Empty homes interest free loans

What is the loan for?

The interest free loan of up to £15,000 is to help meet the cost of improvements and repairs to bring the property up to the Durham Housing Standard (PDF, 109 KB). In return, you must agree to let the property until the loan has been repaid in full.

Eligibility

1. You must be over 18 years old.
2. You must be purchasing or own a property that has been empty for six months or over.
3. The property must be in council tax band A or B.
4. You must be the registered owner of the property.
5. You must agree to let the property until the loan is repaid in full.
6. You must have no monies outstanding with Durham County Council and you must be a fit and proper person in terms of the Housing Act 2004. This also includes licensing of properties in designated areas.
7. You must be, or become, a member of The Durham Rental Standard Scheme (DRS) for the duration of the loan and operate in accordance with the Code of Conduct.

Conditions of the loan

1. All loans are subject to an administration fee of £250. The maximum loan amount is £15,000 excluding the loan fee.
2. The loan must be repaid in instalments during a prescribed period (up to five years, or paid in full, for which there is no early repayment charge).
3. You agree to a charge being registered against the property at the HM Land Registry under the Land Registration Act 2002 until the loan is repaid in full. If you cancel the loan after this charge has been registered, you will have to pay a cancellation fee of £50 (per loan cancelled).
4. Only those works identified within the inspection check list accompanying the loan offer will be subject to loan assistance.
5. You must have buildings insurance for the property throughout the term of the loan and provide a copy upon request.
6. You must agree to fund any works required over and above the agreed loan amount.
7. You must complete the work within six months of the loan approval.
8. The property must be occupied by a tenant within three months of the work being completed. 
9. The works should be carried out by the same contractor who supplied the itemised estimates.
10. You will be eligible to advertise your property through our Durham Key Options, Choice Based Lettings System. We will discuss this with you on our initial visit.

Who can do the work?

You can choose your own builder to estimate and carry out the works. However, if the works are carried out by you or your family, only material costs are eligible for the loan.

How to apply

1. Contact us for more information and an application form.
2. Complete and return the application form to us.
3. When we receive your application form, we'll contact you to arrange an inspection of the property where we'll agree the scope of the work with you.
4. Following this, you will receive a list of agreed works needed.
5. Submit estimates to us, in line with the list of agreed works needed.
6. When we have all of the information, we will process your application.

At any stage of the process, if your application is deemed unsuitable, we will write to you to explain why.

How is the loan paid out?

Once the works are completed, we will visit to ensure it has been finished in line with the original agreement. We will then pay your chosen contractor directly on receipt of an acceptable invoice. If your contractor requires part payment as the work proceeds, we will organise this for you.

Please note your home maybe at risk if you do not keep up repayments on a mortgage or any other loan secured against it.

If you need financial help to complete improvements and repairs to bring your new home up to the Durham Housing Standard (PDF, 109 KB), you may be eligible for an interest free repayment loan of up to £15,000. This is repayable over a maximum of five years.

The loan is secured on the property, so if you move before the five years are up, you will need to repay the amount in full. 

Eligibility

​The eligibility criteria for these loans are:

1. You must be over 18 years old.
2. You are purchasing (or have purchased) a property that has been empty for six months or over, however a loan cannot be approved until you are the registered owner of the property. 
3. The property must be in council tax band A or B.
4. You agree to occupy the property for a minimum period of five years as your main residence.
5. You must notify the council of the date you move into the property.
6. You must have no monies outstanding with Durham County Council.

Conditions

Conditions of the loan are:

1. All loans are subject to an administration fee of £250. The maximum loan amount is £15,000 excluding the loan fee.
2. The loan will be repaid in instalments during a prescribed period (up to five years or paid in full of which there is no early repayment charge).
3. You agree to a charge being registered against the property at the HM Land Registry under the Land Registration Act 2002 until the loan is repaid in full. If you cancel the loan after this charge has been registered, you will have to pay a cancellation fee of £50 (per loan cancelled).
4. Only those works identified within the Inspection check list accompanying the loan offer will be subject to loan assistance.
5. You must have buildings insurance for the property throughout the term of the loan and provide a copy upon request.
6. You must occupy the property within three months of completion of the works.
7. You must agree to fund any works required over and above the agreed loan amount.
8. The eligible works should be completed within six months of the date you were notified of the charge being registered against the property.
9. The works should be carried out by the same contractor who supplied the itemised estimates.

Who can do the work?

You can choose your own builder to estimate and carry out the works. However, if the works are carried out by you or your family, only material costs are eligible for the loan.

How to apply

1. Contact us for more information and an application form.
2. Complete and return the application form to us.
3. When we receive your application form, we'll contact you to arrange an inspection of the property where we'll agree the scope of the work with you.
4. Following this, you will receive a list of agreed works needed.
5. Submit estimates to us, in line with the list of agreed works needed
6. When we have all of the information, we will process your application.

At any stage of the process, if your application is deemed unsuitable, we will write to you to explain why.

How is the loan paid out?

Once the works are completed, we will visit to ensure it has been finished in line with the original agreement. We will then pay your chosen contractor directly on receipt of an acceptable invoice. If your contractor requires part payment as the work proceeds, we will organise this for you.

Please note your home maybe at risk if you do not keep up repayments on a mortgage or any other loan secured against it.