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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 • 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 ECH FUTURE CHALLENGES • • • • Less Grants in future More mixed tenure Higher %age sales required Buyers frequently have shortfall on ECH purchase price 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 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 Property Value £240,000 Housing Association Shared Ownership 30% 70% Sale Rent £72,000 £380/m Service Charge – Housing Association (Repairs & Maintenance) £130/m BUY ▲ Fees - £4,000 approx ▲Mortgage £72,000 Rent Service Charge = £380/m = £130/m Housing Benefit > H/Ass Housing Benefit > H/Ass Mortgage Interest charged by the Building Society Paid by SMI benefit direct to Building Society = £365/m = £218/m Top up paid by Home Owner direct to Building Society = £147/m 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 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 THE MYSAFEEXTRACARE SOLUTION • • • • • Pre mortgage application Solution presentation Mortgage accelerator Mortgage payment support Legal assistance NEXTS STEPS Consider Home Ownership in ECH for people who rely on state benefits Contact: David Abbey – Director MySafeExtraCare Tel: 024 76 403020 [email protected]