- The Lilac scheme in Leeds involves 20 new eco-homes, completed in 2013 at an overall cost of £2.7 million. The Mutual Home Ownership approach offers a unique approach to permanent, genuine affordability, with every occupier becoming a member of a co-operative set up to develop and manage the project
- Each member has a lease that gives them the right to democratically control the housing community they live in. Members pay an equity share 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 is set at around 35% of net income
- As members leave, existing members can buy more equity shares, and as people’s income levels change their equity share commitments can also change. If someone leaves sooner than three years then they will not be entitled to increases in the value of their equity shares. The co-operative society keeps a set percentage of any increase in equity to ensure the sustainability of the project
- More detailed information about the Lilac scheme can be found here.
Published in March 2018