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
It offers you the opportunity to live on a SCDC run sheltered scheme that you would not otherwise be eligible for due to being or having been a homeowner.

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 leasehold home ownership where you purchase the property at 75% of the current market value*. This scheme is offered to applicants eligible for sheltered housing and who do or have owned their own home. It offers a way for you to move into a Council sheltered housing scheme that, being a homeowner, you would not otherwise be eligible for.

*Exceptions to the rule:

Kay Hitch Way, Histon - offered at a 99% share, with rent payable up to 99% if a lower percentage is purchased.

Cox's Close, Stapleford - offered at a 70% share with no rent payable if 70% purchased, and rent payable up to 70% if a lower percentage purchased.

How do I qualify?

If you are or have been a homeowner aged 60 or more and have been offered a sheltered property from SCDC you will be expected to participate in the Equity Sharing Scheme.

How does the Equity Share Scheme work?

The Council sells the property to you at 75% of the current market value (see exceptions to the rule above) to keep the purchase affordable. No rent is payable if 75% is purchased. For particular financial circumstances, it is possible to purchase less than 75% share and pay rent on the remaining percentage. The lowest percentage you can purchase is 30%, the maximum is 75%. If you wish to sell your equity share property at a later date, you must assign the lease to a qualifying person. The Council will have 28 days to nominate a purchaser from its housing register for you to assign the lease to. If the Council is unable to nominate someone to you then you must find and nominate your own purchaser to the Council. Full details of the assignment process will be found in your lease. An assignment of lease operates in much the same way as an open market house purchase with you and the proposed purchaser instructing your own set of solicitors to act for you in this transaction. The Council will have no involvement in the process other than to either nominate or approve a purchaser and to answer solicitors sales enquiries. The variable service charge, ground rent and insurance will need to be apportioned between the two parties on the date of completion.

For leases issued before 2006 the Council will 'buy-back' your share directly from you. 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 variable service charge, covering the cost of the scheme manager's services, alarm, external repairs and support charge - full details can be found in your lease.
Ground rent, currently £26* per annum.
Structural insurance, currently £7.80* per quarter.
The Over Sheltered Schemes are also subject to a water charge of £43.55* per quarter and a heating charge of £113.75* per quarter.

*All charges are correct as at May 2009 and 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 Housing Officer will contact you to organise a viewing. If you wish to accept the property, the Property Sales Officer will contact you to commence the Equity Share process. 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 you enter into an occupation agreement.

Contact housing services

Important Information

All of your rights and obligations are set out in the lease that will be issued to you. Please ensure you read through the lease with your solicitor and seek their advice before you sign it. Once signed the lease is a legally binding contract.

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.