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Forward funding of Extra Care apartments for affordable rent and shared ownership at Freshwater, Isle of Wight

  • FAH achieved legal completion in March 2019 with Morgan Ashley Care Developments LLP for the acquisition of 75 x 1 and 2-bed new build Extra Care apartments for older people at Freshwater, Isle of Wight
  • Planning permission approval with signed Section 106 Agreement in place
  • Homes England grant of c.£4.3m secured to support development
  • Start on site achieved in March 2019, target completion date November 2020

Background

This project builds on the existing relationship with Isle of Wight Council (IoWC) supported by Homes England, to deliver appropriate housing for older people.  The Council has identified a strong evidence-backed demand for at least 700 new Extra Care homes on the Island. IoWC’s older persons housing strategy focuses on independence, where support and care are provided at home or close to home, as opposed to institutional or residential based care. There is also considerable financial saving to the Council’s adult care and health budget.

The proposal is for the erection of an Extra Care housing scheme consisting of 75 x 1- and 2-bed apartments along with extensive ancillary spaces (including restaurant/café, lounges, scooter/cycle store, assessment rooms, and external car parking spaces). The site came with the benefit of planning permission, secured by the previous landowner, to deliver 60 retirement apartments for private sale with no Section 106 obligations. The current proposal delivers a 100% affordable development on a rent and shared ownership basis, for older people. This provides additionality of affordable homes.

Southern Housing Group have signed the Agreement for Lease to provide housing management services. They will also provide domiciliary care services to residents either through a contract procured by IoWC or by direct payments from self-funding individuals. Morgan Ashley Care Developments will undertake the project and at practical completion deliver the property ready for occupation under the signed lease

Deal Summary

  • Acquisition through forward funding of 45 x 1-bed and 15 x 2-bed Extra Care apartments for rent; and 15 x 2-bed apartments for shared ownership at Freshwater.
  • The transaction will be supported by an affordable housing grant of c.£4.3m from Homes England allocated directly to FAHHA.
  • Planning permission in place and signed Section 106 Agreement.
  • 20-year Management Lease agreed with Southern Housing Group who will also provide domiciliary care services.
  • Provision of social benefit through the housing and care of older and vulnerable residents in a Council with above national average of older people population.
  • is reepresenst hhThe proposed scheme is aligned with Isle of Wight Council’s Extra Care Housing Strategy and will be subject to a nomination agreement along with revenue contribution towards support costs.is reepresenst hh
  • Property due diligence and valuation commissions completed by JLL.
  • Legal due diligence completed by Trowers & Hamlin.
  • Contracts exchanged and completed in March 2019.
  • Start on site achieved in March 2019, target completion date November 2020.

Summary

This investment facilitates the delivery of Extra Care apartments for older people providing significant social benefit by offering greater independence and dignity than institutional care.  The Project combines excellent social delivery with an expected robust financial outcome.