The Joint Scheme ("The 1922 Scheme") -
the product of a Joint Committee
set up by Birmingham City Council
consisting of representatives of the Bank, Estates and Finance Committees
Document produced in October 1923 in order to explain the above Scheme
House Purchase
The scheme which was inaugurated a short time ago, whereby houses erected under the Corporation's own Housing Scheme could be purchased by the prospective tenants with the aid of financial assistance from the Birmingham Municipal Bank, is now in full swing.
It will be remembered that the scheme was the outcome of a Joint Committee set up by the Council consisting of representatives of the Bank, Estates and Finance Committees under the chairmanship of Councillor Appleby.
As the houses erected by the Public Works Committee are finished, they are handed over to the Estates Committee. At this stage the Estates Committee assume responsibility, and they decide which of the numerous applicants shall become the possessors of the houses. Having done so, the Estates Department notify the Municipal Bank of all applicants who desire financial assistance.
Immediately the Bank receive such notification the ordinary procedure of the House Purchase Department is set into operation, including a professional valuation of each house. When that valuation is received, the Bank acquaint the intending purchaser of the amount they are prepared to advance. This amount, in cases where the full extent of financial assistance is required, is equal to four-fifths of the valuation, but in many cases the intending purchaser does not require the maximum assistance, and a loan for a lesser amount is arranged. The intending purchaser sends a written acceptance of the Bank's offer and the Town Clerk is at once instructed to prepare the mortgage deed. The legal formalities are quickly arranged and the final fixing of the repayment periods and amounts settled, and
Thus it will be seen that a simple and inexpensive method is provided. Beyond the small valuation fee there are no other charges in connection with the transaction.
The first Estate to come under this Scheme was the Farcroft Estate at Handsworth, consisting of houses of the parlour type in Hollycroft Road, Farcroft Road, Astley Road, Grafton Road, Aylesford Road and Farcroft Grove. In the schedule which was issued to the public in connection with this Estate, it was indicated that the average purchase price would be 415, and the approximate advance by the Bank 300.
So far as the Bank are concerned, the valuations in respect of the individual houses show a slight variation due to the difference in lay-out and the extent of land comprised in the purchase. The result is that in a few cases the advance works out at 280, but in respect of the bulk of the cases an advance of 300 can be obtained.
Up to the end of September the Bank had received 82 applications in respect of Farcroft Estate houses. Of these, 31 had been completed and the loans arranged; 17 were in legal process; and 34 were awaiting valuation, etc. In the last named cases it should be pointed out that the houses were not completely finished and therefore could not be valued, the applications having been sent in a little in advance.
A start has also been made in respect of houses in Vimy Road and Jutland Road, King's Heath. These are of the non-parlour type, and the Bank have also been able to advance 240 in respect of these houses. Up to the end of September, 4 applicants for this area had been received and dealt with.
October 1st 1923
Assisted Housing Scheme