Responding to the needs of both their existing and prospective borrowers, as of 2017 the AHF is now able to offer bespoke mortgage-style loan facilities.

Longer-term social investment is difficult to find, but the Heritage Mortgage programme allows borrowers to plan ahead across a number of years and at an earlier stage than is usual, potentially reducing the annual costs by stretching the payments over a longer period.

The Heritage Mortgage  is available either pre or post completion of a capital project.

The programme’s terms

  • Investment sum: £150,000 to £500,000  
  • Interest Rates: Typically 4-6% fixed or can be linked to Base Rate
  • Arrangement Fee: On application
  • Term of loan: Typically 10-20 years (up to 30 years by exception)
  • Security: First legal charge/first ranking standard security
  • Loan repayment terms: Capital and interest only, though initial capital and/or payment moratoria can be considered

Eligibility Criteria

  • The legal form of the organisation which is applying must be one which is currently eligible for existing AHF loan programmes
  • Applicants must be based in the UK
  • The building should have statutory protection through national listing, or be in a Conservation area
  • Applicants must demonstrate how financial assistance from the AHF will enable it to provide demonstrable social impacts
  • The AHF can normally lend up to 70% of the estimated open market resale value of any acceptable property or land over which it takes a first charge. If this is the project building for which the loan is required, it can lend up to 70% of the property’s estimated ‘end value’.
  • Upon application the following must be provided to the AHF’s satisfaction:
    • governing documents
    • a contemporary business or development plan;
    • a minimum of five years’ cashflow forecasts;
    • details of the security being offered;
    • evidence of statutory listing or conversation area within which the building  is situated;
    • mini-blogs of all Directors/Trustees;
    • any other supporting documentation which may be helpful

For more information on this loan, please visit the AHF website that has been provided on the right hand side. Alternatively, to contact the AHF directly using the contact details also provided  on the right hand side.