A leading Worcestershire law firm is giving disabled people expert advice to get on the property ladder.
The Government-backed HOLD (Home Ownership for People with Long-Term Disabilities) scheme is available to help disabled people become shared ownership homeowners.
Danielle Fenn, a residential property associate at mfg Solicitors, said the scheme allows people to buy an initial share in a property worth between 10% and 75% of the full market value via a combined mortgage and deposit, with a housing association owning the remainder. In some cases, the mortgage can be covered by a Support for Mortgage Interest (SMI) loan, repaid from equity when the home is eventually sold.
Ms Fenn said: “We’ve been giving advice to people across the region in recent months on the HOLD scheme, which gives people who would otherwise be excluded from home ownership the chance to buy a share of a property. It’s specifically for those with long-term disabilities who need a home that other shared ownership properties may not provide.”
Eligibility depends on criteria including having a long-term disability, which can include physical, learning, sensory, cognitive, or enduring mental health issues. Applicants must be in receipt of certain disability benefits, such as High or Middle Rate Disability Living Allowance, or Higher Rate Personal Independence Payment.
They must also meet strict mortgage criteria, including having a clean credit history, and can only apply if other shared ownership properties don’t meet their specific needs, such as being a ground-floor home.
Ms Fenn, who works closely with the My Safe Home organisation to help people with long-term disabilities realise their property ownership dreams, said those considering the HOME scheme must also be aware of its disadvantages.
She added: “If an SMI loan is used there is a charge placed on the property and any equity left will help to pay it back. However, if there is not enough equity the balance is written off. Other considerations include having to comply with lease terms when selling which could incur fees and cause delays, such as first offering the property to the landlord or another person who is eligible for the Shared Ownership scheme, while successful applicants need to budget carefully to cover annually increasing service charges on rent, insurance and mortgage repayments.”
“The first step is to find a property for sale on a shared ownership basis that is compatible with your needs and apply to the scheme through GOV.UK.”
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