Amount in respect of alternative finance arrangementsN.I.
11.—[F1(1) This paragraph provides for the calculation of the amount to be included in the owner-occupier's housing costs element under this Schedule in respect of relevant payments which are alternative finance payments.
(2) The amount in respect of the alternative finance arrangements to which the payments relate is to be calculated as follows—
Step 1
Determine the purchase price of the accommodation to which the alternative finance payments relate.
Step 2
Identify which is the lower of these 2 amounts—
(a)the amount resulting from Step 1, and
(b)£200,000,
and, if both amounts are the same, that is the identified amount.
Step 3
Apply the formula—
where—
“A” is the amount resulting from step 2,
“SR” is the standard rate that applies at the date of the calculation (see paragraph 12).
The result is the amount to be included under this Schedule in respect of alternative finance payments.
(3) “Purchase price” means the price paid by a party to the alternative financial arrangements other than the owner-occupier in order to acquire the interest in the accommodation to which those arrangements relate less—
(a)the amount of any initial payment made by the owner-occupier in connection with the acquisition of that interest, and
(b)the amount of any subsequent payments made by the owner-occupier before the relevant date to another party to the alternative finance arrangements which reduced the amount owned by the owner-occupier under the alternative finance arrangements.
(4) Any variation in the amount for the time being owing in connection with alternative finance arrangements is not to be taken into account after the relevant date until such time as the Department recalculates the amount under this Schedule by reference to the amount that is owing in connection with the alternative finance arrangements—
(a)on the first anniversary of the relevant date, or
(b)in respect of any variation after the first anniversary, or the next anniversary which follows the date of the variation.]
Textual Amendments
F1Sch. 5 paras. 10-12 omitted (6.4.2018) by virtue of The Loans for Mortgage Interest Regulations (Northern Ireland) 2017 (S.R. 2017/176), reg. 1(2)(a), Sch. 5 para. 5(f)(vi) (with regs. 18(2), 19, 19A, 20)
Modifications etc. (not altering text)
C1Sum in Sch. 5 para. 11(2) specified (24.3.2018) by The Social Security (2017 Benefits Up-rating) Order (Northern Ireland) 2018 (S.R. 2018/56), arts. 1, 27(4), Sch. 17
C2Sum in Sch. 5 para. 11(2) (as continued) confirmed (29.9.2018) by The Social Security Benefits Up-rating (No. 2) Order (Northern Ireland) 2018 (S.R. 2018/167), arts. 1, 28(3)(b)