Festival Property Purchase

The applicant must be able to finance a 75% share in the property, either through a lump sum and/or through a mortgage. The remaining 25% is provided by an RSL in the form of an equity loan. The loan has to be repaid and is only available for 10 years or until the property is sold, whichever is sooner. At this time 25% of the current property price will be repayable to Festival Housing Group. This option does not attract any rent.

Criteria:

• The applicant must be registered with Home Point Herefordshire.
• The applicant must have the ability to finance a share in the property, either through a mortgage and/or through a lump sum (equity in existing property).
• The applicant must be unable to afford to purchase the property outright without assistance.

Conditions:

• Maximum purchase price limits apply, dependent on the size of the property.
• The applicant will be advised of the relevant price limits at the time of acceptance.

Other Information:

• The applicant has the option to purchase further shares in the property from the RSL in the future. The shares must be purchased at the market value at that time.
• Permitted to purchase property size needed, plus one additional bedroom space.
• On completion of the scheme, the applicant is still considered an owner-occupier in terms of maintenance and management of the property. However, major works to the property will require written consent from the RSL.
• On death of the shared owner, the property can either be passed on by way of an inheritance, or sold (details of sale conditions explained below).

Sale of LCHO property assisted by the scheme:

• The RSL must be notified of the intention to sell.
• They will then advertise the property through Home Point Herefordshire.
• If the are unsuccessful in finding a buyer for the shares, the property can then be advertised on the open market through an estate agent.
• Alternatively, RSL shares can be purchased at market value and the property sold as whole.

How to apply for Festival Property Purchase:

The applicant will need to provide the following information contained within the information pack:

• Completed application forms.
• Completed financial statement for existing income and expenditure.
• Written confirmation of the maximum mortgage that can be secured (without any assistance) and details of the proposed monthly repayments.
• Confirmation of savings or lump sum. A solicitors letter will be required if the sum is received following a relationship breakdown, or the sale of a former home.
• Bank statements for 3 months immediately prior to the application for all savings and current accounts.
• Wage slips (last 4 if paid weekly or fortnightly, last 3 if paid monthly or every 4 week period).

For further information, please contact Festival Housing Group, Partnership House, Grovewood Road, Malvern Link, Worcestershire, WR14 1GD.

Telephone No: 01684 579 435

email: klaydon@festivalhousing.co.uk

or request an information pack from The Herefordshire Council's Strategic Housing Services, Housing Needs & Development Team - Telephone No. (01432) 260269.