Clapham Park Development Share this post Home » Regeneration » Leaseholder Buybacks Leaseholder Buybacks Whether you are a resident leaseholder or non- resident leaseholder (don’t live in your property), if your home is due to be demolished as part of the regeneration, we will work with you in order to make the process as smooth as possible. Each leaseholder will be allocated a specific Project Officer to liaise with, so that they can understand your needs and requirements. There are a number of options that are available to leaseholders, which are detailed below. However, the basic principles are: you will receive open market value for your property (determined by an Independent RICS Valuer) resident leaseholders will receive 10% of the value of your home, as a home loss payment reasonable disturbance costs, will be covered by MTVH. Some items will require quotes in advance, but disturbance costs include (but are not restricted to); legal fees for the conveyance, removal fees , post redirection. If you would like to speak to a member of the MTVH team regarding leaseholder buybacks please get in touch: Email: Claphambuybacks@mtvh.co.uk Tel: 020 3 535 5000 Option 1 - Home with a loan (part exchange on new build at Clapham Park) This option is available to all leaseholders who use their property as their only or principal home and who have lived in their property for 12 months immediately preceding the date of sale. This option is subject to there being a suitable home available to buy at the time when we need to buy your property. We buy your current flat and you purchase and move to one of the new private homes to be built on the estate. We pay full open market value, as assessed by an independent RICS Valuer, for your flat. You receive a ‘Home Loss’ payment of 10% of the value of your flat subject to a current maximum of £64,000. You will be expected to take out a mortgage or loan for any difference between the payment you receive from us and the cost of your new home. You receive a disturbance payment to reimburse you for the reasonable costs of moving, currently up to £4,000. Option 2 - Equity Share on new build at Clapham Park This option is available to all pre-transfer leaseholders who use their property as their only or principal home and who have lived in their property for 12 months immediately preceding the date of sale. This option is subject to there being a suitable home available to buy at the time when we need to buy your property. We buy your current flat, paying the full open market value, as assessed by an independent RICS Valuer. You receive a ‘Home loss’ payment of 10% of the value of the flat subject to a current maximum of £64,000. You also receive a disturbance payment to reimburse you for the reasonable costs of moving, currently up to £4,000. We grant you a lease on a shared equity basis on one of the new homes to be built on the estate. The minimum ‘share’ you can buy of the new property is the value of your current home plus half the ‘Home loss’ payment. However, the share must be at least 60% of the value of the new property. You can choose to buy a larger share if you wish. You do not have to pay any rent on the share of the property you do not own. You are responsible for the full cost of maintaining the property, such as the service charges, repairs and for insuring the property as for a normal leasehold property, even though you only own a part of the equity. Example of Equity Share: Current flat value: £250,000 Home Loss Payment: £25,000 Total: £275,000 Value of new property to be purchased: £325,000 Leaseholder pays Value of previous flat: (£250,000) Home Loss Payment: (£12,500) Difference between leaseholder contribution and full value of new property: £62,500 Leaseholder share: 81% Metropolitan Clapham Park’s share: 19% Option 3 - Shared Ownership in Clapham Park This option is subject to there being a suitable home available to buy at the time when we need to buy your property. This option is available to all pre-transfer leaseholders who use the property as their only or their principal home and have lived in the property for 12 months immediately preceding the date of sale. It is the same as for Option 2, except that you have to pay rent on the percentage of equity that you do not own. This is called Shared Ownership. This option is available to leaseholders who cannot afford 60% of the value of the new property they wish to purchase but who can afford to buy a minimum share of 25% and pay the other associated costs of a Shared Ownership home. Option 4 - Shared Ownership outside Clapham Park This is the same as Option 3, except that you would purchase equity away from the estate on a designated MTVH Shared Ownership site. This is subject to availability and negotiated agreement with the relevant Local Authority. Leaseholders over the age of 55 may be able to purchase a home in a leasehold scheme for older people, which offers a fixed equity in a purpose-designed scheme. This nationwide scheme is intended to give older leaseholders the chance to release some equity to supplement their income. Option 5 - Become a tenant This option is available to all pre-transfer leaseholders who use the property as their only or their principal home and have lived in the property for 12 months immediately preceding the date of the sale. The option is dependent on your personal circumstances and is only available to leaseholders who are unable to cope financially with owner occupation or because of age or vulnerability. Leaseholders who wish to take up this option will be required to see an Independent Financial Advisor. We rehouse you as an assured tenant in one of the new-build or refurbished homes (or elsewhere if you need specialist accommodation, such as sheltered or extra care housing). These options are subject to availability. We buy your home at full open market value, as assessed by an independent RICS Valuer. We pay you a ‘Home Loss’ payment of 10% of the value of the flat up to a maximum of £64,000 We also pay you a disturbance payment for the reasonable cost of moving Option 6 – Leave Clapham Park This option is available to all pre and post-transfer leaseholders and is the only option available to non-resident leaseholders. You may choose to buy another property on the open market or to make other accommodation arrangements. We buy your current flat and you move off the Clapham Park estate. We pay full open market value, as assessed by an independent RICS Valuer for your flat. Capital Gains Tax – For Non Resident Leaseholders who may have concerns about having to pay Capital Gains Tax, MTVH have obtained Rollover Relief from HMRC in this respect, for a 12 month period after completion. Your Project Officer will be able to provide the necessary letter of confirmation to your solicitor on this matter and will be able to talk you through details of the letter. Financial advice cannot be provided by Project Officers and Non Resident leaseholders should take appropriate professional advice on this matter. MTVH will consider covering the cost of this advice, if the fees are sent to us in advance of appointing a person / company, for approval and relate to this particular transaction.