Equity Relocation Loan

The Council offers this loan to owner-occupiers who have to move home due to housing clearance action. It is designed to fund the gap between the compensation received for the existing home and the cost of the new home.

It is however only available as a last resort and only through one of the Independent Financial Advisors on the Council's list.

These advisors will try to find you a suitable commercial loan to fund the gap. If they can't do this the Property Appreciation Loan ('PAL' loan) will be available. The maximum loan is normally £35,000.

A Discretionary Panel consisting of representatives of Newheartlands, Liverpool, Sefton and Wirral Councils will however, in exceptional circumstances, consider cases requesting PAL assistance up to £45,000 or £55,000 in the case of certain new build houses.

No repayments of the loan are made until the property is eventually sold. The loan is secured as a financial charge against the property, as a proportion of the value of the house, when bought.

Upon the sale of the house the same proportion of the resale value is paid back to the Council:

Example

Compensation for existing house: £50,000
Cost of alternative house: £70,000
Financial gap/PAL loan: £20,000
PAL loan represents 28% of the value of the new house

New house eventually sold for a value of: £150,000
28% of the sale value: £42,857
Amount repayable to the Council: £42,857