VLL5
Housing Assistance for Clergy Marriage Breakdowns
Summary of the Housing Loans Scheme of
the Church Commissioners
1.
Background
With the backing of the House of Bishops the Commissioners introduced a scheme in 1986
to assist with the housing of clergy spouses whose marriages had broken down. The scheme
is not designed to meet short-term housing needs, which are best met via the rental market or
other temporary arrangements.
2.
The Scheme
If other avenues of support have been explored without success, the sponsoring diocese can
apply to the Commissioners for a loan up to a present maximum of £150,000 to provide part
or all of the cost of a modest property (normally not exceeding the size and value of a semidetached property and less in many cases depending on the spouse’s circumstances). The
DBF or spouse must normally contribute the balance of capital required. The Commissioners
take a share in the equity (i.e. the value) of the property purchased by linking it
proportionately to the amount of their loan, which is made to the Diocesan Board of Finance,
which becomes the owner of the property. This proportion can be up to 100%. The initial
rate of interest charged is currently 4% (revised at the beginning of each year in accordance
with the Retail Price Index).
3.
Principal Criteria
We administer the scheme with due flexibility having regard to the overriding need to ensure
that deserted spouses (and their families) are properly housed at a time of great stress and
anxiety. Among the criteria for a loan which normally apply are:
4.
(i)
A response to pastoral and financial need;
(ii)
Immediacy i.e. our help is intended for current cases of marital breakdown;
(iii)
Housing is intended for deserted spouses of stipendiary clergy, deaconesses and
licensed lay workers presently engaged in fill time church work who, immediately
before the marriage breakdown, lived in tied accommodation provided by the church;
(iv)
Applications come from the sponsoring diocese which takes on responsibility for the
interest payments on the loan.
Property
Spouses must involve their sponsoring diocese in the search for a suitable property (normally
via the Diocesan Surveyor). Having identified a suitable property negotiations for the
purchase should be undertaken by the diocese. Most dioceses meet the legal and surveyors’
fees connected with the purchase. The Commissioners’ loan cannot meet these costs.
5.
Terms of Occupation
These are a matter for the diocese and the spouse. The spouse would normally be a licensee
or tenant of the diocese under terms of occupation which are designed to offer security of
tenure so long as the spouse’s personal housing needs remain unchanged. Dioceses take the
spouse’s financial circumstances into account in settling the terms of occupation. The licence
fee or rent to be paid to the diocese may range from (a) the “market rent” which might be
expected to cover the diocese’s property outgoings (including structural repairs etc) and
interest payments to the Commissioners and which the spouse is able to meet from salary or
other income to (b) a discounted licence fee or rent in the light of the spouse’s financial
circumstances. Housing and other benefits may be available to the spouse and the diocese
will normally help with appropriate applications. The spouse would be responsible normally
for Council Tax payments and other utility payments and, because of the circumstances in
which the occupation rights arise, the spouse would be unable normally to share the house,
save with own children, nor sub-let it. Some spouses may wish to take in lodgers (who
would not acquire any tenancy rights). Authority to do so on each occasion must be sought
from the appropriate diocesan officer.
6.
Capital repayments
There are none unless and until the property is sold. In certain circumstances, a spouse can
purchase a share (or indeed all) of the equity of the property based on a current open market
valuation.
7.
Removal Costs
These are normally the responsibility of the spouse, although certain Church charities can
help with them. The Bishop’s Visitor will have information about these charities and can
help with applications.
8.
Duration of Loan
The Commissioners review their loans every five years with the dioceses. Should the need
for accommodation cease (through re-marriage or changed financial circumstances for
example) then a loan would normally be repaid. As indicated above, it is open to the spouse
to buy a property from the diocese at that time.
Full details of this scheme are available from the Diocesan Office or the Commissioners’
Pastoral Division.
Church Commissioners
Pastoral Division
Telephone: 020 7898 1000
Fax: 020 7898 1873
Email: pastoral@churchofengland.org
September 2010