Did you know that you can get a grant or loan to renovate an empty home or a home in need of work in Ceredigion?
It’s something that unfortunately many people are unaware of – the fact that Ceredigion County Council provides a range of grants and loans to help turn empty or run-down houses into livable homes.
Recently The Telegraph newspaper quoted one of our founders, Helen Worrall, in their article on the subject. Now we’re trying to do our part to let people know what is available to help turn these properties into future homes.
Community Housing Scheme – Shared Equity
The Community Housing scheme is designed to help people get on the path to home ownership through a shared equity scheme.
This means that Ceredigion County Council provides a choice of loans and then has equity in your property. There are two options –
- Occupiable Properties – the Council can provide up to 20% of the purchase price subject to a maximum purchase of £300,000
- Empty Properties – the Council can provide up to 40% of the purchase price subject to a maximum purchase of £300,000
There are a number of benefits to this scheme, including a minimum 5% deposit needed by the purchaser and the fact that it is an interest free loan with no monthly repayments. In addition, owners on the scheme can ‘staircase up’ to higher share ownership of the property by buying 5% blocks of the Council’s equity as and when they can.
For empty properties, the equity share scheme can be looked at along with the home improvement loan and National Empty Homes Grant to develop the property back into use, as long as the criteria for each is met.
As part of the scheme you need to take note of the following –
- Mortgage Repayments – if you take a mortgage for the purchase then normal monthly repayments will be due. However, monthly payments will be less because of the Council’s equity share which will reduce the mortgage required.
- Any mortgage taken to purchase the property must be taken on a repayment basis. Interest only mortgages are not allowed.
- Repayment of the Council loan – the amount to be repaid will be the cash amount loaned or the equivalent percentage of value of the property at the time of repayment, whichever is higher. As an example, if you borrow £50,000 from the Council and at the time of the loan repayment the property is worth 20% more than when you made the purchase you must pay the Council £60,000.
- Repayment of the loan is required at the end of the mortgage period, or within 25 years, whichever is first.
- The Council will maintain a share in your property until the loan is repaid.
Find out all about this scheme here.
Houses into Homes – Empty Property Loans
Loans of up to £35,000 to carry out renovations and repairs are available for empty property owners in the region. This is designed to enable empty, sub-standard housing to be overhauled ready for occupation. It can be used to rectify disrepair or hazards including –
- Enhancing fire safety or security
- Repairs to roofs, walls and floors
- Replacing windows, doors, kitchens or bathrooms
- Treating damp
- Improving energy efficiency, including heating
- Converting the property into separate living units
Various other works may also be covered and a Local Authority Officer will inspect the property to assess what is eligible.
To qualify for the loan, the money must be used for bringing a property back into use for rent or for sale. It is not available for owners who want to occupy the property – if this is you then read more about the Home Improvement Loans available later in this blog.
The loans are available to individuals, charities and businesses, with the maximum loan to value being 80%. In addition, the property must have been empty for a minimum of six months before the application date.
You can apply for up to £35,000 per habitable unit, with the final loan amount determined by the cost of the works – you’ll need to submit quotes as part of your application. The maximum you can apply for is £250,000 – for example if you were converting a property into individual flats.
The loans are interest free, as long as there is no default – you should read more about the terms if repayment is not met or if there is a breach of the conditions – and there is an administration fee for the costs of processing the application.
- Loan up to £10,000 – administration fee of £1,283.00
- Loan £10,001 – £25,000 – administration fee of £1,927.00
- Loan over £25,000 – administration fee of £2,823.00
Landlord fees are waived if the property is rented at the Local Housing Allowance rate for the duration of the loan period, and the landlord rents to tenants from the Council’s Affordable Housing Register or a tenant who would be eligible to be on this Register.
Find out more about the Empty Property Loans here.
National Empty Homes Grant – Ceredigion
As part of the Welsh Government’s National Empty Homes Grant Scheme, Ceredigion County Council is providing support to bring empty homes back into use. The aim is to help re-generate communities across the county and add to the housing available for individuals.
Under this programme grants of up to £25,000 are available for homeowners or prospective homeowners to renovate empty houses, making them safe to live in and improving the energy efficiency they deliver.
To qualify for the grant the empty home you intend to renovate must be located within the Ceredigion local authority area and must be currently registered with the authority’s Council Tax Department as vacant for at least the last 12 months.
The applicant for the grant must be the current owner or the prospective owner, and they must intend to occupy the property as their main and only residence for a minimum of five years.
In addition, if you’re thinking of applying for the grant you must meet the Local Connection criteria in Ceredigion – you can read more about that here.
Find out more about the programme, check eligibility and read the FAQ on the National Empty Homes Grant website.
Home Improvement Loans
Another loan option for property owners is that you can apply for a loan of up to £35,000 to carry out repairs, renovations or upgrades to your home. Any works funded by the loan must help make the property warm, safe or secure and can include works to rectify –
- Substandard Housing (Cat 1 / Cat 2 Hazards / Welsh Housing Quality Standard)
- Repair, Fire Safety or Security
- Empty Homes (Renovation / Conversion)
- Energy Efficiency (ECO top up)
- Group Repair Schemes / Envelope Schemes
- Private Rented Sector (Access Schemes)
- Aids and adaptations for older or disabled people or DFG top up
Other works can also be covered if they contribute to making the property warm, safe or secure. A Local Authority Officer will inspect the property to determine eligible work.
To qualify for this loan you need to be the owner of substandard housing, so you can be the owner occupier, a landlord, a developer or a charity, however the Local Authority will give priority to homeowners and landlords.
Landlords offering the property to let at affordable rent rates, or who offer the housing for social housing will be given priority over landlords letting on the open market.
You can apply for a loan of between £1000 and £35,000 per habitable unit, with the final amount determined according to the cost of the works. You’ll need to submit quotes for the works in your application. The maximum loan application is £150,000.
Similar to the previously discussed Empty Property Loans, the loans are interest free providing there is no default. There is also a one off administration fee for the provision of the loan as follows –
Owner Occupiers
- Loan up to £5000 – administration fee of £724.00
- Loan £5001 to £25,000 – administration fee of £1,113.00
Subject to available funding, owner occupiers may be able to apply for a Loan Application Grant up to a maximum of £4500, to pay for the fees.
Landlords
- Loan up to £10,000 – administration fee of £1,283.00
- Loan £10,001 – £25,000 – administration fee of £1,927.00
- Loan over £25,000 – administration fee of £2,823.00
If the property is rented at the Local Housing Allowance rate for the duration of the loan period and it’s rented to tenants from the Council’s Affordable Housing Register (or a tenant eligible to be on this register) these landlord fees will be waived.
For more information on the Home Improvement Loans from Ceredigion County Council click here.
We hope you’ve found this blog informative – please use the links provided to find out more about the full requirements for each grant or loan.