Home Improvement Loans

Purpose/key outcomes

These Home Improvement Loans are being made available to enable the renovation and improvement of single or multiple properties. This is to improve or maintain the standards within the property which ensure its continuing use as residential accommodation.

This loan is not available to support works to second homes and properties to be used for holiday lets or Airbnb.

Eligibility criteria (applicant)

Owners of sub-standard accommodation within the County can apply for the loan. Empty dwellings are not applicable unless the owner is intending to reside in the property as their main dwelling. This includes:

Owner occupiers
Landlords
Developers
Charities / Third Sector

Priority must be given to homeowners and landlords.

Priority must be given to landlords that offer affordable / social housing / nomination rights over market rent.

The applicant must be able to afford the monthly loan repayments and will be subject to a financial assessment.

Applicants must not:

Have adverse credit history which may include:
County Court Judgements (CCJ)
Individual Voluntary Arrangements (IVAs)
Debt Relief Order (DRO)
Bankrupt (within last 6 years)
Company Insolvency / Liquidation

Owe any outstanding debt to the Local Authority at the time of making an application.

Eligibility criteria (works)

Any loan requiring works must contribute to making the property warm, safe or secure. There is no requirement that the property must meet all these criteria. The loan could be targeted at one key element.

The loan scheme could be used to support the following elements:

Substandard Housing (Cat 1 / Cat 2 Hazards / Welsh Housing Quality Standard).
Repair, Fire Safety or Security.
Empty Homes (Renovation / Conversion).
Energy Efficiency (ECO top up).
Group Repair Schemes / Envelope Schemes.
Private Rented Sector (Access Schemes).
Aids and adaptations for older or disabled people or DFG top up.

This is not an exhaustive list and if the works contribute to making the property warm safe or secure, then it will fall within the terms of the scheme.

There must be no Category 1 hazards (as defined by Housing Health and Safety Rating System HHSRS) after completion of works if the loan is a Landlord Loan, i.e. The property is a rented property.

Officers from the local authority will visit each property to determine eligible work and discuss the loan application process with the applicant.

Applicants are responsible for securing their own contractors for the works. The local authority will not be liable for the quality of the workmanship or follow up on defects following completion of the works.

Maximum loan periods

Owner occupiers - maximum loan period up to 10 years.
Landlords / Developers / Charities - maximum loan period up to 5 years.

Repayment periods are on a yearly diminishing basis as the finance has been loaned to the local authority by the Welsh government and the finance is to be repaid in 2030.

Loan period will be agreed on application; the period will depend on the value of the loan and applicant’s financial ability to repay.

Repayment terms

Loan repayment will be by monthly standing order payments and commences the first full month after works are deemed complete and final payment of the loan has been made.

For owner-occupiers, the minimum repayment amount is set at £50/month and for Landlords the minimum repayment amount is £100/month.

A loan can be repaid in full at any time.

Loans are interest free, providing there is no default on the loan. In the event of a default in repayment the remainder of the loan will become immediately due, and interest will be charged at a rate of 6% from the date of default by the Borrower.

Conditions

Any loan offered, taking into account any existing mortgage cannot exceed 80% of the currentproperty value. It is possible in certain cases for another property to be used as security for the loan.

Loans must be secured by a first or second financial charge with Land Registry. If there is an existing mortgage on the property, the council will need the lenders consent to secure our charge.

If a property is under joint ownership both parties will have to agree to a legal charge being placed on the property including signing the legal charge and loan facility agreement documentation; however, only one person will be required to complete the application form.

The property must remain fully insured against loss or damage, to full reinstatement value.

Delegated authority will be provided to the Head of Housing and Public Protection (or equivalent) to approve loan agreements in accordance with the criteria of this Policy.

Loan amounts

Owner occupiers and Landlords

Min £1,000 up to a Max £25,000 per unit

The actual amount of loan that will be approved will be dependent on the actual cost of the works and that any loan offered, taking into account any existing mortgage, cannot exceed 80% of the current market property value.

If there is an existing mortgage the current property value will be determined and supported by a valuation report. The valuation must be undertaken by a qualified surveyor. The cost of the valuation is payable by the applicant.

Loan fee charges/cost

A one-off administration fee will apply that may be paid over the term of the loan or paid up front. The fee is a percentage applied to the loan which varies depending on the repayment period.

The fee amount is set out as follows.

For loans taken over 1 to 3 years, the administration fee is 10%.

For loans taken over 4 to 5 years (Landlords) & 4 to 10 years (Owner occupiers), the fee will be 15%.

On this page

Houses into Homes (Empty Properties) Loan

For properties let at Local Housing Allowance

Empty Homes Grant (subject to funding)

Discretionary Lifetime Loans Financial Assistance

Health and Housing Ancillary Assistance

Houses into Homes (Empty Properties) Loan

Purpose/key outcomes

Houses to Homes is a Welsh Government initiative designed to bring empty properties (min 6 months empty) back into use for sale or rent.

Finance may be used for:

loans to return a property to use to sell - these loans would have a maximum 2-year repayment period.

loans to return a property to use for rent - these loans would have a maximum 5-year repayment period

Eligibility criteria (applicant)

Loans can be offered to individuals (expected 3 months’ pay slips), charities (3 years accounts), companies/ businesses (3 years accounts).

Persons applying for the above loans may either be existing or prospective owners; but the property must been in the applicant’s name before the loan can be approved.

Loans are not available for people wanting to renovate the property and live in it as their principal home (see Home Improvement Loans).

Eligibility criteria (works)

Works required for the renovation and improvement of single properties or the conversion of empty properties into a number of units, so that they are suitable for use as residential accommodation.

Works must comply with all relevant Building Regulations and meet Planning where necessary.

The applicant is responsible for securing their own contractors for the works. The local authority will not be liable for the quality of the workmanship or follow up on defects following completion of the works.

Works outside the curtilage of the property are not eligible for assistance unless they relate to the provision of essential services such as water, gas, or electricity.

Loan assistance will not be available for works to: -

Properties, which are not of a permanent nature such as houseboats and caravans.
Sheds, outhouses, and extensions such as conservatories, which do not have Building Regulations approval.
Buildings not suitable for conversion to habitable dwellings.
Buildings where at least 40% is used by the applicant and/or his family as their home.
Buildings which are or will be let as holiday homes or Airbnb.

Repayment terms

This will depend on what is the intention with the property on completion of the works.

If renovating a single property, which is to be sold, the loan must be repaid when the property is sold or up to two years from the date of the loan approval, whichever is the sooner.
If converting a property into a number of units, which are to be sold on completion of the works, it is expected that the loan must be repaid on sale of the first unit, or two years, whichever is the sooner. However, we will endeavour to arrange a mutually agreeable repayment schedule.
If the property/units are to be made available for letting the loan must be repaid within 3 years from the date of the loan approval.
All loans can be repaid in full at any time.
The loans are interest free, providing there is no default on the loan.
Where any sum is required to be paid but is not repaid in accordance with the loan conditions, a breach of conditions will have occurred.
In this event, repayment of the remainder of the loan will become immediately due and interest will be charged at a rate of 6% from the date of default by the Borrower.

Conditions

Loans will be secured as first or second charge against the Land Registry Title.

Loans can only be made available for properties that have been empty for at least six months or more.

Any loan offered, taking into account any existing mortgage cannot exceed the following Loan to Value rates.

Up to £150,000 loan - 80% LTV and
£150,001 - £250,000 loan – 70% LTV

The Council may give consideration in certain cases for another property to be used as security for the loan.

The Applicant must carry out the conversion/repair works within an agreed time period.

The property/units must be marketed for sale or for let within a reasonable period of time after completing the works (12 weeks). If the property/units are available for rent and are not occupied within this time period, then the loan may become repayable.
The loan must be repaid either on or before the date as specified in the Loan Facility Agreement.

The property must remain fully insured against loss or damage, to full reinstatement value.

Delegated authority will be provided to the Head of Housing and Public Protection (or equivalent) to approve loan agreements in accordance with the criteria of this Policy.

Maximum

For properties to be sold or let (at Market value)

Min £1,000 up to a Max £25,000 per unit.

For properties let at Local Housing Allowance

Min £1,000 up to a Max £35,000 per unit.

Landlord will need to enter into a Nomination Rights agreement or any Private Rented Sector Lease scheme that may be in operation.

Funding up to £25,000 will be available up front before works start, providing owners with working capital. Should the loan exceed £25,000 then subsequent interim payments can be made up to the full loan amount.

Loan fee charges

An administration fee will be charged as a contribution towards the costs of processing applications.

All fees are subject to change annually in line with the Council’s Fees and Charges Policy.

Loan amount	Fee
£0 - £50,000	£295.00
£50,001 - £100,000	£395.00
£100,001 - £150,000	£495.00
£150,001 - £250,000	£595.00

Additional charges will be added to the administration fee for registering the loan charge with the Land Registry and Companies House (if required) by Pembrokeshire County Council.

Building/planning fees and RICS evaluation fees (if required) are not included and should be paid by the applicant.

Empty Homes Grant (subject to funding)

Purpose/key outcomes

The purpose of this grant is to bring empty homes back into use to help re-generate communities and provide much-needed affordable housing for individuals.

Eligibility criteria (applicant)

Applicants must be owners or prospective owners, who intend to occupy the empty home as their main residence, for a minimum 5-year period from the date of the certification of grant aided work. (Grant condition period).

Consideration will also be given to applications from private landlords whose intention is to let the property out for a minimum period of 5 years after completion of works at affordable rent level (maximum intermediate rent level).

The completion of all eligible work is a requirement to grant payment being released. If the cost of eligible works exceeds the grant maximum, this applicant will be responsible to finance the excess cost. Evidence of this finance being available would be required prior to award.

Eligibility criteria (works)

The empty home must be located within Pembrokeshire.

The home must currently be registered with the authority’s Council Tax Department as empty (un-occupied) and have been so for a minimum 6-month period at the date of application.

Grant aid will only be awarded for eligible work identified by the Local Authority. Only essential repair works required to make the home safe, secure, and free from any category 1 hazards will be considered.

Any work completed prior to the survey and grant approval will not be eligible for grant aid.

Conditions

Homeowner applicants are required to make a mandatory contribution of 15% of the total cost of eligible works up to the grant maximum (tbc dependent on the scheme in place). The mandatory contribution will be waived for applicants in financial hardship.

Private landlords will be required to make a mandatory contribution of 50% of the total cost of eligible works up to the grant maximum ((tbc dependent on the scheme in place).

No grant assistance will be awarded where the total assessed work is under £1,000.

Repayment of the grant aid awarded is required if the home is sold, or not occupied as intended during the 5-year grant condition period.

It is a requirement that a full Legal Charge be registered against the property title at the Land Registry in favour of the Local Authority.

Delegated authority will be provided to the Head of Housing and Public Protection (or equivalent) to approve loan/grant agreements in accordance with the criteria of this Policy.

Maximum

Grant limit will be set according to funding available and delegated powers issued to Head of service and cabinet member to agree maximum value and criteria.

The grant is subject to available funding

Discretionary Lifetime Loans Financial Assistance

Purpose/key outcomes

There may be occasion when a property is in such a condition (Cat 1 hazards) that it is not reasonable for the Council to allow the occupier to remain without works being undertaken. The Council has discretion to offer a Lifetime Loan for Category 1 hazards within the property.

There may also be situation whereby a vulnerable person may be living in unsatisfactory circumstances which require improvements to be made to the home to enable that person to remain in the household. The works identified must be essential with evidence provided of significant cost avoidance to the health and/or social care services through enabling the vulnerable person to remain at home.

Eligibility criteria (applicant)

Owner occupiers who cannot meet the affordability check for.

Home Improvement Loans.

Where eligible benevolent funding cannot be identified or is insufficient.

Eligibility criteria (works)

Repair works for serious, unexpected, and potentially dangerous situations requiring immediate action to a dwelling such as:

securing the basic fabric of the property from the entry of wind or rain
protecting the occupants from immediate exposure to danger
repairs to windows and doors
defective drainage
dangerous wiring

Works will be Category 1 (HHSRS) hazards only and/or works to allow vulnerable individual to remain in the home.

Any other works of assistance at the discretion of the Council. Officers from the local authority will visit each property to determine eligible work and discuss the financial assistance application process with the applicant.

Repayment terms

This financial assistance becomes repayable on sale or transfer of the property or if the applicant ceases to reside at the property.

A local land charge or full legal charge will be placed that will bind the applicant and any successors in title. This charge will be registered in the local land charges register and thereafter registered with the Land Registry.

The loans are interest free until the time that they become repayable.

Where any sum is required to be paid but is not repaid in accordance with the loan conditions, a breach of conditions will have occurred. In such instances Pembrokeshire County Council may demand immediate repayment of the loan and interest will be charged at 5% above the Bank of England base rate.

Conditions

The Council may consider the availability of equity in the property when determining the amount of loan to award.

For loans up to £5,000 a local land charge will be secured on the property that will bind the applicant and any successors in title. This charge will be registered in the local land charges register and thereafter registered with the Land Registry.

For loans over £5,000 a Land Registry Legal Charge will be lodged that will bind the applicant and any successors in title. This charge will be registered in the local land charges register and thereafter registered with the Land Registry.

Delegated authority will be provided to the Head of Housing and Public Protection (or equivalent) to approve loan/grant agreements in accordance with the criteria of this Policy in accordance with the authority’s consitution.

Maximum

£15,000 inclusive of VAT for removal of Category 1 hazards (with the discretion to increase this in exceptional circumstances by consideration of the Head of Housing (or equivalent) and in accordance with the authority’s contract procedure requirements.

Unlimited for works that enable an individual to remain in their home and significant health and social care cost avoidance in place.

This loan is subject to available funding, and subject to appropriate capital programme application process.

Loan fee charges/cost

No administration fee will be charged for this Loan.

Health and Housing Ancillary Assistance

Purpose/key outcomes

Discretionary assistance to enable independent living where other grant and loan products do not cover costs due to limitations in criteria.

Financial assistance is dependent on availability of appropriate funding avenues, such as Integrated Care Funding.

Examples of qualifying items include.

clearance of property in hoarding cases
temporary accommodation to facilitate works
connection of services
other public health matters

This funding is offered at the discretion of the Team Manager only.

Please note: This funding is not grant aid, but financial assistance provided for the duration of the recipient’s occupancy of the property and becomes repayable on sale/transfer of the property.

Eligibility criteria (applicant)

Vulnerable clients who cannot access other funding sources.

Eligibility criteria (works)

Works which are necessary for the health/ safety of the occupant or other persons in proximity to the deficiency identified but cannot be fulfilled by other grant and loan products.

Officers from the local authority will visit each property to determine eligible work and discuss each case with Team Manager.

Conditions

Local Land Charges or Land Registry Legal Charge will be lodged to become repayable on sale or transfer of the property, for whatever reason, at whatever point in time.

Delegated authority will be provided to the Head of Housing and Public Protection (or equivalent) to approve loan/grant agreements in accordance with the criteria of this Policy.

Maximum

Subject to available funding.

Pembrokeshire Housing Financial Assistance Policy