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HOUSE PURCHASE DEPARTMENT:

THE ASSISTED HOUSE PURCHASE SCHEME

(continued)

Summary of Recommendations:

 

(1) That the Bank, Finance and Estates Committees be recommended to approve and adopt the Scheme set out in Part 1 (A) of the foregoing Report with respect to the procedure upon the purchase of Municipal Houses with the assistance of the Municipal Bank.

 

(2) That the Bank, Finance and Estates Committees be recommended to approve and adopt the scheme set out in Part 1 (B) of the foregoing Report in regard to the procedure for dealing with applications for the purchase of Municipal Houses.

 

(3) the Bank, Finance and Estates Committees be recommended to agree that except in cases where defects in construction of Municipal Houses have been proved to exist, and subject to the recommendations contained in the Report regarding exceptional cases, the repurchase of Municipal Houses by the Corporation shall be discountenanced.

 

(4) That, as it is considered that the special low deposit facilities allowed to the original purchaser of Municipal Houses should also be made applicable to second purchasers on resale, the Bank, Finance and Estates Committees be recommended to approve the principle of granting (to the extent and on the conditions indicated in the foregoing Report) augmented advances to such second purchasers in approved cases.

 

(5) That the Estates Committee be recommended, in cases where Municipal Houses have been repurchased and it is considered desirable that the occupiers should continue to be accommodated in Corporation Houses, to instruct that arrangements be made for the tenants to be transferred to houses allocated for letting.

 

(6) That the foregoing Report of the Joint Conference be approved and that the Bank, Estates and Finance Committees be recommended to adopt the procedure indicated in regard to the matters therein mentioned.

The two forms designed by the Town Clerk were very large in both length and width. The following is a representation of the questions required to be answered by a potential purchaser:

 

FORM A - INFORMATION REQUIRED FROM THE APPLICANT

 

PURCHASE OF MUNICIPAL HOUSES.

(This form must be sent to the General Manager of the Estates Department, Moat Lane, Birmingham.)

 

Name of Applicant (in full) ....

Note: If the application is made in the name of a married woman the full names of the husband are also required.

___________________________________

Name of Applicant ....

Name of Applicant's wife ....

___________________________________

Have you ever owned or occupied a house under the Birmingham Corporation?

If so, give particulars.

How long have you lived in Birmingham?

How long have you worked in Birmingham?

___________________________________

Are you the owner, tenant or lodger at the above address?

If you are the owner of a house, why do you wish to purchase a Municipal house?

If you are the tenant of a Municipal house, why do you wish to leave?

___________________________________

Are you married, single, divorced, or widower?

If you are single, do you contemplate marriage before entering into occupation?

___________________________________

Occupation.

___________________________________

Name and Address of Employer.

Work No (if any)

___________________________________

What is your present income?

Is this the amount of your salary? If not, give details.

___________________________________

Have you any, or do you anticipate contracting any outlay necessitating a weekly payment in addition to house purchase?

___________________________________

Do you wish to purchase a parlour or non-parlour type house?

What district do you wish to reside in?

___________________________________

What amount of cash can you find towards the purchase price?

Would this be borrowed money?

___________________________________

Is a loan for the balance required from the Birmingham Municipal Bank?

Over what period do you wish to spread the loan? Maximum allowed, 20 years.

___________________________________

If so, the following questions must be answered.

Are you a depositor in the Bank? ___________________________________

State Bank Book No___________________________________

Date account opened___________________________________

Branch where account is kept___________________________________

If you are not a depositor steps must be taken to become one, and the questions then answered.

___________________________________

Do you have any children, state ages and sex

Boys

Girls

___________________________________

Have you previously applied to the Estates Department for the tenancy of a house?

If so, what is your registered number

______________________________________________________________________

I hereby undertake and agree that when in response to this application a house in course of construction or otherwise is set aside for me and in consideration of the same I will pay forthwith a first deposit of Three Guineas to the Estates Department of the Corporation, it being fully understood and agreed by me that in the event of my failing to sign Form B attached hereto when required so to do by the Corporation and to observe in all things the terms and conditions of Form B, the said sum of Three Guineas will be forfeited and will become the property of the Corporation. I further understand that if I wish not to proceed with this transaction and refuse accordingly to sign Form B when required so to do I shall be required to make no payment over and above the said sum of Three Guineas.

Signature ...........................................................

Date .............................................

 

 

FORM B - CITY OF BIRMINGHAM. PURCHASE OF MUNICIPAL HOUSES.

AGREEMENT OF PURCHASE

 

PURCHASE OF MUNICIPAL HOUSES.

(This form is not to be filled up in any way until the applicant is requested to do so by the Estates Department.)

 

TO THE CORPORATION OF BIRMINGHAM.

IN CONSIDERATION of your having handed to me the keys and let me into possession of the premises No                                                , I having paid to you the sum of £                     by way of deposit together with stamp duty amounting to £                  I hereby undertake and agree with you as follows:

(1) To purchase from you the said premises for the sum of £                     by way of lease for 99 years at a ground rent of £                               .

(2) Within 12 months from the date hereof to execute a counterpart of the lease from you to me of the said premises and also a mortgage from me to you to secure the amount to be advanced by the Birmingham Municipal Bank such documents to be prepared by the Town Clerk and to be in the form which have been produced to me.

(3) Upon the Monday in every week following the date hereof until actual completion to pay a further deposit of £                  per week out of which I understand is to be paid by me in addition to the ground rent payable under the lease interest at the rate of Five pounds per centum per annum on the balance of the purchase money outstanding such payment to be computed from the date hereof up to the date of actual completion.

(4) In the event of my failing to pay regularly to your satisfaction the said further deposits

of £                     per week:

(a) to quit and give up possession to you of the said premises when required by you so to do;

(b) to forfeit to you out of the said deposit plus the said further deposits the legal costs incurred by you together with further costs of Two Guineas to your Estates Department and the like sum to your Municipal Bank Department together with a sum equivalent to the rates (including water rate) ground rent insurance on purchase money and cost repairing damage (if any) to the said premises which have accrued during my occupation of the said premises the balance of the said deposit plus the further deposits together with stamp duty being returned to me.

 

I understand that upon actual completion by my executing the said documents I shall not be charged any costs by you and that I shall have returned to me out of the further deposits of £        

weekly referred to above the sum (if any) remaining after deduction of a sum equivalent to ground rent interest on purchase money and insurance.

 

Signed ....................................6d stamp .........................

Date............................................

 

Problems relating to the construction of houses and to issues between the Bank and the Estates Department continued to arise during the summer of 1927, examples being raised at the following Bank Committee meetings. The conclusion of a meeting held in June was that there was still room for improvement in administrative matters between the Bank and the Estates Department.
 

 

House Purchase Sub-Committee: March 14th 1927

 

On Minute No 42 (5 Greenock Crescent, Kings Heath - Mortgagor P J C Duckett) the Sub-Committee were informed that this was a case in which the applicant for an advance on a Corporation house had been given possession of the property by the Estates Department before the Bank had decided to make an advance. It appeared that the income of the applicant was below the amount indicated in the scale adopted, and the matter had accordingly been brought before the Sub-Committee for decision. The Sub-Committee discussed the matter at some length and (after an amendment had been put and negatived that the application should only be granted on the understanding that in the event of the applicant being unable to keep up his payments the Estates Committee would indemnify the Bank against any possible loss) it was:

79       RESOLVED:- (With two dissentients, Alderman Sir P Bower and Councillor Gelling) that the application be acceded to.

 

The General Manager called attention to a complaint which had been received from the mortgagor of property No 63, Bramley Road, Acocks Green, with regard to the condition of the property.

 

97        RESOLVED:- That the General Manager be instructed to take the matter up with the City Surveyor with a view to a report being furnished in regard thereto.

 

House Purchase Sub-Committee: April 11th 1927

 

On Minute No 97 (63, Bramley Road, Acock's Green) the General Manager stated that with regard to the question of the defect complained of by the Borrower (Mr Stevenson) the City Surveyor had intimated that the trouble was due to the linoleum having been laid down before the floor was properly dry, and that the only indication of damp was a slight discolouration in the back sitting room. Mr Stevenson had accordingly been requested to communicate direct with the City Surveyor should he have any further complaint to make.

 

105     RESOLVED:- That Minute No 97 be discharged.

 

The General Manager presented the following report with regard to certain applications for advances in respect of Municipal houses which had received special consideration by the Chairman and Mr Councillor Kenning, the Chairman of the Estates Committee:

 

An interview has recently taken place between Councillor Lovsey and Councillor Kenning regarding certain cases which present difficulties to both Committees, and after full consideration of these cases by Councillor Cooper and the General Manager it has been decided to act as indicated below:

 

A G Gouch

A Mortgage is in force in respect of No 8 Denham Road, Acocks Green. The Mortgagor has paid £19 in reduction of his loan and a deposit of £21. Estates Department have agreed to re-purchase on the understanding that Mr Gough will buy a brick built house. It has now been agreed for him to purchase Fox Green Crescent, Acocks Green, and the amount repaid to be used as a deposit towards such purchase.

 

E. Troy

This man is a Grocer's traveller earning £3. 10. -d. per week, and wishes to get married at Easter. He has purchased most of his furniture and possesses War Savings Certificates to the value of £12. 10. -d. His intended wife has a Costumier's business at Small Heath and proposes to continue such business after marriage. She states she can earn as much as £3 per week in certain seasons.

 

Agreed to grant an advance in the usual way, but if it is later found that the man cannot keep up his repayments the Estates Department to re-purchase and transfer him elsewhere.

 

T H Willmore, Junior

This man is a carpenter and joiner, earning £3. 10. -d. per week and wants to get married as soon as he can get a house. Has £3 in Duddeston Branch. Altogether he and his intended wife possess £73, out of which the deposit on the house will have to be paid and a portion of the furniture purchased. It had been suggested to Willmore that he should find a surety. The agreement form with Estates Department which entitles him to a house has been signed. Agreed that an advance should be made, but if he gets into trouble with his repayments the Estates Department to re-purchase and transfer him elsewhere.

 

C J O'Leary

This man is a show-room attendant earning £1. 10. -, per week; has a pension of £1. -. -. per week, and receives £1. 10. -d. per week as rent from two sisters. Keys of the house, No 15 Fox Grove were handed to him on 6th December, 1926. Agreed to grant the advance but if he gets into difficulties with his repayments the Estates Department to re-purchase and transfer him elsewhere.

Mrs M Luckett

This woman is a widow and receives £1 per week as a grant from Luckett & Son, Market Lane, Pershore Street. Two sons reside with her and pay her £1. 1. -. each per week. Keys of the house were handed over on 18th November 1926. Agreed to grant the advance but if she gets into difficulties with her repayments the Estates Department to re-purchase and transfer her elsewhere.

 

E George

This man is a tester at the Lanchester Motor Company and earns £2. 16. 6. weekly, plus 9/- per week overtime. Has a premises (general shop) in Alfred Street, Sparkbrook, which he at one time intended to sell, but has now decided to retain. Has two children aged 9 years and 12 years. Estimates the profits from the shop to be £1 per week. Keys of the house handed over on 22nd December, 1926. Agreed to make the advance but if he gets into difficulties with his repayments the Estates Department to re-purchase and transfer him elsewhere.

 

After discussion, it was:

109     RESOLVED:- That the General Committee be recommended to sanction the appropriate advances in the cases above-mentioned, subject to the Estates Committee agreeing that should the Borrower fall into arrear they will re-purchase the properties and transfer the Mortgagors elsewhere.
 

Bank Committee: April 25th 1927

 

With reference to applications for advances on Corporation houses in respect of which possession had either been granted or agreed, the Committee were informed that the Estates Department had been communicated with in the matter and it was understood that they would agree, except in the cases of E Troy and T H Willmore, Junior, to the proposed condition of the granting of advances. It was accordingly:

 

2669  RESOLVED:- That on the understanding that the Estates Committee are willing, in the event of the under-mentioned Borrowers falling into arrear with their repayments, to repurchase the properties and transfer such Borrowers elsewhere, the appropriate advances for the purchase of Municipal Houses be sanctioned in respect of the properties in question.

 

Name.

Property.

O'Leary, D J

15 Fox Grove, Acocks Green

Windridge, W S

36 Brent Road, Kings Heath

Shuttleworth, W H

12 Pemberley Road, Acocks Green

Luckett, Mrs M

10 Pemberley Road, Acocks Green

George, B

7 Fox Green Crescent, Acocks Green

 

Bank Committee: June 20th 1927

 

2721   The Town Clerk reported to the Committee upon the cases of A S Slater (property, 24 Flavells Lane) and J H Stirk (Property, 143 Court Lane, Erdington) in regard to which matters reference had been made at the meeting of the House Purchase Sub-Committee held on the 30th ultimo.

 

The Town Clerk explained that in the case of A S Slater the instruction to proceed had been rescinded by the Estates Committee on the 15th February last and he had been informed that a communication dated the 9th March, 1927, to that effect had been sent by the Estates Department to the Municipal Bank. The General Manager stated, however, that he had had a careful search made in his department and no trace could be found of the communication in question ever having been received, and that he had no reason to assume other than the matter was proceeding.

 

In the case of J H Stirk, where a complaint of delay in completion of the mortgage had been received, the Town Clerk explained that the root of title given in the Abstract of Title received from the Borrower's solicitors being a marriage settlement, was unsatisfactory and that Mr Stirk was incorrect in stating that the particulars given had been accepted previously by building societies and other bodies as sufficient title.

 

2722   RESOLVED:- That the General Manager be directed to send a communication to Mr Stirk, pointing out that the statement contained in his letter was incorrect having regard to the circumstances above mentioned.

 

2723   The Chairman stated that in his opinion some improvement might still be effected in the method whereby cancellations and other like matters could be promptly brought to the notice of the Bank by the Estates Department, and it was proposed that this should be one of the matters for discussion at a conference on house purchase, which it has been decided should be called in the near future.

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