The Empty Homes Network has been working steadily since the New Year to help encourage lenders to look more favourably on private sector leasing schemes. This follows in the wake of widespread reports of lenders refusing consent to their borrowoers to lease their homes to social housing providers.
Following meetings with the Council of Mortgage Lenders and DCLG we ahve now produced two Guides to help unpick the problem. The first is a general-purpose Briefing explores the benefits and risks of PSL schemes from the lender point of view. This identifies the many benefits of leasing schemes to lenders in terms of protecting and improving their assets.
The second document is a set of Practice Notes that explores in more detail how lenders and leasing organisations can work together to produce the best outcome for all involved. This typically involves incorporating appropriate protections into leases, but we also identify the need for standardisation in the wider framework: there is a project to be undertaken.
The challenge throughout has been to recognise the legitimate concerns of lenders and ensure they are addressed whilst ensuring that providers are not unduly exposed to risk.
In yesterday's Westminster Debate Don Foster MP (Communities Minister at DCLG) Don Foster referred to the work being done by Empty Homes Network. You can review the discussion here:
http://www.publications.parliament.uk/pa/cm201314/cmhansrd/cm130911/halltext/130911h0002.htm#13091140000003
You will need to scroll down to Column 338WH for Andrew Stephenson's debate, where the issue of lender consents is discussed. (You can also see a webcast of the debate)
These documents are available from our library and comments are welcome. Links to the library items follow:
Practice Notes
Lender Briefing