Private Sector Housing

Equity Release

Most homeowners have a mortgage which is well below the value of their property and many are in a position to obtain a 'further advance' to enable them to fund necessary repairs. We expect most private sector disrepair to be dealt with in this way, rather than through council grants.

'Equity release' schemes are a special category of loan to owner-occupiers. They are usually only available to those aged 60 or over (though they may also be available for younger disabled people). A particular feature of Equity Release schemes is that you may not necessarily have to repay the loan.

It is usually enough to pay the interest only. Where owners are older (usually over 75) it may not be necessary, even, to pay the interest, until the property is sold.

Many banks and building societies offer equity release schemes. Some are complicated and hard to understand. Some could put you at risk of having your home repossessed if you fail to keep up with the repayments.

The following 2 schemes include guarantees against repossession:

House Proud

This scheme has been set up by a group of London local authorities and is supported by Barking and Dagenham.

Applicants must be at least 60 years or be a member of a household containing a disabled person of any age. The scheme guarantees that the property will not be repossessed even if the owner is unable to keep up with the repayments.

We will contribute the £500 arrangement fee for eligible clients who carry out works under this scheme.

The scheme is run in conjunction with Hanover Housing who assist residents with their application and the arrangement and supervision of the building works.

Safe Home Income Plans (SHIP)

SHIP is a self-regulating body dedicated to protecting people who take out home-income and equity-release plans.

Schemes operated by members of SHIP provide guarantees with equity-release schemes of:

You will never lose your home
You will have the freedom to move to a suitable alternative property if you wish
You will always be provided with a fair, easy-to-understand and full presentation of all your obligations and commitments

Further details of these schemes are available from SHIP on 0870 241 6060.

Important Information

If you decide to use any of these schemes it is important to understand that you will be giving up part of the value of your home. This means that when it is eventually sold, whoever inherits your estate will receive a reduced amount.

Independent advice

You are advised to take independent financial advice before entering into an Equity release scheme.

The Council of Mortgage Lenders has produced a useful booklet on Equity release schemes. We can provide you with a free copy if you contact us at the address shown or, alternatively, you can download a copy from the Council of Mortgage Lenders website.

Advice is also available from Age Concern, whose local office is at:

The White House

884 Green Lane

Dagenham

RM8 1BX

Tel: 020 8270 4946 or 020 8270 4947

Contact

Private Sector Housing Team

Roycraft House

15 Linton Road

Barking

IG11 8HE

Supported by Barking and Dagenham Direct:

Tel: 020 8215 3002

Fax: 020 8227 5184

Textphone: 020 8227 5755

Email: 3000direct@lbbd.gov.uk|

Opening hours: Monday to Friday, 8am - 8pm.