If you own a leasehold property in Wales, you’re likely aware of the stresses and struggles of owning a leasehold property, particularly in relation to fire safety and cladding. In 2022, the Leaseholder Support Scheme was launched in Wales to assist property owners in significant financial hardship as a result of fire safety issues affecting their property.
In this article, we’ll explain the key details of the Leaseholder Support Scheme in Wales, including how the scheme works, the application process, fees, requirements and the buyout option.
How the scheme works
The Leaseholder Support Scheme will allow leaseholders to seek independent financial advice to help address their financial circumstances as a result of their leasehold agreements.
An Independent Financial Advisor (IFA) will determine the best course of action based on the circumstances and may even help to progress a sale of a property if this is deemed the best course of action.
The application process
The application process for the Leaseholder Support Scheme in Wales is fairly straightforward and involves applicants taking a series of steps, which we’ve broken down in the sections below.
Take a look at these steps to see how you go about applying for the Leaseholder Support Scheme.
Eligibility
All applicants will be required to complete a straightforward eligibility checker which assesses whether they qualify for help under the Leaseholder Support Scheme. This will involve explaining their circumstances, and if deemed eligible, applicants can apply fully to the scheme.
Submitting your application
To apply for the Leaseholder Support Scheme, you must complete the following application form, which can be found on the Welsh government website here. Completed forms must then be sent to the Development Bank of Wales by one of the following methods:
Email: applications@leaseholdersupportscheme.wales
Post:
Leaseholder Support Scheme
1 Capital Quarter
Tyndall Street
Cardiff
CF10 4BZ
The eligibility checker must be carried out first to ensure that it is worth your application.
Reviewing your finances
Once your application has been submitted, it will be reviewed by an IFA.
As part of this review, a financial assessment will take place to determine if the applicant can move their household out of financial hardship, by which the property will be purchased under the Leaseholder Support Scheme.
The buyout option
In some situations, IFA may agree that the sale of a leasehold property is the most suitable option. We’ve detailed the valuation and purchase processes below to provide more information on how this works:
Valuation process
To provide an accurate valuation of a leasehold property, the IFA will commission an independent Royal Institution of Chartered Surveyors (RICS) valuer. It will be the job of the RICS to use a RICS Red Book Global Standards approach to provide a fair valuation of the property and provide a Market Value.
This will be carried out based on the impact of value due to disregarded fire defects.
Purchase process
If the applicant accepts the valuation, the Leaseholder Support Scheme will put them in touch with a Registered Social Landlord or Local Authority to proceed with the purchase of their property.
Providing that a purchase progresses and is completed, the property will be owned and managed by the Registered Social Landlord/Local Authority as part of their social housing stock.
Fees
The Leaseholder Support Scheme will cover fees for the IFA and will be paid on completion of the assessment.
Up to £750 per application will be paid by the scheme, and additional payments can be made to IFAs at the discretion of the scheme in particular circumstances. Approval must be sought before any work is carried out.
How We Buy Any Home Can Help
If you own a leasehold property in Wales and are looking to sell, We Buy Any Home may be able to help. For landlords that aren’t looking to sell their property with tenants in situ, you can find out how much notice landlords must give when selling in Wales via our website.
Whether you have tenants or not currently living in the property, We Buy Any Home can provide you with a guaranteed sale on your property in a time that suits you with no hidden fees. This is a fast and simple way to sell your home, and includes houses in any location, in any condition.
As the UK’s biggest online cash-buyer of properties, we operate across the UK and can provide you with a free cash offer for your property within minutes via our website. You can receive your funds in as little as just 7 days, and you can choose a completion date of your choice.
Get a free cash offer for your Cardiff property today and allow our trusted team of experts to get your leasehold property sale underway!
