Empty property financial assistance information guide
Contents
- Arun District Council’s empty property assistance programme policy
- Empty property non-repayable loans
- Interest free loans
- General advice
- Applying for empty property assistance
1. Arun District Council’s empty property assistance programme policy
1.1 The assistance programme is designed to help owners of empty homes bring their properties back into occupied use. On completion of the works the property must meet a decent home standard. The programme will provide financial assistance to those owners who can not access private funding, and without financial help the property will remain empty.
2. Empty property non-repayable loans
2.1 Works covered under the loan
Works to put a property into reasonable repair and to achieve the Decent Homes Standard are covered. This includes virtually all types of repair including internal decoration, flooring and gas, electric (where applicable) and energy performance certificates.
2.2 Eligible persons
Applicants must own the property and it must be empty for 24 months (a lesser period will be considered but not six months or below). If the property is leasehold there must be at least eighty years left on the lease.
2.3 Costs of the loan
The council will charge 10% administration costs (of the loan amount), this can be added to the loan or paid in advance. For example £5,000 loan will attract £500 administration costs.
2.4 Schedule of works
An officer from the private sector housing team will inspect the property and carry out an assessment to see if the property is suitable for the scheme. If it is, we will prepare a list of work that will need to be undertaken to ensure that on completion of the works the property will be in a good lettable condition (i.e. weather tight, warm with modern facilities). Once the loan has been approved we would provide you with a schedule of works for you to get a minimum of two estimates for the work.
2.5 Nomination rights
In exchange for a loan your property would be managed by the councils chosen agent (a management fee will apply). The council would also nominate tenants to the property. All tenants are vetted and checked, as well as supported to apply for any benefits they are entitled to. The length of the nomination rights/ management scheme is up to five years.
2.6 Rent levels
As part of the nomination rights we would expect you to rent your property at Local Housing Allowance level or at a rate affordable for the tenant.
3. Interest free loans
3.1 Works covered under the loan
Works to put a property into reasonable repair and to achieve the Decent Homes Standard. This includes virtually all types of repair including internal decoration, flooring, gas, electric (where applicable) and energy performance certificates.
3.2 Eligible persons
Applicants must own the property and it must be empty for 24 months (a lesser period will be considered but not six months or below). If the property is leasehold there must be at least eighty years left on the lease.
3.3 Credit checking
A credit check will be undertaken. A poor credit history may mean we are not able to offer you a loan.
3.4 Repayments
The loan is registered as a first (or if not possible a second) charge at Land Registry. The cost of this is included in the 10% administration charge added to the loan.
3.5 Maximum limit of financial assistance
Maximum assistance is £10,000. If the cost of the works is greater than the loan the owner is responsible for the shortfall in funds.
3.6 Schedule of works
An officer from the private sector housing team will inspect the property and carry out an assessment, which will determine if the property is eligible for the scheme. If a loan can be offered, a schedule of necessary works will be prepared. This will be sent to you after your application and proof of ownership has been approved. You will need to obtain a minimum of two estimates based on the schedule of works. Gas safety certificates, electric certificates and energy performance certificates (where applicable) will need to be obtained as part of the works.
3.7 Nomination rights
In exchange for a loan your property would be managed by the councils chosen agent (a management fee will apply). The council would also nominate tenants to the property. All tenants are vetted and checked, as well as supported to apply for any benefits they are entitled to. The length of the nomination rights/ management scheme is up to five years.
3.9 Rent levels
As part of the nomination rights we would expect you to rent your property at Local Housing Allowance level or at a rate affordable for the tenant.
4. General advice
4.1 Estimates
You should obtain at least two estimates, giving an itemised breakdown of costs based on the schedule of works we provide. We will usually accept the lowest of the estimates. This contractor must be the contractor you employ to carry out the works, once the whole application has been approved. If you
encounter difficulties in obtaining estimates, you should visit the Trading Standards Approved site Buy With Confidence – Trading Standards Approved.
4.2 Invoices for loans
When claiming a payment an invoice is required. The council may not issue payments if you submit a different contractor’s invoice from the one that was approved.
4.3 Doing the work yourself
If you intend to carry out any part of the work yourself, you should tell the council at the time of your application. The amount of financial assistance for DIY works will cover materials only. You should estimate quantities and materials very carefully. A fully detailed priced specification (based on the schedule of works and provided on the councils form) is needed, so that the correct costs can be calculated.
4.4 Specialist quotations
If you are installing a damp proof course or carrying out treatment for dry-rot, then the council will require that the work is carried out by a specialist contractor who will issue a reasonable guarantee for the treatment work to be carried out. This guarantee must be backed by insurance or bond cover.
4.5 Plans and building regulations consent
Rewiring, replacement windows and most major structural alterations and adaptations will come under building regulation control. Some works may be exempt if the works are carried out through an Approved Installer Scheme.
4.6 Value Added Tax
VAT may be included in the estimated expense for loan purposes provided your contractor itemises the work subject to VAT and is VAT registered. The contractors VAT number must be on the estimate they provide. Properties that have been empty over 2 years may be eligible to a reduced rate of VAT (5%) for some works. Further details on this can be found on the Customs and Excise website, look for VAT and building and construction or you can request ‘Customs and Excise Guidance on VAT for empty properties’ from the empty property officer.
4.7 Conditions attached to empty property assistance
Empty property assistance is repayable in full if the property is sold or if there is a change in ownership before the end of the nomination period.
4.8 Appeals against a refusal
Appeals against any decision not to offer empty property assistance will be determined by the relevant head of service. Initially the appeal should be made in writing to the principal environmental health officer/manager of the private sector housing team who will review and refer the matter on if necessary.
4.9 Mortgaged properties
If you have a mortgage on your empty home, your mortgage company will have to agree to a second charge being placed on the property title. They will also have to agree to the property being rented out. You will need to check the terms and conditions of your mortgage to see if you are able to do this.
General Data Protection Regulations (GDPR) (EU) 2016/679
Arun District Council collects information about you in order to provide you with the service regarding empty property assistance loans. Please see https://www.arun.gov.uk/privacy-policy for further details
Applying for empty property assistance
- You contact us with an initial enquiry by emailing empty.homes@arun.gov.uk
- An application pack will be sent out to you by email within 10 working days.
- We will check the land registry for proof of ownership. If applicable we will also need evidence of the number of years left on your lease.
- Once a completed application form has been received and validated you will be notified within 10 working days. If the application is incomplete you will also be notified and have a further 10 working days to provide the necessary documentation.
- Once validated an appointment will be made to view your property. We will need to view all rooms and any garages and sheds you wish to be included in the rental.
- Following our visit, we will provide you with a schedule of works (and guidance notes) that need to be completed to bring the property up to a let-able standard.
- You will also be sent a copy of the homeowners agreement that you will be required to sign and execute in order to secure the financial assistance with Land Registry. This document binds you and the council for an agreed number of years, once the property is brought up to a let-able standard.
- You will need to arrange a minimum of two itemised estimates for the work. In some cases we can help to arrange estimates. Buy With Confidence – Trading Standards Approved is a good starting point for recommended contractors.
- Once itemised estimates have been obtained for the schedule of works you were provided with and these have been given to Arun District Council for review, the cheapest of the two contractor quotes will be appointed. The empty property assistance will either cover the whole of the costs or you will be responsible to cover the shortfall.
- There are conditions attached to most forms of financial assistance. You must carefully consider the commitment for the property concerned. You will be expected to re-pay the assistance in full if you sell the property during the partnership agreement period.
- It is important you do not commence any of the works that you require under the financial assistance until you have received the formal ‘Notice of Approval’ any works carried out prior to this will not be covered by the financial assistance and may delay works starting.
- Once you have your ‘Notice Approval’ you can start the works. Please let us know when you expect this to happen and also provide us with an expected end date.
- Once the works are completed an officer will come and inspect the property against the schedule of works provided. We are there to ensure value for money, for publicly funded works, rather than ensure all elements have been completed to your satisfaction. We want the property to have met the decent homes standard so that it can be occupied.
- When the officer is satisfied the works are completed you will be required to submit an invoice from the approved contractor. You will also be required (if you haven’t already done so) to provide a copy of the legal charge registered with HM Land Registry in favour of Arun District Council for the funding agreed.
- Once the documentation provided has been reviewed and deemed satisfactory you will be notified, and payment will be released shortly afterwards. The councils chosen agent will contact you directly to arrange the letting of your property.
We can offer support and help to owners throughout this process. Please contact the empty properties officer on 01903 737788 or empty.homes@arun.gov.uk if you want to talk through any concerns or queries. Alternatively, you can seek independent legal advice.