Empty Property Loan

• Applicants must own the property and be able to prove ownership according to our procedures
• Either a valid full passport or details of the applicant’s national insurance number must be given as proof of identity
• The property must be within the boundaries of Test Valley
• If the applicant has a mortgage then he/she must not be in arrears. A current mortgage statement must be provided, Wewill have the discretion to waive this condition
• The property must have been vacant for a period of at least 12 months
• On completion of the agreed work the property must normally be let to a tenant nominated by us.
• A maximum of one loan will be issued per property every 20 years from the date of completion and while in the same ownership.

Buildings that are occupied as dwellings are eligible for funding, with the following exclusions:

• Those built or provided through conversion less than 10 years ago
• Those in shared ownership with a registered social landlord
• Leasehold properties that have less than 55 years on their lease
• Any that are subject to a closing order or demolition order
• Any that are subject to any compulsory purchase/leasing order
• Those where a legal notice (relating to the condition of the property) has been served in the five years prior to the application for example, an improvement notice under the housing Act 2004 or a section 80 notice under the environmental protection Act 1990, and where the requirements of the notice were not completed to our satisfaction. 

The loan will be available to meet 50% of the cost of the eligible work subject to the following maximum amounts: 

• £20,000 (including vat) for a home where council nomination rights are for 5 years

The costs of specified approved fees can also be considered for an additional 50% loan. A maximum of 15% of the eligible works can be paid for the services of an architect, a surveyor or a combination of both.

• The loan is repayable at the time that the property is sold or ownership transferred or if the terms and conditions are not met
• The property must remain in the ownership of the loan applicant(s) for a period of 5 years depending on the type of certificate given following completion of the work. During the whole of this period each unit of accommodation must normally be let to a tenant nominated by us at the local reference rate
• Repayment may be waived if our nomination rights are assigned to the new vendor
• The property must be maintained in a good state of repair once the works are completed
• Where conditions are not met the loan together with compound interest must be repaid in full by the owner.

The work must bring the property back to a condition that meets our decent home standard and suitable for people to live in it.

We will determine what work is eligible following an inspection of the property and will consider:

• Work that will restore a property to a condition to meet our standard of fitness and reasonable repair
• Work to restore a house in substantial disrepair to a condition of reasonable repair
• Work that will providing a satisfactory internal arrangement, for example making sure that toilets are not directly off kitchens
• Renovation of properties/flats above shops for example to bring them back to a condition suitable for occupation
• To install central heating where none is present
• Energy efficiency work to insulate lofts, hot water tanks, pipes and cavity walls, and other energy efficiency works.

The applicant must agree to pay the difference between the builder’s costs for the total of the eligible work and the amount of loan before the scheme will proceed.
Work covered by the applicant’s own building insurance will not be covered by this scheme.

Where appropriate the loan will be secured against the property and lodged with his majesty’s land registry or the land charges register, whichever is applicable.

Subject to our discretion all formal offers of financial assistance will be valid for 6 months and all approved applications will be valid for 12 months.

Other terms and conditions are included in the Appendix to the Private Sector Housing policy.

• The applicant will be responsible for ensuring the quality of the completed work and compliance with building and planning regulations. In the event of a dispute we retain the right to make a payment to the builder where they are satisfied with the quality of the work.

We will only consider payment towards agreed unforeseen work where the total cost of the work does not exceed the loan maximum. The loan will be considered on the same 50% basis to meet the eligible cost as the original approval. The applicant must meet the cost of any unforeseen work above this sum.

• The applicant must normally agree to the payment being made directly to the builder. An exception to this is where the applicant has already paid the builder and payment is reimbursing the applicant
• Up to 90% of the loan may be paid by us before full completion of work, based on actual work carried out. No upfront payments can be made.
• We will calculate the amount of loan to be paid.