest rate loan provided by the council.

On completion, the property would be let as affordable housing, the loan repaid monthly from the rental income and the owner will receive the net rent. At the end of the private sector leasing agreement, the property will be returned to the owner in good order.

Who is eligible?

The affordable housing loans scheme is available to assist owners of empty properties to bring them back into habitable use through funding, project management and private sector leasing.

What interest rate is charged on the loan?

Interest on the loan will be charged at the Bank of England base rate, subject to a minimum rate of 3.5% and a maximum of 7.0% (please contact us for a quotation). 

Are there any other charges in connection with the loan?

There will be a fee for the registration of the legal charge and loan documentation. The fee will be added to the loan and is currently £80 for loans up to £100,000. 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 in part, at any time without penalty. When the loan is completely repaid there is a fixed fee of £50 for cancellation of our registered charge. 

Does the Registered Provider make any charges?

The registered provider  charges a fee for commissioning and supervising the works and an annual charge for the management, maintenance and insurance of the property. An illustration of their costs will be provided at an early stage. 

Why introduce a Scheme like this?

The council is actively working to reduce the number of empty homes and to support owners wishing to bring their properties back into use.

The scheme also benefits owners as no financial input is required from them, the renovations are carried out to a high standard, and whilst the property is let  they receive the net rent and are no longer responsible for council tax. Then, at the end of the agreement, the loan will have been repaid and the property returned in good condition or, if the owner wishes, it can continue to be let.

Date Updated: 24/06/13

Contact information

Contact:

Empty Homes Officer

Telephone:

01296 585605

Email:

envhealth@aylesburyvaledc.gov.uk