Purchase assistance loans
Assistance for owners affected by clearance and demolition projects
The Purchase Assistance Loan or PAL is an equity-based loan, which can be offered to those owners affected by clearance to assist them in purchasing a replacement property in East Lancashire. Instead of making regular monthly repayments, the borrower makes one lump-sum repayment when they terminate the loan. The amount of the repayment is based on the change in value of the property over the life of the loan.
Eligible borrowers can receive a loan of up to 50% of the replacement value of their home subject to a cash ceiling of £30,000.
Clients must be owner occupiers whose homes are being purchased or voluntarily acquired by the Local Authority for clearance in Housing Market Renewal Intervention Areas. Owners must have been living in the home on the date when the property/area was agreed for clearance.
Residents who are required to move to support the clearance programme e.g. to assist with decanting will also be eligible.
The owner may take a loan of up to 50% of the value of the replacement home and must use their home loss payment as part of the deposit.
The maximum cash loan is £30k. In exceptional circumstance and at the discretion of the Head of Housing Regeneration a maximum of £40k may be allowed but this must fall within the 50% value of the replacement home limit.
For further information on Purchase Assistance Loans, contact us.