A Strathmashie Family

A small group consisting of Laggan Community Trading Company, Highland Council, Rural Housing Service and Lochaber Housing Association developed the main funding elements for the project and the Strathmashie bid. The funding brought together for the bid included improvement grant funding from Highland Council, an Environmental Renewal Grant from Moray, Badenoch & Strathspey Enterprise and loan finance from a bank. These resources totalled £166,700. The total cost of purchase and renovation was estimated at £269,000- a funding shortfall of £102,300. The bid to the EHI was to meet this shortfall. In December 1997 the community heard that their bid to the Empty Homes Initiative had been successful. There remained one part of the funding jigsaw for Strathmashie that had to be put in place before the project could go ahead: the bank loan.

The Bank Loan The bank loan was a crucial part of the development and was to be repaid from the rental income generated by the houses. As such the amount of loan which could be raised depended on what the rents for the houses would be. All the partners and especially the community were determined to keep the rent for the houses the same as council rents (approx. £185 per month). It was therefore important that Laggan Community Trading Company was able to secure a good deal from a bank. It was decided to approach the Triodos Bank to see if they could provide loan funding at a preferential rate. The Triodos Bank is based in Bristol and is a bank that specialises in providing finance to community, environmental and social projects. Triodos were first approached in February 1998. They expressed an interest in becoming involved and worked with the community and the other partners to see the necessary steps completed to enable them to approve a loan. Laggan is the first loan venture for the Triodos Bank in Scotland.

"Triodos were first approached in February 1998 by Rural Forum to see if we would be interested in completing the funding for the purchase and renovation of 5 cottages on the Strathmashie Estate near Laggan. This would enable the local rural community to increase the provision of low cost housing in the area. This initiative clearly met the bank's criteria of only lending to projects that deliver significant social and/or environmental benefits. We were impressed by the community's record of achievement in adversity. With this project, there was a willingness on the part of all four parties involved (the Community, Highland Council, the Rural Housing Service, and Badenoch & Strathspey Enterprise) to make it work. This co-operative approach meant that solutions were found to complete the project's funding thereby enabling the bank to agree a loan by the end of 1998. The co-operative approach also meant that there were times where communications/ responsibilities could have been clearer. We are very pleased to be part of this successful and beneficial project." David Cousland, Triodos Bank