| Empty Homes Eligibility & FAQs |
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Am I eligible? To be eligible for an NEHLF loan you must:
How much can I borrow? You can borrow any amount between £5,000 and £15,000. If you have an existing mortgage, the Ecology Building Society will take the second charge.
What is the interest rate? The interest rate is fixed at 5%.
How long can I take the loan out for? The loan is for a maximum of 5 years. If you decide to pay the loan off before the end of the 5 year period, there are early repayment fees of 6% of the redemption balance.
What fees do I have to pay? If you apply through a participating local authority scheme then there are no fees. If you apply directly to Ecology Building Society then there are administration and valuation fees applicable.
Is there a timescale for completing the work? The estimated timescale for the completion of the main works will be jointly agreed and identified in the loan contract. The choice of who actually undertakes the works is the property owner’s decision but the works will need to deliver the property to Decent Homes standard and again that will be agreed in the contract.
What type of repair work can be done? There is no fixed list of permitted works. The most common works are likely to include non-uPVC double glazed windows/doors, roofing work, kitchens, bathrooms, re-wiring, plumbing and insulation work.
Can I sell the property once the work is completed? The intention is that the empty property must be let once it has been refurbished to Decent Homes standard. It must be let at an affordable rent level that will have been agreed at the time of the application. If you do sell the property within the agreed 5 year loan period, then the loan must be repaid and you will face an early redemption penalty.
What does Decent Homes standard mean?
This is a government standard which means that the home is in good repair, has reasonably modern facilities and is warm and weatherproof. |
