Home Owners
Landlords
North Ayrshire
Empty Homes
Loan Fund
nachousingservices
If you own an empty home that needs to be
repaired before someone can live in it, North
Ayrshire Council may be able to help you.
The Council offers interest free loans of between
£2,000 and £15,000 to help owners bring their
empty homes back into use.
Once the repairs are done, your property would have
to be sold (within set price limits) or rented (generally
using the Council’s Rent Deposit Guarantee Scheme).
The Rent Deposit Guarantee Scheme is a free service
which helps landlords to find tenants for their homes.
Landlords are given help to set up a tenancy and a
guarantee is made for the deposit.
The Council can help you to complete your loan
application and (if needed) give you advice on
becoming a landlord.
If you choose to sell your home, you must sell it within
one year of the loan being paid to you. The loan must
be repaid when your home is sold. If it is not sold
within a year, it must be rented (and the loan repaid in
monthly payments).
Interest
free loans
of between
£2,000 and
£15,000
How much money could I get?
The amount of money you can borrow depends on the
size of your home. Table 1 below gives information on
the loan, sale and rental costs:
Your empt
home ma
cost you mo
than £8,00
a year.
Why should I bring my home back into use?
Your empty home may cost you more than £8,000 a year. This
is because, even though your home is not in use, you will still
have bills to pay, such as mortgage payments, management
agent fees, repairs, security, insurance and council tax.
Empty homes may attract vandalism and antisocial behaviour.
They are also more likely to need larger and more expensive
repairs if they are left unused for a long time. The value of long
term empty homes can be less than if they were being used and
in good repair. They can also affect the value of nearby homes.
Council Tax Levy
North Ayrshire Council has brought in a Council Tax Levy for
long term empty homes. From 1 April 2016 your Council Tax
will go up by up to 100% if your home has been empty for 12
months (or 2 years if it is being advertised for sale or rent).
Sale Option
Maximum Sale Price Maximum Sale Price
Property
Size
Maximum Loan
Amount
Mainland
Arran
1 Bed
£8,316
£65,000
£70,000
2 Bed
£10,098
£70,000
£80,000
3 Bed
£11,880
£80,000
£95,000
4 + Bed
£15,000
£100,000-£180,000
£125,000-£195,000
ty
ay
ore
00
What else do I need to know about the loan?
Your home must have been empty for at least 6 months when
you apply.
•All repair work must be done within 1 year.
•Loans will be secured against the property.
•If you do not keep to the terms of the loan, (for example, if
you miss repayments) an additional charge may be applied.
Rent Option Only
Loans are repayable over a maximum period of 4 years.
•Your home must be rented at an affordable rate for at
least 5 years (the rent levels are shown in Table 1).
•Applicants must register to be a landlord in North Ayrshire.
Are there fees for the loan?
There is an administration fee for the loan of between £150
and £200. The amount you need to pay depends on the
amount that you borrow. The Council will let you know the
cost when you make an application. You may be able to add
the fee to the value of the loan.
Rental Option
Minimum
Monthly Loan
Repayment
Maximum Monthly
Rent (99% of LHA
Rate)
£173.25
£346.50
£210.38
£420.75
£247.50
£495.00
£312.50
£673.20
How do I apply for a loan?
1
2
Contact North Ayrshire Council (see Contact Us
section).
The Council will visit your home and send you a
property condition report.
3
The Council will let you know if the repairs meet
the standard for loan funding.
4
Fill in a loan application form.
5
The Council will process your application and
let you know if it is successful.
6
You arrange for the repairs to be carried out.
7
The Council will visit your home to check that
the repairs have been done.
8
The loan will be paid to you.
9
10
You sell your home or rent it with the Council’s
Rent Deposit Guarantee Scheme.
The loan is repaid (when your home is sold, or
in monthly payments if it is rented).
If you would like more information on the loan, or
for information and advice about empty homes in
North Ayrshire, please contact:
North Ayrshire Council
Private Sector Advice Service
Housing Services
3rd Floor, Cunninghame House
Irvine, KA12 8EE
Phone: 01294 324644 / Fax: 01294 324624
Email: [email protected]
www.north-ayrshire.gov.uk
The Council has the final decision to award a loan
and on the amount of loan offered. The Council may
withdraw the loan fund if there is a change in policy
or if funds are no longer available. The scheme may
also be temporarily suspended to allow the fund to
top up. Further terms and conditions may apply and
will be issued with the loan agreement.
This document is available in other formats such as
audio tape, CD, Braille and in large print. It can also
be made available in other languages on request.