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The property you buy has to be mortgageable and we will require a


The property you buy has to be mortgageable and we will require a

More Info
                                                                                                                                                                                                           Home Plus Plan
                     This is because the alterations may affect the property value in either                                  What about my mortgage?
                     direction. Assuming the alteration does add value, the Council will                                      Your mortgage (if you have one) will remain as the ‘first charge’ on the
                     benefit from this unless consent is sought before the work is carried                                    deeds and at the Land Registry. The gap funding will be placed as a
                     out. The Council will not give consent if the alteration is likely to                                    ‘second charge’ or ‘ third charge’ if you already have two. This ordering
                     reduce the value. This does not apply to decorating or carrying out                                      of charges is the order in which the shares will be repaid on sale.
                     minor changes.
                                                                                                                                                                                                           The Home Plus Plan has been specially created for
                                                                                                                              What about the costs of buying?
                     What will the Council do with the money when it is repaid?                                               The reasonable costs of buying and selling should be met by your             home owners and tenants affected by the Housing
                     The Council will be running a Home Plus Plan fund and will re lend the                                   disturbance payment. This will include the cost of a Homebuyer’s             Market Renewal demolition proposals. It can help
                     money to another household who needs assistance in buying or repairing                                   survey.
                     a home. The Council will not make any profit from this scheme.                                                                                                                        you to bridge the gap to buy a new home.
                                                                                                                              For more information, see leaflet 4 on ‘Compensation and Disturbance’
                     Other conditions                                                                                         and leaflet 5 on ‘Buying and Selling a Property’.

                                                                                                                              Where can I get independent advice about this scheme?
                     What property can I purchase?                                                                            Independent Financial Advice is one of the steps we recommend you
                       The property you buy has to be mortgageable and we will require a

                                                                                                                              take in obtaining this share. We want you to be certain that it is the
                       Homebuyer’s survey to be carried out to assess this.                                                   most suitable product for you in your circumstances. The reasonable          You may be eligible to use Oldham Council’s Home Plus Plan to meet
                       It has to be within Oldham or Rochdale and be for sale with vacant                                     cost of this independent financial advice will be paid for by the Council.   the gap in value between your current home and your new home.

                     . possession.                                                                                            We can provide you with a list of Independent Financial Advisers who         It differs from a repayment mortgage or shared ownership in that you

                     .                                                                                                        are familiar with our Home Plus Plan. If you wish to discuss any of          do not need to make a regular payment of interest or rent. Instead we
                       It has to be residential and have no commercial use.

                                                                                                                              these issues further please speak to a Community Housing Officer.            ask for repayment from your equity when you next sell your home or
                       It has to be in a reasonable state of repair.                                                                                                                                       transfer the deeds.

                     . It has to be valued below £200,000
                       New homes must qualify for a National House Building
                       Council certificate
                                                                                                                              Discounted Homes
                                                                                                                              You may also find it useful to read the leaflet on Discounted Homes          How does it work?
                                                                                                                                                                                                                                                                                         Market value
                                                                                                                                                                                                                                                                                        for your home

                                                                                                                              that explains another way of buying a home at less than market value.
                     Can I ever buy back the Council’s equity by paying the gap                                               With this scheme, the discount is tied to the property so your choice of     If you need to borrow £15,000 to buy a property valued at £60,000,
We recommend         funding off early?                                                                                       where you can live is restricted.                                            gap funding of £15,000 will amount to 25% of the value of your new
that you discuss     You will be able to make full or part payments of the gap funding. It                                                                                                                 home.
this scheme with     will be necessary to obtain an independent valuation to determine the
an Independent                                                                                                                For more information, see leaflet 2 ‘Discounted Housing’
Financial Adviser.   value of the property at this time. There are costs involved in paying                                                                                                                This will be noted as a legal charge on the deeds to your home in the
                     back the funding which include the valuation fee, legal fees and                                                                                                                      same way a mortgage is noted.
                                                                                                                              Check that this mortgage will meet your needs if you                                                                                                      Compensation
                     administration charges. We will cover these costs for two payments of
                     £5,000 or more in a five year period.
                                                                                                                              want to sell your home or if your family want to inherit it.                 When you come to sell your home, or transfer the deeds, you will need
                                                                                                                              If in doubt, seek independent advice.                                        to repay Oldham Council 25% of the new value.
                     Any repayment will be converted into a percentage share and will be
                     registered as such.                                                                                                                                                                   If you were selling the property in the example above for £80,000, you
                                                                                                                              Community Housing Officers -                                                 will have to repay 25% of this to Oldham Council, which is £20,000.
                     Can the Council take the home I move into from me?
                     No, providing you comply with the conditions of the loan. As there are                                   Derker Team (0161) 652 8873                                                  What you repay depends on property values and how they rise or fall
                                                                                                                                                                                                                                                                                         Gap funding
                     no monthly repayments there can be no defaults. However, if used in                                                                                                                   over time. If values fall you would pay back less than you borrowed.
                                                                                                                              Flint Street, Derker, OLI 4EX                                                                                                                                of UP TO
                     conjunction with a traditional mortgage, your home would be at risk if                                                                                                                                                                                                £35,000
                     payments are not maintained.                                                                             Community Housing Officers -                                                 Example

                     Are there any other conditions attached to the Home Plus Plan?
                                                                                                                              Werneth/Freehold Team (0161) 911 4246                                        Mr and Mrs Smith currently own a home valued at:
                                                                                                                                                                                                           They take up gap funding of:
                     The Council is offering the Home Plus Plan to benefit owner occupiers                                    80 Tamworth Street, Werneth, OL9 7QY                                         to buy a house valued at:                                        £80,000
                     and residents of areas proposed for demolition. It is a requirement of                                                                                                                The gap funding is a quarter (25%) of the value of their new home.
                                                                                                                              Community Links Support Officers -
                     the gap funding that you remain an owner occupier. If you decide at any
                     point to move out and rent your property, the gap funding becomes                                        (0161) 331 2611/2632                                                         If in 15 years this house is valued at:                          £100,000
                                                                                                                                                                                                                                                                                       Free independent
                     repayable at that time even if you are not transferring the deeds.                                                                                                                    they will have to pay back a quarter of the value which will be: £25,000    financial advice
                                                                                                                                                                                                           Their share of the equity will also have grown and will now be: £75,000
                     Equally the Council wishes to protect its investment and will require                                                                                                                 This represents an APR of 1.5%
                     you to maintain building insurance on the property. We will ask for
                     evidence that our interest in the property has been noted by your
                                                                                                                                                                      It is likely that Mr and Mrs Smith would have been in a similar position
                     insurance company. This is normal practice with mortgages.
                                                                                                                                                                                                           financially if they had not needed to move.
                     We will also require that you maintain the property and we will include
                                                                                                                                                                                                           Is it Shared Ownership?
                     legal clauses to allow us to force the sale if the property falls into a
                                                                                                                                                                                                           No, it is not shared ownership. You will be the only registered owner         Moving and
                     poor state of repair.                                                                                                                                                                                                                                                 survey
                                                                                                                                                                                                           on the deeds. The Council will register a legal charge like a building
                                                                                                                                                                                                                                                                                          costs paid
                                                                                                                                                                                                           society or bank does with a repayment mortgage.

                                                                                                October 2006
                                                  Eligibility and Process                                                                           See leaflet 5 ‘Buying and Selling a Property’ for more information on
                                                                                                                                                    the next steps.

                                                                                                                                                                                                                                                      Mr Brown has agreed a valuation of £60,000 for his current home.
                                                  Who can use the Home Plus Plan?                                                                   What income will you take into account when you assess                                            He already has a mortgage for £15,000 and his mortgage lender says
                                                  Firstly, you must be affected by the Council’s Housing Market                                     whether I can have gap funding?                                                                   he could borrow a further £15,000 on the basis of
                                                  Renewal proposals for demolition to be able to apply for a                                        We will take into account the income of the main householder and                                  his income. This means he could go and look for houses valued
                                                  Home Plus Plan.                                                                                   partner if applicable.                                                        If you want to      up to £75,000.
A family of six from Oldham have moved
to their ‘dream home’ thanks to the                                                                                                                                                                                               work through

Home Plus Plan.                                   Secondly, you must have been occupying your home as an owner                                      If you already receive any means tested benefit you will be eligible for      another example
                                                                                                                                                                                                                                                      If he saw a house for £100,000 he could borrow a further £25,000
                                                  occupier or a tenant either;                                                                                                                                                    with a Community
Sonia Kershaw Whittle, husband Norman                                                                                                There          the share without any further questions about your income.                    Housing Officer,    as gap funding through the Home Plus Plan.
a warehouse supervisor and their chil-                on the date the Council formally agreed to offer this scheme in your         are trained                                                                                    give us a call

dren Ryan, 10, Lewis, four, Tyler, four              area and still be occupying it                                             staff on the        What about savings?                                                                               This £25,000 is 25% of the value of his new home. When he sells the
and 18-month-old Corey, have moved                                                                                           telephone numbers
from a terrace house which is ear-
                                                  or                                                                                                Savings will not be taken into account at all for applicants over 60 years                        house in the future he will need to repay 25% of the resale value.
                                                                                                                              on the back page
marked for demolition to a three bed-                 for 12 months before the date you apply.                                   who can guide      old. For people under 60 years old, it is expected that savings are put
room modern detached house on Redcar
Close in Stoneleigh Park.
                                                  In addition to that you must continuously occupy your home between
                                                  the relevant date and the date you apply for gap funding.
                                                                                                                                   you through
                                                                                                                                     your options
                                                                                                                                                    towards a new home before the gap funding is made. However, we
                                                                                                                                                    recognise that people keep money on one side for emergencies and
                                                                                                                                                                                                                                                      Paying it back
The family have received market value                                                                                                               some savings will therefore not be counted.
for their home, a home loss payment,              Thirdly, there is an application process and it will be necessary to                                                                                                                                When do I pay it back?
survey and moving costs and gap fund-             provide details about your income as you would if you were applying
ing. They will only pay back the percent-                                                                                                           For more information about what level of savings will be taken into                               You have to pay back the gap funding when you sell your house or
age of equity borrowed when they sell             for a mortgage.                                                                                   account, please speak to a Community Housing Officer.                                             transfer your deeds.
the new home in the future.                                                                                                                                                                                                       We recommend
                                                                                                                                                                                                                                  that you discuss
                                                  I am a tenant, are there any particular requirements for me?                                                                                                                                        The only exception to this is the transfer of deeds between partners
Sonia said: “When I first heard about the                                                                                                                                                                                         this scheme with
                                                  People who already own their own home will have equity or a                                                                                                                                         on separation or bereavement. You will not need to pay back the gap
demolition plans I was one of the people
saying I’d chain myself to the radiator           mortgage to bring to the new home. The Home Plus Plan will only be                                How much can I get?                                                           an Independent
                                                                                                                                                                                                                                  Financial Adviser   funding in these circumstances, but it will be repayable on future sale
rather than move out, but now with hind-          offered up to a maximum of half of the value of the new property. This
sight I think this is the best move ever to
                                                                                                                                                                                                                                                      or deed transfer.
our dream home.                                   means tenants must be able to provide cash or raise a mortgage for at                             How much can I get through the Home Plus Plan?
                                                  least the other half of the value of the new home.                                                You can access up to £35,000.                                                                     In certain circumstances close family members who have been living with
“We have managed to buy a beautiful
house with front and back gardens for                                                                                                                                                                                                                 the home owner for at least 12 months prior to the event which causes
the boys to play in, it’s closer to their         See the section on the next page on ‘How much can I get?’                                         Can I get a gap funding to top up a mortgage?                                                     the transfer to happen will not need to pay back the gap funding at the
school and it means I can stay close to my                                                                                                          An Independent Financial Advisor can advise you if you are able to take out                       time the deeds transfer. The person taking over the deeds must be the
mum and dad, which was a priority.
I think all of the new housing being
                                                  What is the process for taking out the Home Plus Plan?                                            a mortgage and which mortgages best suit your personal circumstances.                             occupier and not a third party. If this is of concern to you please discuss
planned for Derker will eventually raise                                                                                                            If you want to buy a home of greater value than this mortgage will allow,                         with a Community Housing Officer.
the prices of homes nearby. I don’t think                                                                                                           you can also use the Home Plus Plan.

we can lose out.”
                                                                                                                                                                                                                                                      In very exceptional circumstances where a housing need arises and the
                                                       Make an application with a Community Housing Officer who                                                                                                                                       only way of meeting this need is to move, the owner can apply to take
                                                       will assess your eligibility                                                                                                                                                                   the same amount of loan out for a new home that meets their need.

                                                                                                                                                                                                                                                      All gap funding will have to be repaid when the property
                                                                                                                                                                                                                                                      is sold, even if a transfer of ownership between partners (because of
                                              2        An Independent Financial Adviser will visit you to assess whether
                                                       this is the most suitable product for you.
                                                                                                                                                                                                                                                      separation or bereavement) has occurred at an earlier date.

                                                                                                                                                                                                                                                      What if I never sell my house?
                                                                                                                                                                                                                                                      Whoever inherits your house will have to repay the gap funding from
                                                                                                                                                                                                                                                      your estate.

                                              3        Complete a full application with West Pennine Housing Association,                                                                                                                             How much will I pay back?
                                                       who are acting on the Council’s behalf to arrange this.                                                                                                                                        You will pay back the same percentage of the value as you borrow
                                                       This will involve looking at savings, income and outgoings.                                                                                                                                    when you take out the gap funding.

                                                                                                                                                                                                                                                      What if values increase or decrease?

                                              4        Offer of gap funding will be made if you meet the criteria.
                                                                                                                                                                                                                                                      You will still pay back the same percentage of the equity as you
                                                                                                                                                                                                                                                      borrow. The Council recognises that this means it is possible your
                                                                                                                                                                                                                                                      repayment will be less than the amount you borrow and will take this
                                                                                                                                                                                                                                                      risk. Equally the Council wants you to clearly understand that if values
                                                                                                                                                                                                                                                      increase the Council will recover the full percentage of the equity.
                                              5        You can then start to look for a new home                                                                                                                                                      What if I want to add to the value of my home by carrying out
                                                                                                                                                                                                                                                      home improvements – will the Council benefit from my work?
                                                                                                                                                                                                                                                      If gap funding has been used, a home owner must ask for the Council’s
                                                                                                                                                                                                                                                      permission before carrying out any alterations or improvements.
                                                                                                                                                                                                                                                      The Council will ask for work proposals and plans before giving consent.

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