The aim of the Council scheme is to provide financial help for those who can least afford to pay for the works to their homes. Therefore you will be subject to a "means test". Any amount of Loan received will be the difference between the amount you are assessed as being able to afford and the total cost of the eligible works, subject to maximum limits.
South Hams District Council has decided to use the test of financial resources made under the Housing Grants, Construction and Regeneration Act 1996 (as amended) for working out your contribution to a Renewal Loan. This is the same as the test used currently for all mandatory Disabled Facilities Grant Applications.
Applying the test:-
If you receive Income Support or Pension Credit Guarantee you will not normally need to make any contribution to the cost of the works.
However, in all other cases, the test will normally apply to you and to your spouse or partner; it will apply to both of your incomes and savings. In the case of joint owners who are not married or who do not live together as husband and wife, the test will be applied to each of the owners individually.
The test calculates the average weekly income, taking account of any savings above £6,000 (savings below this are ignored, as are certain state benefits). This income is then set against an assessment of your basic needs which are recognised by a range of allowances.
If your resources are less than this assessment, then you will not normally need to contribute to the cost of the works. If you are on income support or income-based job-seekers allowance, you will not normally have to make a contribution, although this will not necessarily be the case if anyone else is being assessed.
If your resources are more than the assessment, then a proportion of your income will be used to calculate the size of loan you can afford to finance the works. This 'affordable loan' is then deducted from the cost of the works and assistance will be given to cover the remaining cost, if any. Therefore, in practice, the amount of Council loan is equal to the cost of the works minus the 'affordable loan' calculated.
What do I have to do to get a Loan?
- Enquiry forms are available from the Council. Please complete the form and send it in. You will then be contacted and told what to do next.
- An application must be made on the correct form which must be completed in full and accompanied by the supporting documents required.
At the Application stage: -
- You should ensure that you separately secure any approvals required under building regulations, planning laws - including Listed Building requirements and the Party Wall Act 1996.
- Loans will not be given for works which have already been carried out.
- You will be asked to state on the application form that you intend to live in the house as an owner-occupier. This is a Loan Condition, breach of which can trigger a demand for repayment of the Loan. You will also be asked to show that you have lived in the property for the previous three years in the case of a Renewal Loan, or one year in the case of a Minor Works Loan.
- Two itemised, competitive estimates for the necessary work will be required. Where the works cost over £10,000, three estimates are required.
Loan approval
The Council will give you a decision in writing within six months of receipt of a completed valid application.
Approval is subject to the following :-
- you must complete the works within 6 months of the approval date, unless the Council allows you extra time; and
- you must not use a contractor if you did not submit their estimate with your application, unless the Council agrees to allow you to change.
If you disobey either of these conditions the Council may refuse to pay the Loan.
Other conditions apply, for example: -
- before you sell the property, you must tell the Council; and
- the property must be your only or main home, occupied by you or your spouse/partner.
If you are likely to need to break either of these conditions, you must tell the Council who will be able to let you know whether you will have to repay the Loan. The "sale" of the property means a conveyance of the freehold or an assignment of the lease or the grant of a lease (other than a mortgage term) for a term of more than 21 years assuming that any option to renew or extend the lease is exercised, and that any option to terminate the lease is not exercised or the grant of an option to purchase. You will be advised of the full list of conditions when you are given application forms.
Loan payment
- Loans will only be paid when the Council agree that the work required has been finished properly. But please note that you are responsible for making sure that your builder meets the standard that you require.
- Loans can only be paid when an acceptable invoice, demand or receipt of payment for the works is provided. An invoice is not acceptable if it is for work or services carried out by you or a member of your family. Where the work is carried out by you or your relative, only invoices for materials or services bought in will be acceptable.
- The Council may pay the loan in full on completion of the works or by instalments as the works progress.
- You may request the Council to make a payment direct to your contractor. This should not affect your right to make sure that the contractor has completed the works to your satisfaction. If you are not satisfied with the contractor's work, you should notify the Council so that they can withhold payment, as appropriate.
This leaflet is a summary of assistance which may be available. If you are in any doubt about how this applies to your need, please contact the Environmental Health Section of the Council to discuss your situation. If you have any complaints about the service these should be addressed in the first place to Mr I J Bollans, Head of Environmental Health.
South Hams District Council acknowledges its responsibility under the Commission for Racial Equalities and Equal Opportunities legislation, under relevant codes of practice and advice, i.e. Commission for Racial Equalities Standards for Local Government. Our aim is to make sure that no user of our services receives less favourable treatment on the grounds of ethnic origin, gender, marital status, religion, sexual orientation, employment status, disability or age.
All our publication are available in alternative formats, such as large print or a language other than English. Please contact Customer Services 01803 861234 or Email customer.services@southhams.gov.uk |
