Equity Share for the Elderly

Equity share for the elderly is a scheme for the 60 plus age group, who are homeowners or have sufficient capital to purchase a 75% share in a sheltered bungalow or flat.

What are the benefits of this scheme?

  • It gives you security and peace of mind of the sheltered housing officer and alarm service
  • Enables you to move near to your family
  • Friendship and companionship of like people
  • Possible release of some equity, from the sale of your property

What if I do not have enough capital?

You may request a lower percentage share but this will only be granted if it is proven that a 75% share is unaffordable. Only mortgages and loans secured against your property will be taken into consideration when deciding on your financial circumstances. The lowest percentage share available is 30% with rent payable on the unsold portion up to 75%.

What are my responsibilities?

As an owner-occupier you would be responsible for all the internal repairs, maintenance and decoration. The Council would be responsible for the external maintenance with the costs recoupable via your quarterly service charge - more details in Leaseholder Information.

Internal repairs scheme

Visit our Equity Share for the Elderly Internal Repairs Scheme page for more details.

 

Background

This is a form of home purchase in which a share of the value of the property is bought whilst rent may be paid for the remaining depending on the percentage of the equity purchased.

This scheme is popular with older people who own their own homes and who are looking to move into sheltered housing in our District.


How do I qualify?

If you are a homeowner aged 60 or more, SCDC offers you the possibility of buying a property in a sheltered housing scheme, usually a bungalow or a ground floor flat.


How does the Equity Share Scheme work?

The Council sells a 75 per cent share of the property at current market value and retains the remaining 25 per cent (no rent is payable on this percentage). For particular financial circumstances, it is possible to purchase less than 75 per cent share and pay rent on the remaining percentage. The lowest percentage you can purchase is 30 per cent. The maximum is 75 per cent. If you wish to sell your equity share property at a later date, the Council will either purchase your share itself or will nominate a qualifying person to purchase it. In certain circumstances you may be permitted to sell the property on the open market provided the buyer satisfies the Council's qualifying criteria. Any outstanding costs such as a valuation fee, cost of repairs, outstanding rents, service charges and legal fees would need to be paid back to the Council on completion.


What are the costs?

  • A £250 non-returnable reservation fee is required before purchasing the property.
  • There is a service charge, covering the cost of the scheme manager's services, alarm, external repairs and support charge.
  • Ground rent
  • Structural insurance

All charges are subject to annual review.

There will be other outgoings such as electricity, water, house contents insurance, council tax, etc.


How can I apply?

You must be registered on the Housing Register with this Authority - see the Home-Link pages for further information on how to register.


What Happens Next?

Once you have registered on the Housing Register you will receive a Welcome Pack which will give you details on how to apply for a property. If you are successful in being allocated a property, the property sales officer will contact you for further information and organise a viewing with the housing services officer. This will be an opportunity to discuss any concerns or seek further information regarding the Equity Share process.

If you wish to proceed the property sales officer will ask for a valuation of the property. The time this takes will depend on the availability of keys e.g. the property may not yet have been surrendered.

Once the valuation has been received you will be sent a formal offer letter informing you of the price and other relevant details. If you have any queries at this stage you can contact the property sales officer.

Once the reservation fee of £250 has been paid the property will be held for you until the day of completion or enter into an occupation agreement.


Frequently Asked Questions

I wish to apply for Equity Share for the Elderly but am not currently on the Housing Register?
You need to complete a Housing Register Application form - see the Home-Link pages for further information on how to register.

I cannot afford to purchase 75% of the current market value. What can I do?
It is possible to purchase less that 75%. The lowest percentage this Authority will accept is 30%, but rent will have to be paid on the remaining percentage.