Flexible tenure

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					Flexible tenure
This leaflet explains how shared owners may apply for flexible tenure,
also known as downward staircasing.

What is flexible tenure?
Flexible tenure is the re-purchase of some or all of a
resident’s share in their home.

The scheme is only available to shared owners who are
in severe financial difficulty who have exhausted all other
options and require this assessment as a last resort.

If you are facing financial difficulty, we strongly recommend
you seek professional advice as soon as possible, before
your situation worsens and your home is put at risk.

Who is eligible for flexible tenure?
You will need to be a Moat shared owner, currently owning
less than 100% of the property. You must be paying rent on
the unsold equity in the property. The term ‘rent’ excludes
ground rent and service charges.

Flexible tenure may be offered to those who are currently
in, or expect to face financial difficulties.

Flexible tenure is not available to pay off credit cards,
secured debt or any other debt and may only be used to
pay off some or the whole of a mortgage.

Shared owners do not have the given right or entitlement
to flexible tenure. Any offer of flexible tenure is purely at
the discretion of Moat.

How it works                                                        Step two - We will review your case once we have
Step one - You will need to send in the following                   received all of the above information. Our assessment
documentation:                                                      will consider your ability to meet all of your financial
                                                                    obligations after flexible tenure completes. We will also
•   A copy of your most recent mortgage redemption                  look at ways to maximise your income through the take
    statement                                                       up of welfare benefits.

•   Two written market appraisal reports for your property          Step three - Once we have assessed your application we
    which can be obtained from estate agents                        will contact you in writing with our decision.

•   Full details (in writing) of your current financial situation   Step four - We will need to obtain a property valuation
    explaining why you wish to be considered for flexible           from an independent RICS qualified surveyor. You will be
    tenure.Your letter should provide evidence that other           liable for the cost of this valuation report, which is currently
    options, such as loan re-scheduling, have been                  £150 + VAT (£180).
    exhausted. This Information should be based upon                Step five - On receipt of the valuation report we will liaise
    advice from an independent debt-counselling agency              with your lender and our solicitors to progress full or partial
    and should include consideration of your eligibility for        repayment of your outstanding mortgage.
    Housing Benefit
                                                                    Step six - We will advise you of your revised rental
•   Our financial commitments assessment form.                      payments and, in the case of Moat purchasing back all
                                                                    of your shares, we will issue you with an assured tenancy
                                                                    agreement.
Frequently asked questions
Q. I am in financial difficulty, what should I do?
A. If you are in financial difficulty strongly recommend
you seek professional advice as soon as possible, before
your situation worsens and your home is put at risk. You
should alert your mortgage lender and seek advice from
an independent debt counselling agency, e.g. the Citizens
Advice Bureau. Additionally you may wish to contact Moat
for further advice on benefits that you may be eligible for.


Q. Will you help to pay off my credit card and personal
loan debt?
A. No, flexible tenure can only be used to pay off your
mortgage. It is not available for debt consolidation.


Q. Will you pay off my entire mortgage?
A. It depends on the value of your property and the
share of your property that you own. The maximum share
that Moat can buy back is limited to the value of your
outstanding mortgage.


Q. How do you work out my eligibility?
A. Flexible tenure can only take place if the outcome is
financially sustainable. Once we have received all your
information, we will work out how much of your mortgage
could be paid (if any) whilst leaving you with a reasonable
income to live on.




   Contact us
   The flexible tenure initiative is being administered by Moat’s Home Ownership team. If you have any questions
   regarding Home Ownership please call 0845 359 6161 and ask to speak to the Home Ownership team.
   Alternatively you can email MHOadmin@moat.co.uk

   Your home is at risk if you do not keep up rent and mortgage repayments or payments on other loans secured on it.

   Please note that the value of properties can go down as well as up.

   This information is available in large text, on audio tape, or electronic format. We offer Language Line services to
   people whose first language is not English. Please call us if you require these services.

   Moat Mariner House Galleon Boulevard Dartford Kent DA2 6QE www.moat.co.uk
   Moat Homes Limited, a chariable housing associations. January 2011

				
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