Train the trainer training before version

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Train the trainer training before version

  1. 1. We are going to discuss why a registered sociallandlord would have leaseholders in theirproperties 1
  2. 2. Where does the funding come from?The Homes and Communities Agency (HCA) isthe national housing and regeneration agencyfor England, with a capital investment budgetof nearly £7bn and are the governing body for HousingAssociations . They contribute to economic growthby helping communities to realise theiraspirations for prosperity and to deliver high-quality housing that people can afford. Theyprovide investment for new affordable housingand to improve existing social housing, as wellas for regenerating land. 2
  3. 3. For example:You wish to purchase a property valued at£235,000Minimum share purchase is 35%Which equates to £82,500Most banks will require 10% depositYou would only need around £8K instead of around £23K depositwhich makes it more achievable to get on the property ladder. 3
  4. 4. Eligibility of the Prospective buyers will need tobe agreed by the Home buy agent, they willmake the necessary checks to confirm thebuyer is eligible.If they do not wish to register online andprefer to process a paper application, they canbe found on our website under the salessection > important information> downloads. 4
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  6. 6. A brochure that provides good information onShared Ownership, is the New Build Homebuywhich is available to print in the CCL drive FMleaflets or on our website. 6
  7. 7. Check with the caller that they are registeredwith the Homebuy Agent, if not advise themthat we cannot assist them until they have hadtheir eligibility checked and have received theirregistration number. 7
  8. 8. An example of how we receive our income tobuild further homes and to put back in to thecompanyApologies, I do not have the end of yearsfigure available 8
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  10. 10. Social HomeBuy is funded under section 19(3)of the Housing and Regeneration Act 2008 asFinancial Assistance (FA) 10
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  13. 13. Right to Buy discounts to rise to 75%The Government is set to breathe life into its Right to Buy (RTB)plans and increase the discounts available for tenants to up to75% of the property in a bid to reinvigorate interest in thescheme. Under the plans it is understood families could receive a35% discount after five years residency, with an extra 1% foreach additional year, up to a maximum of £75,000. It hadpreviously been expected that the maximum would be set at£50,000. Tenants in flats will get 50% off after five years, with2% added yearly. Currently the maximum discount stands at£16,000 to £38,000 depending on location.Currently there is no instruction relating to residents of HousingAssociations receiving larger discounts to purchase their homes,but if the government are trying to offer incentives for people toown their own homes this may change. 13
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  15. 15. The Homes and Community Agency, the governing body forHousing Associations require that LH may acquire additionalshares in their home, at a price equal to the relevant proportionof the current open market value of their home.Leases drawn up before April 2006 - staircasing must take placewithin 4 steps to become 100% LH and you cannot staircasewithin the first 12 months of purchase. If LH purchased propertyas a resale they are unable to staircase until after 3 monthsLeases drawn up after April 2006 - no limit on the number ofstaircasing transactions and staircasing can take place any timeafter purchase. If LH purchased property as a resale there is notime limit before they can staircase. 15
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  17. 17. Remember, If they own less than 100% oftheir property, any potential purchaser willhave to complete an application with theHomebuy Agent and be approved. Potentialpurchaser must meet the criteria set down bythe Government and administered by theHomebuy Agents to qualify to buy a sharedownership home. 17
  18. 18. 100% LH can sell to anyone withoutconsultation with FM, we will be notified duringsale/purchase process of the change ofownership 18
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  20. 20. Remember, Tony Residents Sales TeamManager has a waiting list of people lookingfor a Shared Ownership property 20
  21. 21. If a LH wants a copy of their lease and it is noton Swordfish, a copy can usually be availableto view as a PDF from Land Registryimmediately. This is not always the case andsome can take a few days to be sent to us.Always advise the LH that the request will takeup to 7 days just in case any delays in postalservices etc. 21
  22. 22. This is the first year Family Mosaic have promoted LeaseExtensions – It generates vital income for us, but is also offeringour residents a service . Some of our leases are approaching lessthan 80 year left – This is known as short and can causeleaseholder problems gaining mortgages and have difficultiessecuring buyers when selling.Remember- Family Mosaic do not own all our blocks andtherefore we do not hold the freehold. The lease extension canonly be increased to the amount of years that Family Mosaic havetheir lease for, with the Freeholder.If you are unsure, you can check the residents lease onSwordfish if available, the lease may show the wording ‘Underlease’ this shows that there is a freeholder, Family Mosaic have alease with the Freeholder and our leaseholder has a lease withus.UNDER LEASE 22
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  24. 24. Such requests can be processed through Front Office and will bedealt with by our Credit Control TeamSometimes we receive calls where a Shared Owners home is nolonger suitable for them and they would like to transfer toanother FM Shared Ownership property. There is no scheme inplace to do this, they will have to sell their existing propertythrough us in the usual way and the Resident Sales Team willassist with their sale.Remember the Resident Sales Team have a waiting list forpeople who want Shared Ownership properties and may be ableto match them with a potential buyer which will make their saleprocess far easier. 24
  25. 25. In general, home owners review their mortgage every 3 – 4years. Family Mosaic have approximately 2800 leaseholdproperties therefore we should be receiving remortgageapplication regularly. Until recently we had 6 in 18 months.Why do we need to know about a remortgage?- To ensure theleaseholder remain the same, to ensure that the new mortgagemeets with HCA guidelines.To ensure the mortgage is a shared ownership mortgageTo ensure Family Mosaic are aware of the new lender so that ourBuilding Insurance policy is noted.To ensure no additional borrowing is requested except for HomeImprovementsTo ensure Home Improvements are approved by our AssetManagement team to ensure no problems to the structure ofbuilding or cause problems to their neighbours. 25
  26. 26. Shared Ownership agreements prohibit subletting by the ownerto protect the public funds and ensure applicants are not enteringin to affordable home ownership for commercial gain. For residents who purchased their propertyunder Social Homebuy scheme- The whole point is that it is thepersons main home which they have bought with the benefit of aGrant. We have to protect the grant funding for the 5 years,therefore they are not allowed to sublet within this period. Ifthey wish to rent out and are 100% owners then the followingapplies: The lease they sign states that we will considerletting in the same way as we do for shared owners with ourreasonable costs and disbursement paid. So for a short periodwith a suitable reason – work sabbatical etc. The difference withSocial Homebuy tenants is that they have to provide a copy ofthe tenancy agreement with their request to sublet. If they have a flat there is a sub clause withinthe lease which says that if they wish to sublet then they have toalso provide a copy of the tenancy agreement and pay FamilyMosaic 1% of the monthly rent. This doesn’t apply to houses. 26
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  29. 29. Example of the Repairs obligation on theintranet 29
  30. 30. If there is no Building Insurance payment showing, it may bethat this building is not owned by FM and we lease the buildingfrom the Freeholder, the insurance will be included within themanagement fees.The resident would have to contact them to arrange a claim.Details of the Managing Agent would have been provided to theLeaseholder when they moved in to their home.Managing Agents contact details will usually be available in thecommunal area. 30
  31. 31. Reserve fund/Sinking fund  is money held in an interest gathering bank account and is put aside to contribute towards the cost of future cyclical decorations or major works to the block or estate. The aim of the fund is to cover the cost of major works so that the LH’s are not faced with large bills when the works take place. If there is not enough money in the reserve fund to pay for these works then the LH will have to make up the difference. This money is not refundable if you were to sell your home you would not be repaid any of the money. But your solicitor will advise the new purchaser of how much the LH has contributed to the fund.If the Works are urgent and cannot wait for the consultation to be carried out then FM can apply to the LH valuation tribunal for the permission for the works to be  31
  32. 32. carried out without going through Section 20 process.Leasehold Valuation Tribunal (LVT) is an independent decision making body which can make decisions on a variety of disputes relating to residential leasehold properties. The panel on LVT consists of three members: a lawyer, a lay person and a valuer. LVT has the authority to enforce payments of claims and legal fees, dismiss or partly dismiss claims, and attribute fees.  31
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  35. 35. DisposalsPeter Stratford arranges for properties to besold at Auction, these are properties that areno longer cost effective for us to maintain.Therefore we sell them. If the property is a flatthen there will usually be ground rent andpossibly service charges if any servicesprovided by FM. If a house we will normallysell as a freehold property therefore no furtherresponsibility to FM.Buy to LetAt the moment we have one block Effra Paradewhich was built for the sole purpose of peoplepurchasing to rent out as an investment. There 34
  36. 36. will be more of these in the future100% purchase no criteria or eligibility, justbuilt by FM in the capacity as a developer 34
  37. 37. All this money goes towards building newhomes, so you can see how importantLeaseholders are to Family Mosaic and ourbusiness. 35
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