Empty homes

Grants to help local homebuyers renovate empty house/second homes to an acceptable living standard. The property must have been empty or previously registered as a second home by Cyngor Gwynedd’s Tax Department for at least 6 months or more, and the applicants will need to have a connection with the local area.

Please ensure that you meet all the following criteria before applying for the grant. 

Applicant(s) 

• At least one applicant must meet one of the following:
  • Have lived for a minimum of previous 5 years in the Community Council district (or adjacent district) of the newly purchased property.
  • Previously lived for a period of 10 continuous years in the Community Council district or adjacent district of the newly purchased property.
• Lived in the district or adjacent district of the newly purchased property for 365 days a year for the fixed term (5 or 10 years) and Council Tax has been paid on the Property occupied for that period (on the basis that the Property is / was been permanently resided).
• Household income must not exceed £60,000.
• Mortgage deposit must not exceed 35% of the property purchase price.
• Must follow the Acceptable Cost Guidance which can be seen below – i.e. the maximum allowable property purchase price.
• Property must be registered as an empty property or second home for 6 MONTHS prior to purchasing the property.

Property

• Must follow the Acceptable Cost Guidance which can be seen on the next page – i.e. the maximum allowable property purchase price
• Property must be registered as an empty property or second home for 6 MONTHS prior to purchasing the property

Acceptable Cost Guidance

Band 2

• Bala, Bethesda, Betws Garmon, Bontnewydd, Brithdir & Llanfachreth, Corris, Dolbenmaen, Dolgellau, Dyffryn Ardudwy, Ffestiniog, Ganllwyd, Llanaelhaearn, Llanberis, Llanddeiniolen, Llandderfel, Llanegryn, Llanelltyd, Llanfair (Meirionydd), Llanfihangel-y-Pennant, Llangelynnin, Llangywer, Llanllechid, Llanllyfni, Llanuwchllyn, Mawddwy, Pennal, Talsarnau, Trawsfynydd, Tywyn, Waunfawr

Band 3

• Abergwyngregyn, Aberdaron, Abermaw, Arthog, Bangor, Beddgelert, Botwnnog, Bryn-Crug, Buan, Caernarfon, Clynnog, Cricieth, Harlech, Llanbedr, Llanbedrog, Llandwrog, Llandygai, Llanengan, Llanfrothen, Llannor (Dwyfor), Llanrug, Llanwnda, Llanycil, Llanystumdwy, Maentwrog, Nefyn, Penrhyndeudraeth, Pentir (Ysbyty Gwynedd), Pistyll, Porthmadog, Pwllheli, Tudweiliog, Y Felinheli.

Band 4

• Aberdyfi 

View map of electoral wards

Grants of up to £25,000 are available for homeowners or prospective homeowners to renovate empty houses to make them safe to live in and improve their energy efficiency.
To qualify for the grant, the property must have been registered as empty for a minimum of 12 months at the date of application, and the owner must meet the local connection criteria in Gwynedd.

Further information: National Empty Homes Grants

A scheme offering short term interest free loans mainly to de­velopers to bring empty and redundant dwellings back into residential use and/or the conver­sion of properties into dwellings. Schemes will be assessed in relation to local demand and impact.

Status and target group

• This type of assistance is DISCRETIONARY

Eligibility

• The assistance in the form of a loan is available to owners to bring empty properties back into use for sale or rent, but not for owner-occupation.
• Applicants for loans should not have an adverse credit CCJ/bankruptcy
• Loans can be offered to:
  • Individuals
  • Companies/businesses
  • Charities

• All works deemed necessary to bring the property back into residential use including the costs of conversion where properties are made into a number of separate/individual units of accommodation.

Conditions

• In the case of loans to return a property into use to sell, there is a maximum two year repayment period.
• In the case of loans to return an empty property into rental use, the loan repayment period is 5 years.
• Upon completion of works, properties must be available for rent or be sold.

Application

• Properties must have been vacant for more than six months
• If the loan does not cover the full costs of the works, evidence of adequate finance to ensure that the scheme is financially viable from the start.
• Applications must be supported by an independent RICS valuation and the Council to provide a local land search.
• Maximum loan of £35,000 per unit of accommodation up to a maximum of £150,000 per applicant.
• Loans will be secured as 1^st or 2^nd charge against the Land Registry title.
• Maximum of 80% loan to value - based on the current value and condition of the property offered as security.
• All loans will be offered interest free.

What to do next?

• Contact the Empty Homes Team to discuss the Expression of interest form. An officer will arrange to visit the property to assess its suitability.

Who to Contact?

For more information please contact the Empty Homes Team.

• 01286 682621 / 01286 679290
• taigwag@gwynedd.llyw.cymru

• Housing Department, Cyngor Gwynedd, Stryd y Jêl, Caernarfon, Gwynedd, LL55 1SH

A short-term interest free loan between £1,000 and £25,000 for Owner-Occupiers, Landlords, Developers and Charities to make their home warm and secure. 

What's available?

• A discretionary loan of up to £25,000 to assist home owners in improving the standard of their property.
• Loans range from a minimum of £1,000 up to a maximum of £25,000 per unit of accommodation, with a maximum of £150,000 per applicant at any one time
• There is a maximum 80% loan to value ratio – based on the current market value and condition of the property offered as Security, in addition to any further finance secured against the property. The loan is available if the mortgage and any secured loan(s)/finance combined do not exceed 80% of the home's current value. For example, on a property worth £100,000, the maximum LTV would be £80,000, therefore: A ) if the property is worth £100,000 and you have 75% mortgage (i.e. £75,000), you may only apply for £5,000 (ie remaining 5% equity) loan for renovation. B) if the property is worth £100,000 and you have 60% mortgage (i.e. £60,000) and secured finance amounting to a further 15% (i.e. £15,000) you may only apply for £5,000 (ie remaining 5% equity) loan for renovation
• All loans will be offered interest free, but will incur an administration charge of £500; this can be added to the loan or paid upfront.

Eligibility

• This assistance is DISCRETIONARY
• Home Improvement Loan assistance is available to:
  • Owner Occupiers ‐ primary residence only
  • Landlords (individuals & companies)
  • Developers (partnerships and companies)
  • Charities/Third Sector Organisation

Application

• Welsh Government's Home Improvement Loan Scheme Application Form
• Applications must be supported by an approved valuation, and proof of title.
• The property must be registered with the Land Registry prior to application.
• If the loan does not cover the full cost of works, evidence of adequate finance to ensure that the scheme is financially viable from the outset is required.
• The applicant’s ability to afford the loan will be determined and administered jointly by Gwynedd Council and Street-UK.

Conditions

• Owner-Occupiers must repay the loan within a maximum loan term of 7 years.
• Landlords, Developers and Charities must repay the loan within a maximum loan term of 5 years.
• All loans will be secured as charge against the Land Registry Title of the property.

Who to contact?

• 01341 434351/ 01286 679290/ 01286 682 621
• taigwag@gwynedd.llyw.cymru
• Tai Sector Preifat, Adran Tai ac Eiddo, Cyngor Gwynedd, Cae Penarlag, Dolgellau, Gwynedd LL40 2YB 

The Council can help to reduce or eliminate the VAT payable on all materials used to bring a vacant property back into use. Properties that have been empty between 2 and 10 years can have the VAT on materials used reduced to 5%. Those empty for 10 years or more can have the VAT reduced to nil.

Bringing empty properties back into use can be costly, particularly when extensive renovations are required. To help reduce these costs, the Government has introduced a number of changes to the amount of VAT payable on renovation costs to long-term empty buildings.

If you are intending to renovate an empty property it is important that you understand these changes, as it is quite common for builders not to know about different VAT rates. This could lead to you being charged the standard rate of 20%, even if you are eligible for a reduction. Once paid it can be difficult to reclaim overpaid VAT.

This guide provides an overview of circumstances in which you may be eligible for a VAT reduction when renovating empty properties. Please note, this guide is not comprehensive and should not be taken as a guarantee. Any claims to VAT reduction/exemption should be verified with HMRC, and/or confirmed through reference to HMRC Notice 708 and/or HMRC Notice 431C

VAT Reduction: renovating houses empty for a minimum of two years

• Costs of renovation and alteration work to residential premises that have been empty for at least two years can be eligible for a VAT rate reduced to 5%. This equates to a reduction of 15%, from the 20% standard rate normally applicable. 
• Contractors should ensure they are fully aware of tax rules when they are purchasing goods/services. Only certain goods/services are considered eligible for this VAT reduction (HMRC Notice 708, Section 8.4).
• For further details refer to HMRC Notice 708

VAT Exemption: renovating houses empty for minimum of ten years

• Renovation and alteration work to residential properties that have been empty for at least ten years can be eligible for a VAT reduced rate of 0%.
• Your eligibility is partially conditional on using the renovated property for residential purposes for either yourself or your family. It is not possible to live in the property directly before beginning renovation work.
• Further information can be found through reference to HMRC Notice VAT431C and HMRC Notice 708.

VAT Exemption: conversion of properties to residential purposes

• When converting a non-residential property to residential purposes you may be eligible for a VAT rate of 0%.
• A conversion in this case is defined as converting a non-residential building that has never been used for residential purposes into a residential home.
• Your eligibility is partially conditional on using the converted property for residential purposes for either yourself or your family. 
• Further information can be found through reference to HMRC Notice VAT431C and HMRC Notice 708

I think I may be eligible, what do I do now?

If you believe you may be eligible for a VAT reduction/exemption (on any works you will be undertaking to bring an empty property back to residential use) then contact HMRC:

• 0300 200 3700 (Monday-Friday, 08:00-18:00)
• https://www.gov.uk/topic/business-tax/vat

Once HMRC confirm your eligibility, contact Gwynedd Council Empty Homes Team to request proof that the property has been empty for the required period:

• 0134 142 4371 (Monday - Friday, 09:00-17:00)
• taigwag@gwynedd.llyw.cymru