Empty homes financial assistance information guide

Arun District Council’s empty homes assistance programme
Empty homes grant
Empty homes loan to let
Empty homes loan to sell
General advice
Applying for empty homes assistance

AR Empty homes information guide print version [pdf] 254KB

The purpose of financial assistance is to enable the Council to reduce the number of empty properties within the Arun District and to reduce homelessness. The Council can provide financial assistance to the registered proprietor (homeowner) of the empty property. The financial assistance will assist the homeowner to complete necessary works, which the homeowner would not otherwise have completed bringing the empty property to a Decent Homes Standard fit for immediate sale and occupation or immediate occupation by tenants nominated by the Councils Housing Options Team. In consideration of the financial assistance being provided the homeowner agrees to appoint a Managing Agent for the term of the grant/loan and let the property to Tenants nominated by the Council. The term of tenancy will be for a minimum of 12 months and maximum of 5 years, dependent on the amount applied for. The homeowner shall receive the rent and maintain the property at a habitable standard throughout. If the homeowner has been provided with a grant they will not be required to repay the financial assistance provided they meet the terms of the agreement. If the homeowner has been provided with a loan to let they will repay the loan and any Additional Repayment Amount accrued, in manageable monthly instalments from the rental income. If the homeowner has been provided with a loan to sell they will repay the loan within 12 months of the certified completion date.

1. Arun District Council’s empty homes assistance programme

1.1 The financial assistance programme is designed to help owners of empty homes bring their properties back into occupied use. On completion of the works the property must meet a decent home standard and be ready for immediate occupation. The programme will provide financial assistance to those owners who can not access private funding, and without financial help the property will remain empty.

2. Empty homes grant

2.1 Works covered under the grant

Works to put a property into reasonable repair and to achieve the Decent Homes Standard are covered. This includes virtually all types of repairs including internal decoration, flooring, gas, electric (where applicable) and energy performance certificates. It will be the homeowner’s responsibility to check that the Contractor holds all necessary insurances and certifications for carrying out the works

2.2 Eligible persons

Applicants must be over 18.
You must have photographic ID.
The Property must be a residential dwelling that has been continuously empty for at least 24 months, although the Council will consider a lesser empty period but not 6 months or below. It is for the Homeowner to prove (to the reasonable satisfaction of the Council) the length of time that the property has been empty. However, the Council will assist where possible by checking its own council tax records.
For leasehold interests there must be at least 80 years remaining on the contractual term of the lease and the Lease must contain the necessary repairing and subletting consents permitting the Homeowner to carry out the Works and sublet the Property to the Tenant.
Applicants must not have been successfully prosecuted by the Council for any offence relating to Housing Benefit, Council Tax, Tenancy relations or Private Sector Housing legislation within 5 years prior to the date of application.
Where the property is subject to a mortgage, the Homeowner has supplied written consent from the mortgagee confirming the mortgagee consents to the Legal Charge being entered on the Property Title in favour of the Council to rank after the mortgagee’s priority.
Where the property is subject to a mortgage, the Homeowner must ensure that prior to entering this Agreement; the mortgage is converted into a suitable buy to-let mortgage or has a suitable offer in place to do so and be satisfied that the Homeowner can meet any additional costs of the new mortgage.
A Homeowner wishing to take part in this Agreement must have a property registered at HM Land Registry and where the property is unregistered, the Homeowner must effect first registration of that Property at the Homeowner’s expense prior to entering into this Agreement.

2.3 Costs of the grant

The Council will charge 10% administration costs or £400 whichever is the lower. This can be deducted from the grant or paid in advance with your application.

2.4 Schedule of works

An officer from the Private Sector Housing Team will inspect the property and carry out an assessment to see if the property is suitable for the scheme. If it is, we will prepare a list of remedial work (schedule) that will need to be undertaken to ensure that on completion of the works the property will be in a good lettable condition (i.e. weather tight, warm with modern facilities). Once the application has been approved and a schedule of works provided you will be required to obtain a minimum of two estimates from qualified contractors.

The Homeowner must not instruct the Contractor to commence works until the Notice of Approval has been issued. Funds will not be paid out retrospectively for works already completed.

2.5 Nomination rights

In exchange for a grant your property will need to be managed by a Managing Agent of your choosing and appointment. The Council will have the right to nominate tenants, which cannot be refused, to the property for the duration of the agreement. All tenants are vetted and checked by our Housing Options Team, as well as supported to apply for any benefits they are entitled to. The length of the nomination rights is up to a maximum of five years with a minimum term of 12 months.

2.6 Rent levels

As part of the nomination rights, we would expect you to rent your property at Local Housing Allowance level or at a rate affordable for the tenant.

3. Empty homes loan to let

3.1 Works covered under the loan

3.2 Eligible persons

Applicants must be over 18.
You must have photographic ID.
The Property must be a residential dwelling that has been continuously empty for at least 24 months, although the Council will consider a lesser empty period but not 6 months or below. It is for the Homeowner to prove (to the reasonable satisfaction of the Council) the length of time that the property has been empty. However, the Council will assist where possible by checking its own council tax records.
For leasehold interests there must be at least 80 years remaining on the contractual term of the lease and the Lease must contain the necessary repairing and subletting consents permitting the Homeowner to carry out the Works and sublet the Property to the Tenant.
Applicants must not have been successfully prosecuted by the Council for any offence relating to Housing Benefit, Council Tax, Tenancy relations or Private Sector Housing legislation within 5 years prior to the date of application.
Where the property is subject to a mortgage, the Homeowner has supplied written consent from the mortgagee confirming the mortgagee consents to the Legal Charge being entered on the Property Title in favour of the Council to rank after the mortgagee’s priority.
Where the property is subject to a mortgage, the Homeowner must ensure that prior to entering this Agreement; the mortgage is converted into a suitable buy to-let mortgage or has a suitable offer in place to do so and be satisfied that the Homeowner can meet any additional costs of the new mortgage.
A Homeowner wishing to take part in this Agreement must have a property registered at HM Land Registry and where the property is unregistered, the Homeowner must effect first registration of that Property at the Homeowner’s expense prior to entering into this Agreement.

3.3 Costs of the loan

The Council will charge 10% administration costs or £400 whichever is the lower. This can be deducted from the loan or paid in advance with your application.

3.4 Credit checking

A credit check will be undertaken. A poor credit history may mean we are not able to offer you a loan.

3.5 Repayments

The loan is registered as a first (or if not possible a second) charge at Land Registry. The cost of this is the applicant’s responsibility and they must arrange this with their own solicitor. The loan repayments will be made in manageable monthly instalments from the applicants nominated bank account over the term of the agreement. The property cannot be sold for the duration of the loan unless written permission has been provided by Arun District Council.

3.6 Maximum limit of financial assistance

Maximum assistance is £10,000. If the cost of the works is greater than the loan the owner is responsible for the shortfall in funds.

3.7 Schedule of works

The Homeowner must not instruct the Contractor to commence works until the Notice of Approval has been issued. Funds will not be paid out retrospectively for works already completed. Gas safety certificates, electrical certificates and energy performance certificates (where applicable) will need to be obtained as part of the works and provided to the Council by the applicant before the property can be occupied.

3.8 Nomination rights

In exchange for a loan your property will need to be managed by a Managing Agent of your choosing and appointment. The Council will have the right to nominate tenants, which cannot be refused, to the property for the duration of the agreement. All tenants are vetted and checked by our Housing Options Team, as well as supported to apply for any benefits they are entitled to. The length of the nomination rights is up to a maximum of five years with a minimum term of 12 months.

3.9 Rent levels

As part of the nomination rights we would expect you to rent your property at Local Housing Allowance level or at a rate affordable for the tenant

4. Empty home loan to sell

4.1 Works covered under the loan

4.2 Eligible persons

Applicants must be over 18.
You must have photographic ID.
The Property must be a residential dwelling that has been continuously empty for at least 24 months, although the Council will consider a lesser empty period but not 6 months or below. It is for the Homeowner to prove (to the reasonable satisfaction of the Council) the length of time that the property has been empty. However, the Council will assist where possible by checking its own council tax records.
For leasehold interests there must be at least 80 years remaining on the contractual term of the lease and the Lease must contain the necessary repairing and subletting consents permitting the Homeowner to carry out the Works and sublet the Property to the Tenant.
Applicants must not have been successfully prosecuted by the Council for any offence relating to Housing Benefit, Council Tax, Tenancy relations or Private Sector Housing legislation within 5 years prior to the date of application.
Where the property is subject to a mortgage, the Homeowner has supplied written consent from the mortgagee confirming the mortgagee consents to the Legal Charge being entered on the Property Title in favour of the Council to rank after the mortgagee’s priority.
Where the property is subject to a mortgage, the Homeowner must ensure that prior to entering this Agreement; the mortgage is converted into a suitable buy to-let mortgage or has a suitable offer in place to do so and be satisfied that the Homeowner can meet any additional costs of the new mortgage.
A Homeowner wishing to take part in this Agreement must have a property registered at HM Land Registry and where the property is unregistered, the Homeowner must effect first registration of that Property at the Homeowner’s expense prior to entering into this Agreement.

4.3 Cost of loan

The Council will charge 10% administration costs or £400 whichever is the lower. This can be deducted from the loan or paid in advance.

4.4 Credit checking

A credit check will be undertaken. A poor credit history may mean we are not able to offer you a loan.

4.5 Repayments

The loan is registered as a first (or if not possible a second) charge at Land Registry. The cost of this is the applicant’s responsibility and they must arrange this with their own solicitor. The loan must be repaid within 12 month of the certified completion date or immediately upon sale of the property. The property cannot be occupied for the duration of the loan unless written permission has been provided by Arun District Council.

4.6 Maximum limit of financial assistance

Maximum assistance is £20,000. If the cost of the works is greater than the loan the owner is responsible for the shortfall in funds.

4.7 Schedule of works

An officer from the Private Sector Housing Team will inspect the property and carry out an assessment to see if the property is suitable for the scheme. If it is, we will prepare a list of remedial work (schedule) that will need to be undertaken to ensure that on completion of the works the property will be in a good, saleable condition (i.e. ready for immediate occupation on completion of sale). Once the application has been approved and a schedule of works provided you will be required to obtain a minimum of two estimates from qualified contractors.

The Homeowner must not instruct the Contractor to commence works until the Notice of Approval has been issued. Funds will not be paid out retrospectively for works already completed. Gas safety certificates, electrical certificates and energy performance certificates and any other documentation required to successfully market and legally sell a property will need to be obtained as part of the works.

5. General advice

5.1 Estimates

You should obtain at least two estimates from competent qualified tradespersons, giving an itemised breakdown of costs based on the schedule of works we provide. We will usually accept the lowest of the estimates. This contractor must be the contractor you employ to carry out the works, once the whole application has been approved. If you encounter difficulties in obtaining estimates, you should visit the Trading Standards Approved site Buy With Confidence – Trading Standards Approved.

5.2 Invoices for loans

When claiming a payment an invoice is required. The invoice must be addressed to the homeowner and NOT the council. The Council reserve the right to refuse any payments if you submit a different contractor’s invoice from the one that was approved or if works have been completed that haven’t been prior approved.

5.3 Doing the work yourself

If you intend to carry out any part of the work yourself, you should tell the Council at the time of your application. The amount of financial assistance for DIY works will cover materials only. You should estimate quantities and materials very carefully. A fully detailed priced specification (based on the schedule of works and provided on the Council’s form) is needed, so that the correct costs can be calculated.

5.4 Specialist quotations

If you are installing a damp-proof course or carrying out treatment for dry-rot, then the Council will require that the work is carried out by a specialist contractor who will issue a reasonable guarantee for the treatment work to be carried out. This guarantee must be backed by insurance or bond cover.

5.5 Plans and building regulations consent

Rewiring, replacement windows and most major structural alterations and adaptations will come under building regulation control. Some works may be exempt if the works are carried out through an Approved Installer Scheme. It is the applicant’s responsibility to obtain all the necessary permissions for the intended works before they commence.

5.6 Value Added Tax

VAT may be included in the estimated expense for loan purposes provided your Contractor itemises the work subject to VAT and is VAT registered. The contractors VAT number must be on the estimate they provide. Properties that have been empty over 2 years may be eligible to a reduced rate of VAT on materials only (5%) for some works. Further details on this can be found on the Customs and Excise website or on the VAT and Building and construction information leaflet on the council website.

5.7 Conditions attached to empty property assistance

Empty Homes Financial Assistance is repayable in full if any part of the signed agreement is breached or if the property is sold or if there is a change in ownership before the end of the term. Interest will also become payable at a rate of 4% above bank base rate and will be added to the homeowners repayment invoice.

5.8 Appeals against a refusal

Appeals against any decision not to offer Empty Homes Assistance will be determined by the relevant Head of Service. Initially the appeal should be made in writing to the Principal Environmental Health Officer/Manager of the Private Sector Housing Team who will review and refer the matter on if necessary.

5.9 Mortgaged properties

If you have a mortgage on your empty home, your mortgage company will have to agree to a second charge being placed on the property title. They will also have to agree to the property being rented out. It is the applicant’s responsibility to check the terms and conditions of their mortgage to ascertain if they are able to do this before submitting any application.

Financial Assistance Expiry

Providing a that the Homeowner has complied with the terms and conditions of the Agreement then at the end of the Term and on the condition that the Additional Repayment Amounts (if applicable) have been repaid by the Homeowner, the Council shall declare the Funding made to the Homeowner to be a gift in the instance of a grant or settled in full, in the instance of a loan. We will apply to discharge the Legal Charge and remove the restriction from the Property Title Number register and the Homeowner’s obligations under this Agreement shall come to an end. You will be written to between 3-6 months before the expiry of your financial assistance to advise.

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Arun District Council collects information about you in order to provide you with the service regarding empty property assistance loans. Please see https://www.arun.gov.uk/privacy-policy for further details.

Applying for empty property assistance

You contact us with an initial enquiry by emailing empty.homes@arun.gov.uk
You will be referred to the Council’s website to download the application pack.
Once a completed application form has been received and validated you will be notified within 10 working days. If the application is incomplete you will also be notified and have a further 10 working days to provide the necessary documentation.
We will check the Land Registry for proof of ownership. If applicable we also need evidence of the number of years left on your lease.
Once validated an appointment will be made to view your property. We will need to view all rooms and any garages and sheds you wish to be included in the rental.
Following our visit, we will provide you with a schedule of works (and guidance notes) that need to be completed to bring the property up to a let-able standard.
You will need to arrange a minimum of two itemised estimates for the work. In some cases we can help to arrange estimates. Buy With Confidence – Trading Standards Approved is a good starting point for recommended contractors.
Once itemised estimates have been obtained for the schedule of works you were provided with and these have been given to Arun District Council for review, the cheapest of the two contractor quotes will be appointed. The Empty Homes Assistance will either cover the whole of the costs or you will be responsible to cover the shortfall.
You will also be sent a copy of the ‘Deed’ that you will be required to sign and execute in order to secure the financial assistance with Land Registry. This document binds you and the Council for an agreed number of years, once the property is brought up to a let-able/sellable standard.
There are conditions attached to most forms of financial assistance. You must carefully consider the commitment for the property concerned. You will be expected to re-pay the assistance in full if you sell the property during the partnership agreement period.
It is important you do not commence any of the works that you require under the financial assistance until you have received the formal ‘Notice of Approval’ any works carried out prior to this will not be covered by the financial assistance and may delay works starting.
Once you have your ‘Notice Approval’ you can start the works. Please let us know when you expect this to happen and also provide us with an expected end date.
Once the works are completed an officer will come and inspect the property against the schedule of works provided. We are there to ensure value for money, for publicly funded works, rather than ensure all elements have been completed to your satisfaction. We want the property to have met the decent homes standard so that it can be occupied.
When the officer is satisfied the works are completed you will be required to submit an invoice from the approved contractor. You will also be required (if you haven’t already done so) to provide a copy of the legal charge registered with HM Land Registry in favour of Arun District Council for the funding agreed.
Once the documentation provided has been reviewed and deemed satisfactory you will be notified, and payment will be released shortly afterwards. The Council’s Housing Options Team will contact you directly to arrange the nomination on your property.

We can offer support and help to owners throughout this process. Please contact the empty properties officer on 01903 737788 or empty.homes@arun.gov.uk if you want to talk through any concerns or queries. Alternatively, you can seek independent legal advice.