 Estimated costs and cashflow
We are currently updating our projected costs and will post them here shortly.
We anticipate that the site purchase and build costs will largely be financed by a corporate loan from the Co-operative Bank, which has a specialist package available to Cohousing developers. It is anticipated that this will be a rolling loan facility. This loan would cover a maximum of 70% of the project costs, meaning that on average, members would have to be in a position to put down a 30% deposit in order for the purchase to be completed and construction to commence.
The money required from members at different stages in the project is likely to be as follows:
| On joining |
£5K |
| At or before site purchase |
30% (or more) of projected house cost (minus £5K already provided) |
| Development phase |
monthly interest payments |
| Build completion |
individual mortgages for the remaining 70% (or less) |
Members who have more than 30% than the projected cost of their house will be encouraged to pre pay more. The advantages of this will be
- financial (getting the same interest rate as the bank)
- allowing other members who do not have 30% deposit but can secure a mortgage for the cost of their homes to join
- higher priority in plot choice
For more information see the financial procedures section of the residents handbook.
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