How does the scheme work?

Our approach

The Home Improvement Scheme enables low-income homeowners whose homes require repairs or adaptations to finance the works they need.

Our approach is centred around your needs and circumstances  We manage the entire process to make everything as easy and stress-free as possible whilst you stay in contol of what happens to your home.

 
London Rebuilding Society is a social enterprise not a commercial business. We aim to find solutions which benefit people and the environment.  

How does the scheme work?

1. If your home needs refurbishing but you cannot afford to pay for the works then you can arrange a meeting with one of our housing team.
   
   
2. If you want to find out more then you meet an independent Financial Capability Coach who explains all the alternative options available and makes sure you are claiming all the benefits and grants you are entitiled to.
   
   
3. If you think London Rebuilding Society is right for you then you sign the contract and we arrange an independent survey and valuation of your home.   You can then choose which works you want done and by which builder.
   
   
4. We pay for everything upfront, project manage the works and help arrange any temporary storage or accommodation you need
   


5. When the works are finished you move back into your home now warm, dry, safe and secure.
   


6. When you finally come to sell your home you pay us back using the proceeds from the sale (see below for more detailed information)

How are the works paid for?

Works are financed through an equity reversion mechanism known as an equitable mortgage. London Rebuilding Society pays for all costs upfront.  We work out what those costs are as a percentage of the improved value of the property.  Then, when the homeowner sells their home they pay London Rebuilding Society the same percentage of the value on sale.

For example: If the value of your property after improvements is £300,000 and the cost of improvements £30,000 then the percentage equity you owe London Rebuilding Society is 10%.

This means that the amount to be repaid when the property is sold will be 10% of the proceeds from the sale. So, assuming you sell your property for £300,000, London Rebuilding Society will receive 10% of the proceeds of the sale i.e. £30,000.

If the market value you achieve on a sale is more than £300,000 it will be 10% of the larger figure. If it is less than £300,000, LRS will be repaid the actual cost of the works.