A new loan package for housing co-ops
Co-operative & Community Finance and Triodos Bank and are working together to help housing co-operatives buy property.
After years of unsustainable house price rises, property is becoming affordable again. For housing co-operatives who are ready to buytheir own property, we can help you to make the most of the lull in the housing market, helping you provide affordable, tenant controlled homes for your members.
How does it work?
• Housing co-ops apply for two loans - one from Triodos Bank and one from Co-operative & Community Finance.
• Triodos Bank can lend up to 80% of the value of the house you are buying. Co-operative & Community Finance can lend up to 25%. The exact percentage from each lender will depend on the experience and skills of your members, the type of property you are buying, and whether you intend to do signifi cant work to it.
• You will usually need to contribute at least 5% of the value of the property from your own funds, but we may be able to consider a lower contribution in some cases.
• We may be able to lend against a postworks value if work you do immediately after purchase will significantly increase the property value.
• Triodos Bank will take a first charge on the building and
Co-operative & Community Finance will take a second charge.
• Competitive rates will be offered on both loans and will be determined by the strength of your plan, and the skills and experience among your members.
How to apply
E-mail your plan with the subject: Housing Co-op Loan.
Your application will be assessed by a Relationship Manager at each lender. We’ll discuss your application and let you know if we consider your application viable. If we do, we’ll arrange to visit you.
Alternatively, if you have an enquiry about the loan package and would like to speak to us, call 01179 166750.
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