Community Interest Company (CIC) used for Housing Development

tash_moore

I'm looking to buy a property at Little Kelham in Sheffield and I have tried to research other instances of a CIC (Community Interest Company) model being used outside of a social housing context, but have found very little information online. It seems to be an unusual choice for a housing development. Does the CIC model overcomplicate freehold ownership? Are there any disadvantages? It would be great to hear any opinions on the matter!

Many thanks for taking the time to read this!

AdrianC

How the developer structures their business does not affect your ownership post-purchase.

tash_moore

AdrianC said:

How the developer structures their business does not affect your ownership post-purchase.

Thanks so much for your response, Adrian. The developer would not hold the CIC, it's the homeowners.

AdrianC

tash_moore said:

AdrianC said:

How the developer structures their business does not affect your ownership post-purchase.

Thanks so much for your response, Adrian. The developer would not hold the CIC, it's the homeowners.

Presumably, the CIC is just the management company for common areas of the development, if the property itself is freehold?

tash_moore

Hi Adrian, they say "The Community Interest Company is funded by Little Kelham residents. When you buy a Citu home, you’ll pay a £3,000 bond (that’s the equivalent of purchasing the freehold). This allows the Community Interest Company to own the freeholds, which means they’ll never be sold off to another company.