Value Linked Loans

This page gives details of our Value Linked Loan Scheme to dioceses for assistant staff (clergy and laity) housing and housing in the event of clergy marriage breakdown and outlines the management and financial principles of the Scheme.

Our Value Linked Loan Scheme is a means of assisting with the long-term provision of housing for assistant clergy and also clergy spouses whose marriages have broken down. The Scheme helps to provide accommodation normally held by a DBF either as part of its corporate portfolio or held in trust for a PCC and such property cannot therefore be in benefice or glebe ownership. Funds for the Scheme are limited and loans are made solely under our general investment powers and form part of our investment portfolio.

The term "value-linked" means a sharing of the value of the property for which the loan is advanced. In other words, the repayment of the loan is made in equivalent proportion to the original amounts advanced. For example, a house is bought for £100,000. We provide a Value Linked Loan (VLL) of £50,000 (50%). It is sold for £150,000 net. Our 50% share has increased to £75,000, and that is the sum repaid. Interest is currently charged on VLLs at an initial rate of 5% per annum for assistant clergy housing and 4% in the case of clergy marriage breakdown. These starting rates are determined by us and varied from time to time at our discretion but the interest on loans once made to dioceses is increased each year in line with increases in the Retail Price Index. The Scheme is not suitable for short term housing requirements which are best met via the rental market or other temporary arrangements.

More details about the Scheme are included in section 8 of the Parsonages and Glebe Manual.

The following Specimen Application Forms and Notes may be downloaded as separate WORD templates/documents by clicking on the links below:

VLL1 - Housing for assistant clergy (Application Form)

VLL2 - Housing for assistant clergy (Notes)

VLL2A - Housing for assistant clergy (PCC Notes)

VLL3 - Housing in connection with clergy marriage breakdown (Application Form)

VLL4 - Housing in connection with clergy marriage breakdown (Notes) (See also VLL5)

VLL5 - Summary of scheme in connection with clergy marriage breakdown

Pastoral Division
Church House, Great Smith Street
LONDON
SW1P 3AZ

Telephone: 020 7898 1000
Fax: 020 7898 1873
Email: pastoral@c-of-e.org.uk.

© The Church Commissioners for England 2005 (Last updated 1/6/2005)