₦airaland Forum

naptu2: [size=14pt]Lagos Home Ownership Scheme (Lagos H.O.M. S)[/size]

THE LAGOS HOMS

 It has been identified that the greatest obstacle to achieving the goal of housing for all is the absence of enduring mortgage system.

 

Provision of Accommodation is by nature capital intensive and affordability implies that for low and medium income earners to be able to buy houses, there must be in place a mortgage finance system and one of the major challenges that impedes home ownership in Nigeria is the inadequacy of the mortgage sector.

 

Faced with the ever increasing need to provide adequate accommodation for the citizenry, the State Government reaches the need to assist the citizenry in meeting their shelter aspiration as well as facilitate the creation of long term and sustainable wealth.

 

Lagos HOMS, a home ownership scheme that affords first time home buyers who are resident in Lagos State the opportunity to own their homes.

 

FEATURES OF THE SCHEME

 

·        Tenor minimum of 10 years and maximum of 20 years.

·        Facility Amount. This will be subject to the 70% balance of the cost of the type of Houses purchased.

·        Equity Contribution: Applicant would be required to make a minimum equity contribution of 30% value of the property he/she intends to buy.

·        Pricing

-Interest rate 6%

-Fee N10,000 (Civil Servant)

-Admin. Charges N25,000 (Others)

-No other charge

·        Repayment

-Equal periodic principal repayment. Interest to be paid on reducing balance or

-Equal monthly installment of both principal and interest.

·        Security

Deed of  Mortgage over the property to be acquired.

 

 

 MODE OF OPERATION FOR THE SCHEME

 

·        Interested Applicants must obtain a form from Ministry of Housing or download form from the Lagos State Government website (www.lagosstate.gov.ng).

·        Applicants should fill the form and submit to Ministry of Housing accompanied with payment of N1,000 for the Application Form.

·        Applicants who have submitted his/her application forms will be directed to any of the three receiving banks for pre-qualification.

·        All Applicants pre-qualified and recommended by any of the receiving Banks will be issued with Letter of Offer.

·        Applicants are expected to pay the 30% equity contribution to any of the three collaborating banks.

·        Applicants to submit proof of payment and an acceptance Letter to Ministry of Housing.

·        Ministry of Housing refers documents to Ministry of Justice to prepare and execute Contract of Sales and Deed of Mortgage Agreements.

·        Housing releases Letter of Confirmation of Allocation and keys to successful Applicants.

 

CONDITIONS/ELIGIBILITY FOR QUALIFYING FOR THE MORTGAGE SCHEME

 

-          Applicant must reside in Lagos

-          Applicant must be under 60 years of age.

-          Applicant must have a verifiable means of income.

-          Applicants should be credit worthy.

-          Successful Applicants are expected to pay 30% of the value of the house they intend to purchase.

-          Houses purchased under the scheme must be occupied by the beneficiary and cannot be transferred or rented out until all obligations has been fulfilled

-          Beneficiaries are to pay 6% interest rate on the mortgage loan.

-          Applicants must have been working for his/her current employer for at least six months (and must be so confirmed by employer).

-          Applicants must be first time Home Buyers.                               

FINDING

The Lagos HOMS is a mortgage scheme that is completely funded by the Lagos State Government.  Apart from providing the pool of Houses, Government also provide the funds for the mortgage facility being granted.

 

 

GLOBAL TERM SHEET FOR LAGOS HOME OWNERSHIP AND MORTGAGE SCHEME

 

Background:- This term sheet tends to provide a standardization for administering the Lagos State Home Ownership and Mortgage Scheme to all residents of Lagos State. Though priority will be given to Civil Servants in Lagos State Ministries and Parastatals, the target market is all residents of the state (irrespective of tribe), that is Lagosians. The purpose of the scheme is to encourage first time home buyers with verifiable source of income to own their own houses.  To administer this scheme for LASG, three banks have been nominated; FBN Mortgages, Skye Mortgages and Zenith Bank Plc.

 

Definition of Risk Acceptance Criteria: For the purpose of this term sheet, the table below spells out the risk acceptance criteria for effective administration of the scheme which will be adopted by the participating banks involved.

 

Risk Acceptance Criteria

 

 Pre – Qualification /Screening Process:

1.     Lagos State Government will first pre-qualify the intending beneficiary who must a first time home owner in Lagos State and  the claim of first time home ownership must be administered under an Oath.

2.     The pre-qualified individual must open an individual current account with Bank. The account will serve for both the purpose of paying 30% equity contribution and also for monthly repayment.

3.     The beneficiary will submit hisher allocation paper from LASG to the bank along with request letter and apply for a mortgage scheme under Lagos State Home Ownership Mortgage Scheme.

4.     Upon meeting the Risk Acceptance Criteria tabulated above, approval will be conveyed via an offer letter and monthly repayment schedule communicated to the beneficiary.

5.     For proof of affordability, salary earners are to submit pay slips for the past 6 months and salary account statement for the past one year while self employed would submit company profile, three years audited account statement and businesspersonal account statement for the past 12 months.

6.     Monthly repayment as stated in the repayment schedule commences as soon as offer is accepted and condition precedent to commencement of monthly repayment is met.

7.      Bank will communicate acceptance and approval to LASG for release of Keys to the beneficiary to take possession.

8.     Update on monthly repayment will be given to LASG on monthly basis.

9.     A dedicated account will be opened which will warehouse all monthly payment from the buyers which would have joint signatories from the Ministry of Housing $ Ministry of Finance.

 

Event of Default

This occurs:

1.      If the beneficiary fails to make repayments for three consecutive times.

2.      If repayment has not been regular and there been defaults at three different times which in the opinion of the banker has raised doubt on the ability of the beneficiary to continue with the repayment, such issues will be reported to LASG who will take steps towards foreclosure.

 

Foreclosure of Security:

The interest on the properties resides with Lagos State Government, hence the right to foreclose lies with them.

 

 

 

MonitoringTracking of Repayment:

This shall be the joint responsibilities of LASG and Bank. Bank on a monthly basis will be updating LASG on the repayment update that shall aggressively follow up with any loan defaulters for regularization.

 

Accelerated Repayment:

This shall be allowed so far 90 days notice is given which shall also be communicated to LASG.

http://www.lagosstate.gov.ng/pagemenus.php?p=106&k=29

naptu2: Now I'm going to give you links, stories, pictures, etc (if the anti-spam bot doesn't ban me), but before that I'm going to give you some background.

I believe that Fashola came to complete what Jakande started. Many of Fashola's policies are not really new, but he is returning Lagos to what it was in the 1950s and also completing or improving what Jakande started in the 1980s (I also have to admit that some of the projects were started during Tinubu's administration). (I'm smiling right now because I remember that my family were staunchly opposed to Jakande's education policies).

Lagos HOMS: Jakande (well, Lagos State Development and Property Corporation [LSDPC) built the famous Jakande low cost houses and offered them for sale to Lagosians. The key to the success of this scheme was mortgages. You pay a small initial deposit and pay the rest over the next twenty or thirty years. This made it affordable to the average Lagosian. However, there was a flaw in that model and Fashola has thought of a way to address that flaw. Multi-millionaires bought a lot of the flats/houses and resold them at higher rates. I know one such man who still has several flats in several low cost estates in Lagos.

With Lagos HOMS you must swear an affidavit that you do not own any other house in Lagos and you are not allowed to let out the flat/house (that is, you must be the one occupying the flat) for the 20 or so years it will take you to pay off the mortgage.

There are also several other programmes and policies that I will post here tonight (if sleep doesn't take me away), including the skills acquisition centres, the Lagos Micro-Finance Institution, Kaiyero and other markets, Isale-Gangan urban renewal (I'll even show you pics of Isale-Gangan in the 1950s and 90s), the Destitute's Home, etc.

jakaiso: I understand you Bros -but not poor people. Poor people in America live in projects and trail parks or Section 8 housing.I dont expect poor people to live in such house or condos. But it should not be a big deal for someone in the middle class.The middle class is the strenght of any country that wants to develop economically. When all you all have is the poor, very poor, rich and very rich-that country is heading towards disaster.
The credit system allows the poor to graduate to get to the middle class and acts as a safety net for the rich who make lossess in business.
No one needs to pay back credit over their lifetime (though many do) thats slavery.

You can pay a car loan back in 3 years -a mortagage in 5 to 15 years. The key is financial wisdom and planning.

In my country Nigeria-unless you fall into either of these catagories: you steal, are born into wealth-or you are the type that can really husssle, take risks, generate ideas that are turned into money-most Nigerians dont build their own houses until their late 40s and 50s or buy a car until their 30s. It took one of my Uncles who was the GM of an Insurance company in the 90s 20 years ( when he was almost 60) to complete a house in Lanbe area after Sabo/Ojodu- omo onile had taken his first 2 plots of land and even now-his house is actully what he planned to be the BQ-there is still a vast plot of land left which he doesnt have the resources to complete. Another Uncle who is a Prof at LASU completed his house 2 years ago at the age of almost 65.
Whereas another Uncle ( i have 11 Uncles and Aunts on my mums side!) who was a hustler and risk taker had built his house before he was 40 in 1980 in Kaduna! Of course for my Uncle who remained in the village -having a house was no big deal.
If these Uncles (and Aunts) had had access to the credit system -they could have bought houses way back in the late 70s ( they all graduated from Universities in the 70s.)
In the USA- a 25 year old with or without a degree can buy a house-if hes 'ordinary' the house can be paid off by the time hes 55, if hes fast-he can have it paid off by the time hes 30 to 35.
And most cars are paid off in 2 to 5 years.

The credit system helps the middle class who in turn develop the economy of a country!

Obiagelli: Oga naptu2 that lovely thread has gone tribal, I was planning on staying off NL for a while as this tribal wahala is getting to me offline

Obiagelli: Ahhhh see allegation

ebankole: mo ki gbogbo eyin omo ile yoruba o,eyin omo oduduwa gbogbo yin mo ki o.
adupe-awon kan ni eko ni kan lo da'nle yoruba wa,sugbon pe ogun,ibadan na tin da ra- forward ever...OP oduduwa a gbe o-amen in jesus name.

eastOFwest: The purpose of this thread is futile and is obvious to any sane thinking person. If you can't list the owners of these houses, then there is no way of knowing if they are bini, urhobo, tiv, igbo, ijaw, yoruba, Lebanese, Indian etc. Lagos is a cosmopolitan city and attracts people from everywhere. Its geographical location being in Yoruba land has no bearing on property ownership. For example, more than 80% of properties in central London are owned by foreigners!

Now, if you go and take pictures of properties in Yoruba towns like Ede, Ikere, Owo, Ilesha, etc, then it will be difficult for anybody to say they are not owned by Yorubas.

bittyend: Yoruba money.

My uncle's estate is there representing for the big spenders and I can see ibos crying as usual.

Starin' at the world through the rear view with my new chink eyes.

FRDChickenisha: You're doing a great job, keep naming the owners abeg

ilugunboy: These people are really pushing you enought to get into this roforofo...they are defintely not going down well with your easy and gentle disposition on NL..they want to fight you..

ilugunboy: Madam..please just log out from this thread...obviously you are not enjoying it all...but this is how many people catch their fun on NL...e tribal fight dey sweet..

naptu2: The controversy is not about the origin of the Oba. There are many variations on the story, but let me quickly give two accounts, just to make things clearer.

1) (Lagos version) Olofin, an Awori from Isheri, who is also believed to be a son of Oduduwa founded Lagos. He and his sons founded a fisherman cooperative society called Aladejo, or Idejo for short. He made Ashipa, a yoruba man with a Benin wife, mediator between his quarrelling children. When Ashipa died, Olofin invited Addo, the son of Ashipa, to return from Benin to take up the role (after the quarrel between Olofin and the Oba of Benin had been resolved). The Idejo gave him land, a disused pepper farm, on which he built his house (Iga Idungaran - Palace on a pepper farm). When the Europeans arrived, they mistook the wealthy mediator (Oba of Lagos) for the king.

2) (Benin version): Oba Orhogbua of Benin had established a war camp (Eko) as a base for raids against Dahomey. He placed a viceroy, Aisikahienbore, over Lagos. When the viceroyy died, Edo, his son, succeeded him. The Oba had imprisoned Olofin (who originally lived on the land) in Benin. The Oba later released Olofin after Olofin promised to obey the viceroy. The yoruba corrupted both names to Ashipa and Ado.

These are just two versions of the story. There are more. However, all the stories agree on some basic facts. (1) The Oba of Lagos came from Benin. (2) The Idejo are awori descendants of Oduduwa. (3) The Oba of Lagos owns no land, except for the palace (Iga Idungaran). The Idejo own the land of Lagos (Onikoyi owns Ikoyi, Ojora owns Ijora, Oniru own Iru [Victoria Island+Maroko], etc).

Usually, when there's a war in Lagos, the war chiefs, who came from Benin with the Oba would stay and fight, while the Idejo would retire to their lands. The dual nature of the origin of Lagos has caused a lot of controversy in the past. Some chiefs have declared that the Oba has only limited authority over them, either because (1) they were also kings in Benin (eg Obanikoro), or (2) because they see the Oba as being merely a mediator.

The Idejo families include

Oniru - they owned Iru (present day Victoria Island & Maroko)

Onikoyi - they owned Ikoyi

Ojora - they owned Ijora

Oluwa - they owned Oluwa (present day Apapa)

Oloto - they owned Oto

Onitolo & Aromire families - together they owned Idumota

Onisiwo _ they owned Tarkwa Bay & Ogogoro village

deols: Does the estate belong to d king?

CAMEROONPRIDE: How do you know those canons work?

debetmx: 1) I don't have any proof but that jerk has done it before and he is just a lawless SAN.

2) I live in Ikotun/Egbe, Ile Iwe Bus Stop, the same area boys and agberos have always operated with impunity yet you see them their every day. Actually, I still saw them this morning while I was leaving for work.

I guess you are ACN member?