I have the pleasure in announcing that we have secured funding of around £2m to bring back into use empty properties. We are seeking councils and individuals to work with us to spend the money on appropriate properties.
Key details are listed below:
- £2m from a social bank to bring back into use empty properties for the use of social housing.
- Typical nomination terms to the council will be 5-10 years or something bespoke but a minimum of 5 years.
- The funding is specific to London Authorities at the moment.
- The funding allows us to help administer empty properties stuck in probate or any other legal issues.
- The funding can also be used to fund the refurbishment of derelict buildings (care homes, nursing homes, old schools, ware house, office etc.) that can be used for social housing including land with development potential.
- This is first tranche of funding that may develop into a larger fund based on how quickly I can use the money.
Please note that we are registered with the HCA as a provider of social housing and work with the GLA where ever possible in terms of producing more social housing.
We are also registered with the FCA for the purpose of consumer buy-to-let activities, which is the new regulation introduced last year for empty property owners that become “accidental landlords” through the refurbishment and subsequent let of their property.
We help owners of empty properties by packaging a group of services that:
- Cover the cost of estate administration as part of overall loan borrowing through solicitors that work with us;
- Lend the required amount of money needed in conjunction with the council grant or lend the full amount needed for works completion;
- Appoint contractors from our panel, overseen by project manager to completion;
- Give finished property to council for social housing
The Loan borrowed for this service gets repaid by the rental income generated from the tenancy with the council. The length of the term is determined by the loan amount, the rent level and whether or not the owner is seeking to keep some rent as his own income or dedicating 100% of the rent to repay the loan.
I am currently seeking from councils or their associated partners nominations of properties that we can spend the money on. I would urge the council officers to contact me in the first instance to discuss the properties or ask me any further questions.
I am happy to discuss the specific funding details in terms of minimum and maximum loan amounts, interest rates and arrangement fees individually as they will vary from case to case with respect to end property being delivered.