- The share offer may not raise minimum amount;
- Leeds Community Homes may be unable to secure mortgage;
- Leeds Community Homes can’t cover its core costs beyond 2016;
- Mortgage interest rate may rise;
- Leeds City Council planning refuse our application to be S106 provider;
- Developer Citu is unable to meet agreed build timescales;
- Difficulty selling the affordable intermediate properties;
- Difficulty finding tenants;
- Difficulty maintaining tenancies;
- Void, damage and bad debt;
- Policy environment for affordable housing becomes more hostile
Leeds Community Homes has undertaken a series of mitigation measures to reduce the risks stated above, including stress testing their plan at interest rates of up to 8% and confirmed that this project is still affordable even at the minimum investment. They have also identified a lender - Ecology – who are particularly interested in the environmental credentials of the development and have indicated that they are keen to be involved in offering to lend to the purchasers of the flats the Society will sell on.
This list is not necessarily comprehensive and you should read the business plan to see what mitigation strategies LCH have in place for each risk. You should also read the of Leeds Community Homes to consider other risks which may impact upon your investment.