Building a neighbourhood which is affordable and accessible is a real priority for us. There is much talk of a crisis of affordability in terms of housing. A recent government document highlighted the need to build 70,000 affordable homes per year by 2011. House prices are still much higher than average earnings and the house price to income ratio in the UK is 4.43 (average weekly earnings are £749.93 and average house prices are £172,593).

LILAC responds to this situation. We aim to build 20 homes, which will be managed as part of a mutual home ownership scheme. A MHOS is a new way of owning a stake in the housing market. It is designed to bring the bottom rung of the property ladder back within reach of households on modest incomes in areas where they are priced out of the housing market. It is designed to remain permanently affordable for future generations. Members of the company are the residents who live in the homes it provides. The company and not the individuals obtain the mortgage and so borrowing will be cheaper.

Each member has a lease which gives them the right to democratically control the housing community they live in. Under the terms of the lease, members pay an equity stake to the co-operative and retain equity in the scheme. After deductions for maintenance, insurance etc, these payments pay the mortgage. The payment that leaseholders pay each month and the number of equity stakes they hold depends on how much they earn. Monthly payments are set at around 35% of net income.

As members leave, existing members can buy more equity stakes, and as people’s income levels change their equity stake commitments can also change. Members are encouraged to stay for at least three years, and if they leave sooner then they will not be entitled to increases in the value of their equity stakes. The company keeps a set percentage of any increase in equity to ensure the sustainability of the project.

For more information read -  What is a MHOS? in FAQs.

Is the project affordable for me??

The net household income required to live in a Lilac property varies depending on property size, garden or balcony size and for the flats which floor they are on.

The tables below show the range of incomes able to afford to live in Lilac

If you wish to discuss your particular finances please use email our treasurer

Paying more at the start than just a 10% deposit can reduce the minimum income required to live in the project. The table below gives you an idea of how savings can help you afford to live in the project but  is subject to property availability.