What makes this venture special is that it is run by local people to benefit local people. At least two-thirds of the residents will come from Chapeltown. We are also working hard to make sure that the group reflects the diversity of the local area in terms of age, ethnicity and wealth.
Chapeltown Cohousing’s business model is straightforward. We will purchase the site and build new housing that is sold or rented to existing and new members. Rental income will cover the ongoing cost, renovations and the repayment of loans. In order to build the houses we need over £3 million. Most of this will come from the sale of members’ current property and from a long-term mortgage.
But we need your help. We want to offer affordable rented accommodation to people who don’t have capital and don’t own a house. Being a housing cooperative means that we can offer secure long-term rented accommodation.
Each £65,000 we raise as loanstock will enable us to build another single affordable rented apartment – and each additional £6,500 will ensure it is so energy efficient that even those on low income will never have to worry about fuel poverty.
What is Chapeltown Cohousing?
Chapeltown Cohousing Ltd (formerly called Imba Yedu Housing Cooperative) is a registered housing cooperative set up in 2002 with the aim of providing, constructing, converting, improving or managing accommodation on cooperative principles.
What is loanstock?
Loanstock is a way for people who share our vision to provide financial support for the project and enable us to offer more affordable rented properties than would otherwise be possible.
At this stage Chapeltown Cohousing is looking for people to invest for three years and is offering interest rates from 0% to 2%. You get to choose the interest rate – however, we offer this loanstock as an opportunity for those who share our vision to help us make it a reality, rather than as an opportunity to make a financial return on an investment, and choosing a lower interest rate offers us more support.
Loanstock is a loan in the form of an unsecured fixed-term, fixed-interest bond. It’s non-transferable (ie: it cannot be transferred from one person to another unless it is held jointly), and confers neither voting rights nor any control over the cooperative. There is no schedule for regular capital repayments. Rather, interest on loanstock is paid annually, and the capital is repaid in full at the end of three years.
Are there financial risks?
Yes. But we are confident, based on our financial planning, that Chapeltown Cohousing’s plans are viable. We are staking our own homes on it. However, please be aware that loanstock is treated as an unsecured loan and therefore carries an element of risk. We are using the loanstock to purchase land and develop housing, which means that the cooperative will have substantial assets that can be sold – especially at the later stages of the development. However, we cannot give a guarantee that we would be able to repay all loanstock in the event of bankruptcy.
Are there benefits of investing in Chapeltown Cohousing?
- An opportunity to be a catalyst for change in one of the most deprived areas of the country
- An ethical investment – with interest if you choose to receive it
- A chance to support an organisation that shares your values
- High accountability – you know exactly where your money has gone
- No bankers’ bonuses.
How to show your support
We need your pledge straight away, but we don’t need your money – yet! At this stage we simply need to know what we can raise.
We will contact you later with the full Loanstock Prospectus, and once you have read all the terms and conditions we will ask you to make a firm commitment by signing an agreement.
Chapeltown Cohousing Ltd
Registered under the Industrial
and Provident Societies Acts,
Register No. 29376 R
115 Spencer Place, Leeds, LS7 4DU