Community Housing Shared Equity Scheme

Helping You Buy a Home in Ceredigion

The Community Housing Scheme is a shared equity scheme that helps eligible households buy a home when they cannot afford to do so without support. It reduces the amount you need to borrow through a mortgage.

The Council provides an interest-free equity loan towards the purchase price. The Council retains an equity share in the value of the property until the equity loan is repaid.

Key Points

Available to eligible local residents, key workers and carers or care recipients
Occupiable properties may receive up to 20% of the purchase price
Registered empty properties may receive up to 40% of the purchase price
The maximum purchase price is £300,000 subject to periodic review
You must provide evidence from the seller or estate agent confirming the agreed purchase price
You must provide a minimum deposit of 5% of the purchase price
The Council equity loan is interest free and has no monthly repayments
Owners can staircase by purchasing the Council’s equity share in 5% increments over time
The Council equity loan will need to be repaid by the end of the mortgage period or within 25 years, whichever is sooner. When the equity loan is repaid, you will repay whichever is greater:
- the amount originally borrowed from the Council; or
- the value of the Council's equity share based on the property's current market value
The Council equity loan is secured against the property until it is fully repaid
The scheme cannot be used to purchase a Discount for Sale (DFS) property

Can I Apply?

You may qualify if:

You cannot afford a mortgage for 10% more than the property valuation minus the proposed Council contribution
You meet one of the following: local person, key worker, carer or care recipient requirement
The property will be your only and main home
You can provide a minimum 5% deposit
Do not own another residential property
You meet the financial eligibility requirement

Eligibility Criteria

Don't Have All Your Evidence Yet?

You can still submit your application and provide outstanding documents later.

Applications cannot be fully assessed until all required supporting documents have been received

How Much Support Can I Get?

Use the simple excel calculator to work out how much support you can get

Simple Excel Calculator

Property Type	Maximum Council Contribution
Occupiable property	Up to 20%
Registered empty property	Up to 40%

An occupiable property means a property that is already suitable to live in without major works. A registered empty property means a property that has been recorded by the Council as empty for more than 12 months.

The higher level of support for empty properties reflects the additional costs often involved in bringing them back into use.

Buying an Empty Property

If you buy a registered empty property, the Council may be able to provide an equity loan of up to 40% of the purchase price.

You may also be eligible for:

Separate eligibility criteria apply.

To qualify as an empty property, it must be registered as such by the authority, having been vacant for over 12 months.

Unsure whether a property is registered as empty? please contact the Planning Policy team at CTC-CHS@ceredigion.gov.uk

01545 570881

Repaying the Council's Equity Loan

When the Council's equity loan is repaid, you will repay whichever is greater:

The original amount borrowed from the Council; or
The value of the Council's equity share based on the property's current market value.

Example

The Council provides a £50,000 equity loan.

At Purchase	On Sale
Property Value £250,000	Property Value £300,000
Council Equity Share £50,000	Council Equity Share £60,000

Because the property value increased by 20%, the value of the Council's share also increased by 20%.

Council Charge on the Property

The Council's equity loan will be secured by a legal charge against the property. The charge will remain in place until the Council's equity loan has been repaid in full.

Buying More of Your Home (Staircasing)

Staircasing allows you to purchase the Council's share and reduce the Council’s equity loan.

Additional shares may only be purchased in 5% increments
Staircasing is usually available after years 5, 10, 15, 20 and 25
Earlier requests may be considered where affordable
A property valuation will normally be required

How To Apply