home ownership for elderly people who rely on state benefits david abbey – director...
TRANSCRIPT
HOME OWNERSHIP FOR ELDERLY PEOPLE WHO RELY
ON STATE BENEFITS
David Abbey – DirectorMySafeExtraCare
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 = £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
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