Conditions attached to all loan assistance

These conditions are applicable to the following loans:

• Home Investment Loan
• Home Repair Loan
• Croydon Energy Loan

They will apply from the date of approval of the loan and will be registered as a local land charge/land registry charge. They are binding on any person who is for the time being an owner of the premises concerned.

Disposal of the dwelling:

If an owner makes a relevant disposal (whether by sale, assignment, transfer or otherwise) of the whole or part of the premises or dwelling to which the application relates, he shall re-pay the Council on demand the amount of loan that has been paid. An owner is required to notify the Council forthwith in writing of his intention to make a relevant disposal and to give the Council any information reasonably requested by them in that connection. 

Notes

1. Repayment will not be required immediately where a joint owner(s) dies and the dwelling is reregistered solely in the name(s) of the surviving proprietor(s) but the condition will continue to apply.
2. If an applicant gives some other person the right to require the dwelling to be disposed of, he will be held to have made a relevant disposal to that person.
3. A voluntary repayment of the amount of grant may be made at any time in full by the owner for the time being or by a mortgagee entitled to exercise a power of sale whereupon all grant conditions shall cease to be in force,
4. On repayment of the sum demanded following a relevant disposal the conditions shall cease to
   be in force.

Definitions

1. ‘Date of Approval’ means the date on which the application for grant is formally approved.
2. Disposal, whether of the whole or part of the premises is a ‘relevant disposal’ if it is:-
(a) sale of the freehold or an assignment of the lease or
(b) the grant of a lease (other than a mortgage term) for a term of more than 21 years
otherwise than at a rack rent or
(c) any other form of sale, assignment, transfer or disposal.

Smoke alarms

It is a condition of this loan that, where works of electrical rewiring are carried out, mains operated, battery back-up smoke alarms are provided. In all other cases, smoke alarms with a 10 year life battery must be fitted, where no pre-existing alarms exist.

Insurance and compensation claims

Where the proposed works are subject to an insurance claim or a claim against a third party we may consider an application for loan assistance. The applicant shall take reasonable steps to pursue insurance claims or legal claims relating to the eligible works and shall repay the loan, so far as is appropriate, if the claim is successful.
In the event of failure to make repayment when a claim is successful the Council will demand repayment of the appropriate amount together with interest.

As claims can be protracted there is no time limit attached to this provision. In determining the amount to recover, the terms of settlement received by the applicant will be fully considered.

Carrying out and completion of works:

In approving an application for a loan the Council will require as a condition of payment of the loan that the eligible works are carried out in accordance with such specifications as they determine.
The eligible works must be carried out within 6 months from the date of approval of the application. The Council in extenuating circumstances may extend this period.
The eligible works must be completed to the satisfaction of the council and acceptable invoices, demands or receipts for the works and any preliminary or ancillary services or charges must be provided. An invoice, demand or receipt is not acceptable if given by the applicant or a member of his family.
Unless the Council directs otherwise, the eligible works must be carried out by the contractor whose estimate accompanied the application.

Applicant ceases to be entitled to the loan:

Where an application for a loan is approved but it subsequently appears to the Council that the applicant was not entitled to that loan the Council will not pay the loan or any further instalments, where one or more have been paid.

The Council will demand repayment of the loan plus interest from the date it was paid until repayment:

(a) If an applicant ceases to have a qualifying owner’s interest or ceases to
have the intention set out in the owner-occupation certificate accompanying the
application, or
(b) If an applicant (landlord) ceases to have the duty or power to carry out the works

(c) If the landlord of a property subject to a tenant’s application ceases to have the intention set out in the certificate of intended letting accompanying the application, or

(d) If it appears that on completion the property will not be free of category 1 hazards, will not meet the Decent Homes Standard, or the financial and other arrangements for carrying out the works are not satisfactory, or the giving of grant is no longer the most appropriate course of action.

Certificate of Future Occupation

Owner’s application - The owner must sign an owner-occupation certificate which certifies that they have, or propose to acquire, a qualifying owner’s interest in the property and that they intend that they or a member of their family will live in the property as their, or that family member’s only or main residence.

NOTES:
(a) An owner’s interest or a qualifying owner’s interest means a freehold interest or leasehold interest where there is at least 5 years of the lease remaining, and a duty or power to carry out the relevant works.
(b) The Council may at any time serve a notice on the owner of the dwelling requiring a statement showing how the condition of occupation is being fulfilled.
(c) In the event of any breach of the certificate of future occupation, including not complying with the intention set out in the certificate, the Council will demand repayment of the loan together with interest from ‘the certified date’.
DEFINITION:
(a) ‘Certified Date’ means the date certified by the Local Authority as the date on which the execution of the eligible works is completed to their satisfaction.

Mortgagee repossessions:

Where a mortgagee exercises their right to sell the property, we will seek to recover the full loan amount.

To keep the property free of category 1 hazards, in a good state of repair and up to the Decent Homes Standard :

The recipient must ensure that the property is kept free of category 1 hazards, in a good state of repair and meets the Decent Homes Standard following satisfactory completion of works.

Death of applicant:

Where the applicant dies after liability has been incurred for any preliminary or ancillary services or charges, the Council may pay loan assistance in respect of some or all of those matters and a charge will be registered accordingly.

Where the applicant dies after the relevant works have begun and before the certified date of completion, the council may pay loan assistance in respect of some or all of the works already carried out and other relevant works covered by the application.

Any reference to the applicant shall be construed in relation to any time after their death as a reference to their personal representatives.