Equity stakeholding the new right to buy
Download
1 / 7

Equity Stakeholding: the new right to buy? - PowerPoint PPT Presentation


  • 62 Views
  • Uploaded on

Equity Stakeholding: the new right to buy?. Peter Williams Council of Mortgage Lenders [email protected] My Presentation. The Context Existing opportunities Shared Equity – Open Market Homebuy Social Homebuy Conclusions/Questions Treading a careful path!. The Context.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Equity Stakeholding: the new right to buy?' - eryk


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Equity stakeholding the new right to buy

Equity Stakeholding: the new right to buy?

Peter Williams

Council of Mortgage Lenders

[email protected]

COUNCIL of MORTGAGELENDERS


My presentation
My Presentation

  • The Context

  • Existing opportunities

  • Shared Equity – Open Market Homebuy

  • Social Homebuy

  • Conclusions/Questions

  • Treading a careful path!

COUNCIL of MORTGAGELENDERS


The context
The Context

  • Government commitment to growing home ownership – choice, mobility, asset based welfare

  • Home Ownership Task Force concerns re existing low cost home ownership programmes

  • Recognise impact of MCOB, Responsible Lending, Treating Customers Fairly via FSA plus Basel 2 and HIPS

  • Experience of the RRO on Home Improvement

  • CML study of demand for Equity Loans (The potential market for equity loans in the UK, Glen Bramley, CML research report, 2004)

COUNCIL of MORTGAGELENDERS


Existing opportunities
Existing Opportunities

  • RTB performed well from a lender perspective

  • Shared Ownership – some difficulties re arrears, performance of some HAs. Concern re low value shares. Joint Guidance issued to help overcome this (Shared ownership: joint guidance, Housing Corporation, CML, NHF, September 2004)

  • Number of lenders shrinking/stable

  • Homebuy performed well and preferred by lenders/borrowers

  • Right to Acquire – limited take-up

COUNCIL of MORTGAGELENDERS


Shared equity open market homebuy
Shared Equity – Open Market Homebuy

  • Extending Homebuy – October 2006 and within current parameters re £ income, property price, repairs etc as per Capital Funding Guide

  • Splitting the equity share –lenders/govt

  • Process complicated by the Key Facts Illustration (KFI) – advice to customers

  • 3 lenders participating in pilot

  • Flexibility/portability on the agenda but …

  • Debt not equity; risks for lenders and borrowers

COUNCIL of MORTGAGELENDERS


Social homebuy
Social Homebuy

  • Limited detail – in principle support but …

  • Voluntary with a pilot

  • Property may already be charged – SO model/Security Trustee

  • Minimum loan size; legal/survey costs

  • Loan will be first charge but enforceable?

  • Repairing obligations – real concerns?

  • Resale? What is the market?

COUNCIL of MORTGAGELENDERS


Conclusions questions
Conclusions/Questions

  • Lender appetite for equity stakes limited

  • Costs of equity stakes – legals/surveys/effective interest rate etc and demand/return

  • Questions of best advice?

  • Customer appetite?

  • Issue now complicated by MCOB, Basel 2

  • Portability/flexibility – ideal but …

  • Explore in detail..time/resource consequences

  • Need effective partnership with landlords

  • Support aspiration but in practice?

COUNCIL of MORTGAGELENDERS


ad