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.

LifeIsShort_Really

I appreciate this is an old thread, but I am a volunteer resident director of a community interest company on a housing estate. If anyone has questions, please let me know.

SarahB16

I appreciate this is an old thread, but I am a volunteer resident director of a community interest company on a housing estate. If anyone has questions, please let me know.

I would love to know more about your housing estate (of course only what you are willing to freely share).

Some questions I have (and just ignore the ones you don't wish to answer).

1. What is the community interest / community benefit - what are you wishing to achieve or perhaps continue to retain?

2. How many homes are on the housing estate that form the community interest company? Are the homes open market or affordable? Owned or rented?

3. Do you have any covenants/restrictions associated with living on your housing estate? Did you encounter any issues from mortgage lenders if you have these restrictions?

Thank you @LifeIsShort_Really for anything you are willing to share (no need for details such as location but would be helpful to know if you are in England).