R3 from Heylo Housing
'R3' is all about releasing capital from existing shared ownership properties, retaining management and recycling receipts to maintain financial viability, improve operating efficiency and create sustainable asset management to drive delivery of new affordable housing.
Using your existing shared ownership assets to fund new supply makes great use of embedded grant and property value which is not currently recognised by most sector funders and may otherwise take many years to be released through natural staircasing by leaseholders.
Our 'R3' model releases significantly more from shared ownership assets than sector lenders would typically advance as well as more than current book values. By maximising this embedded value, shared ownership Landlords can release much needed capital to alleviate financial pressures or fund new affordable housing supply.
Embedded Grant will be eligible as RCGF and any surpluses can be used for new delivery.
If desired, management of the property and customer remains with you for the length of the longest lease and so the all-important customer/manager relationship continues unaffected.
'R3' is designed to be a simple "release, retain and recycle" process for the delivery of new affordable housing as follows:
1) Complete an R3 template with basic portfolio information
2) Heylo Housing undertake initial valuation and due diligence
3) Heylo Housing submits a formal offer, subject to further due diligence and title checks
4) Customer consultation
5) Legal due diligence
6) Completion and receipt of funds ready for re-investment
7) Continued customer management (if desired)