Product details
The loan is open to any charitable, voluntary or community group wishing to take on and develop a community asset transferred to it under this Government scheme.
It is a fixed rate loan of 1% above the Bank of England base rate.
The loan is designed for borrowing of between £100,000 and £6 million on either a leasehold or freehold property. It can be for any amount between these figures, subject to it not exceeding a maximum of 80% of the total value of the property.
The term of the loan can be for any period up to a maximum of 25 years. Where the property is leasehold, there must be more than 35 years remaining on the lease at the time of the final repayment date.
We will require the first legal charge over the freehold or leasehold property transferred.
There is a non-refundable arrangement fee of £1,000. In addition, the buyer will need to pay all the security and legal fees incurred in setting up the loan*.
* Because of the special nature of loans under this scheme, we are in discussions with several of our professional advisors and hope to be able to offer preferential fees to applicants applying for loans under this scheme.
