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AGENDA

HOME OWNERSHIP FOR ELDERLY PEOPLE WHO RELY ON STATE BENEFITS David Abbey – Director MySafeExtraCare. AGENDA. Introduction & Background ECH Future Challenges Shared Ownership how it works Affordability The MySafeExtraCare Solution Next Step. INTRODUCTION & BACKGROUND.

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AGENDA

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  1. HOME OWNERSHIP FOR ELDERLY PEOPLE WHO RELY ON STATE BENEFITSDavid Abbey – DirectorMySafeExtraCare

  2. AGENDA • Introduction & Background • ECH Future Challenges • Shared Ownership how it works • Affordability • The MySafeExtraCare Solution • Next Step

  3. INTRODUCTION & BACKGROUND • Another housing option, provides companionship (good social life), independence and long term security • Some unsold Extra Care Housing (ECH) • Local Authorities have more applicants for rental ECH than rental properties • MySafeExtraCare team has over a decade of providing mortgages for people who have a disability and rely on state benefits

  4. ECH FUTURE CHALLENGES • Less Grants in future • More mixed tenure • Higher %age sales required • Buyers frequently have shortfall on ECH purchase price

  5. SHARED OWNERSHIP • Buy some of property (with mortgage up to 100% of share) • Rent the remainder off H/Ass • Mortgage paid by (SMI) Support for Mortgage Interest • Rent paid by Housing Benefit • Both benefits in addition to existing benefits • Owner pays “top up” mortgage

  6. HOW IT WORKS • 55-75 years of age must have support needs (DLA/AA), plus other benefits • 75+ with or without support needs, must be in receipt of PCG • Alteration of lease by H/Ass

  7. Property Value £240,000 Housing Association Shared Ownership 30% 70% Sale Rent £72,000 £380/m Service Charge – Housing Association (Repairs & Maintenance) £130/m

  8. BUY ▲ Fees - £4,000 approx ▲Mortgage £72,000 Rent = £380/m Housing Benefit > H/Ass Service Charge = £130/m Housing Benefit > H/Ass Mortgage Interest charged by the Building Society = £365/m Paid by SMI benefit direct to Building Society = £218/m Top up paid by Home Owner direct to Building Society = £147/m

  9. MORTGAGES SMI major points: • New home better suited to their needs • In receipt of other qualifying Benefits (13 weeks) • Most mortgages up to £100,000 • Benefit pays interest only • Mortgage “Top up” from home owner

  10. RISKS • Adults living with the home owner (inc. children/older relatives) who are not live in care and support – could reduce or cancel SMI and Housing Benefit • Affordability

  11. THE MYSAFEEXTRACARE SOLUTION • Pre mortgage application • Solution presentation • Mortgage accelerator • Mortgage payment support • Legal assistance

  12. NEXTS STEPS Consider Home Ownership in ECH for people who rely on state benefits Contact: David Abbey – Director MySafeExtraCare Tel: 024 76 403020 davidabbey@mysafeextracare.info

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