Our Model

Future Folk is a cooperative society which uses a mutual home ownership model. 

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   © Lauren Goodey 'Mouse Patrol'

The mutual home ownership society (MHOS) financial model will be used to finance the building of a co-housing development. In a MHOS, the cooperative society leases its co-housing dwellings to tenant members who will pay a monthly contribution, a portion of which forms their equity share within the cooperative society over time. 

 

Unlike other cooperative housing, the MHOS model allows members to accumulate equity shares with the co-op which can be recuperated when you wish to move out. Your equity share can be bought upfront (much like a deposit when buying a home) or accumulated as part of monthly ‘rental’ payments (in a similar way to conventional shared ownership products) or as a combination of the two.

However, unlike conventional property ownership, the equity owned by members of a MHOS are shares in the society and its assets as a whole, rather than the individual homes themselves. 

 

Households will make monthly payments to the MHOS, which will serve three purposes:

  • to pay the interest on the loans FFS has taken out to finance the purchase of land and development of properties

  • to build up a community pot, and

  • to build up residents’ equity unit shares

To read more about our vision, financial model and legal structure, please see our project development plan.

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Financing The purchase of land

Future Folk will soon be raising loan stock to finance the purchase of the land

   © Lauren Goodey 'The Beach'

As a cooperative society, Future Folk is able to raise loan stock, which is a loan in the form of an unsecured fixed-term, fixed-interest bond. The capital raised from this process will be used to purchase land in Sussex for a co-housing community and associated society enterprises.

There are two categories of loan stock investment.

  • Read more about loan stock here

Resident member loan stock

If you wish to be a resident of the co-housing community you can invest loan stock,  which will be used to purchase the land. Once the co-housing community is built and you move into your dwelling, the loanstock you invested will be converted into your equity share in the co-operative. For example, if you were to invest £50,000 in loan stock this would be converted to £50,000 equity share and you would pay a monthly contribution to the co-operative until you had bought the remainder of your equity share. If you wish to invest resident member loan stock, please read the 'Join us' page becoming a resident member.

Supporter Loan stock

This is loan stock that is invested by people or organisations (such as other co-operatives) who wish to invest money at a fixed rate for a fixed period because of the benefits the investment would bring.