Appendix 9. Scenarios

Mr Green has a gross income of £18,000 a year and wants to live in a 1 bed property.

He can finance equity shares of the value of £63,371 (the build cost is £60,697).

He would have to pay a deposit of 10% of the equity shares which would be £6,337.

35% of his net income would be £5,404 per year. This would be paid to LILAC with £523 going towards the insurance, maintenance and service of the project and £4,882 as equity payment.

Ms Purple and Mr Yellow and their 2 children want to live in a 3 bed property. Their household gross income is £35,000. They can finance equity shares of the value of £121,237 but they are only allowed to finance a maximum of the build cost +10% which is £103,604. They would have to pay a deposit of 10% of the equity shares which would be £10360. 35% of their net income would be £10,150 per year. This would be paid to LILAC with £811 going towards the insurance, maintenance and service of the project, £7,981 as equity payment and £1,358 to the sustainability/affordability fund.

Miss Brown, Miss Red, and Miss Black want to live in a 4 bed property. Their household gross income is £65,000. They can finance equity shares of the value of £200,444 but they are only allowed to finance a maximum of the build cost +10% which is £128,930.

They would have to pay a deposit of 10% of the equity shares which is £12,893.

35% of their net income would be £16,450. This would be paid to LILAC with £1,009 going towards the insurance, maintenance and service of the project, £9,932 as equity payment and £5,509 to the sustainability/affordability fund.

Mr Maroon is retired and has a gross income of £7,000 a year and wants to live in a 1 bed property. With this income he can finance equity shares of the value of £23,890, but the minimum value of equity squares that must be financed is the build cost minus 10% which is £54,628. He has savings of over £40,000. He can pay for some of the equity shares in full at the start and then make regular payments towards the rest of the equity shares. For example he could purchase £35,000 equity shares in full and finance the rest through his annual payments and deposit. He would have to pay a deposit of £35,000 and 10% of the equity shares which would be £1,963. He would then pay £2,034 per year £523 going towards the insurance, maintenance and service of the project and £1,512 as equity payments.