1. HOME OWNERSHIP FOR ELDERLY PEOPLE WHO RELY ON STATE BENEFITS David Abbey – Director MySafeExtraCare

2. AGENDA Introduction & Background ECH Future Challenges Shared Ownership how it works Affordability The MySafeExtraCare Solution Next Step

3. INTRODUCTION & BACKGROUND Another housing option, provides companionship (good social life), independence and long term security Some unsold Extra Care Housing (ECH) Local Authorities have more applicants for rental ECH than rental properties MySafeExtraCare team has over a decade of providing mortgages for people who have a disability and rely on state benefits

4. ECH FUTURE CHALLENGES Less Grants in future More mixed tenure Higher %age sales required Buyers frequently have shortfall on ECH purchase price

5. SHARED OWNERSHIP Buy some of property (with mortgage up to 100% of share) Rent the remainder off H/Ass Mortgage paid by (SMI) Support for Mortgage Interest Rent paid by Housing Benefit Both benefits in addition to existing benefits Owner pays “top up” mortgage

6. HOW IT WORKS 55-75 years of age must have support needs (DLA/AA), plus other benefits 75+ with or without support needs, must be in receipt of PCG Alteration of lease by H/Ass

7. Property Value £240,000 Housing Association Shared Ownership 30% 70% Sale Rent £72,000 £380/m Service Charge – Housing Association (Repairs & Maintenance) £130/m

8. BUY ▲ Fees - £4,000 approx ▲Mortgage £72,000 Rent = £380/m Housing Benefit > H/Ass Service Charge = £130/m Housing Benefit > H/Ass Mortgage Interest charged by the Building Society= £365/m Paid by SMI benefit direct to Building Society= £218/m Top up paid by Home Owner direct to Building Society = £147/m

9. MORTGAGES SMI major points: New home better suited to their needs In receipt of other qualifying Benefits (13 weeks) Most mortgages up to £100,000 Benefit pays interest only Mortgage “Top up” from home owner

10. RISKS Adults living with the home owner (inc. children/older relatives) who are not live in care and support – could reduce or cancel SMI and Housing Benefit Affordability

11. THE MYSAFEEXTRACARE SOLUTION Pre mortgage application Solution presentation Mortgage accelerator Mortgage payment support Legal assistance

12. NEXTS STEPS Consider Home Ownership in ECH for people who rely on state benefits Contact: David Abbey – Director MySafeExtraCare Tel: 024 76 403020 davidabbey@mysafeextracare.info