Valley House, in Coventry, provide safe accommodation for vulnerable people - including families escaping domestic abuse and young parents who are unable to live independently.
With suitable housing for these groups in short supply, Valley House wanted to take more control by buying instead of leasing. To fund the purchases, they approached Social and Sustainable Capital (SASC) for a loan and asked Anthony Collins Solicitors (ACS) to guide them through the legal aspects.
A perfect match
Traditionally, Valley House has been funded largely by grants. Borrowing money was something new, with a degree of risk involved. However, they were in good hands. Social and Sustainable Capital is an organisation that lends solely to projects with social impact and Valley House is exactly the sort of project they look to fund. Even so, SASC investors expect a return as they are often philanthropic organisations who want to grow their investment to fund more projects in the future.
CEO, LJ Winterburn, describes what Valley House were looking for from ACS;
More financially sustainable
ACS made sure that both parties were happy with the arrangement and that Valley House understood the ramifications of the loan. As a result, Valley House have been able to buy 13 properties with plans to buy nine more – which will provide homes for 28 people. The funding also makes the charity more financially sustainable in the long-term as it will own the properties and no longer be so reliant on the private rented sector. Jon Coane, partner at ACS, says the work was about more than understanding the finer points of law;
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