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Kickstart Equity Release Loans - Background


Loans rather than grants

For a number of years government has encouraged all council’s to change from offering grants to loans to help private home owners repair their properties. In Walsall grants for repairs are no longer available except for Health Through Warmth work.

Whilst the responsibility to maintain private homes rests firmly with the owner Walsall Council has been working with the Regional Housing Executive and Black Country Kickstart Partnership for the last 2 years to develop equity release loans for essential repairs for private property owners. These loans are for those who are unable to obtain a loan from ‘normal high street’ lenders.

What is an equity release loan?

Equity release loans are based upon the value of a person’s home and take into account any existing loans / mortgages they already have. How this works;

  • If a property is valued at £100,000 and loans already exist to £50,000 this means that there is potentially up to £50,000 of ‘free equity’ remaining. The Kickstart loans are up to a maximum of 30% of the free equity and therefore would in this situation be up to a maximum of £15,000.
  • If a property is valued at £100,000 and loans already exist to £100,000 this means that there is no equity remaining. In this case no loan would be able to be offered as there is no ‘security’ in the case of ‘property equity’ against which it can be ‘charged’

Kickstart loans are applied as a legal ‘charge’ on the property with repayment conditions attached. This legal charge often called a land charge is similar to the charges that mortgage providers also place on a property.

Isn’t a loan my right?

No. The council through working with the Regional Kickstart Partnership is developing a discretionary equity loan system. The discretion to award a loan rests with the council and our loan partners.

The responsibility to maintain private property rests firmly with the owner.

Kickstart loans are for people who can’t access 'normal high street’ lending.

The council also determines the priority for what loans can be offered towards.

As well as the loans being discretionary they will only be considered if the council has sufficient funds available to offer them.

Please see the current update for funding position.

Councils and Kickstart Partnership Priorities

Each council that is a partner in the Kickstart Partnership is able to set it’s own priorities for what loans can and can’t be used and offered for. These priorities are different across the region. The main reason for this is that the type, age and condition of private housing across the region is different. Each council has the right to set what it thinks should be its own priorities.

Ownership condition

When loans are available you will have had to have owned and occupied your home for at least 3 years to be considered as potentially eligible for a loan.

What can’t be assisted with a Kickstart Loan

We get a lot of questions about things that can’t be assisted with either a grant or loan. The following is a list of things we can’t consider loans for:

  • Satellite / cable TV connections
  • Switching from terrestrial to digital TV
  • Obtaining a water meter
  • Getting a mains gas connection to your home
  • Providing electricity to outbuildings (sheds, etc)
  • Paving driveways
  • New shed or garage
  • Fences and garden walls
  • Re-glazing
  • Whirlpool baths, power showers, hot tubs, bidets, etc.
  • Kitchen items such as fridges, dishwashers, cookers, etc.

We will never assist through a loan where;

  • we consider that the repairs are needed as a result of a resident neglecting to carry out basic maintenance or
  • to repair damage caused by intentional property mis-use
  • property insurance should be in place to cover the relevant repairs.

Further information

Please read the attached frequently asked questions information sheet for more details about Kickstart loans.

Contact us

Housing Standards and Improvement Service
3rd Floor Civic Centre
Darwall Street
Walsall
WS1 1TP

Telephone 01922 652171 or 01922 652172
Fax 01922 652196
Email housingstandardsandimprovement@walsall.gov.uk

This page was last updated on 15 December 2011