PROJECT DESCRIPTION
BACKGROUND
The LEG-UP project, led by Onesto, aims to address the critical need for affordable, energy-efficient housing for low-income buyers in Europe. The project unites international partners to develop an innovative financial model that combines mortgage financing with energy renovation services. By leveraging private capital and partnering with One-Stop Shops (OSS), the project provides holistic support, ensuring homes meet modern energy-efficiency standards. The financing covers both home purchases and renovations, with buyers participating in advisory and support programs to guarantee high-quality renovations. This approach reduces risks for lenders and homeowners, making private financing accessible to low-income buyers and enabling immediate energy-efficiency improvements. LEG-Up will impact three key areas: increasing the availability of energy-efficient homes, improving housing affordability, and reducing carbon emissions. Pilot projects will be launched in Flanders and Spain to refine the financing model. After thorough evaluation, the scheme will be ready for broader implementation. Strong ties with OSS in Spain and Belgium will facilitate rapid scaling in these regions, with plans for European-wide expansion following project completion. LEG-UP is expected to mobilize over €2 billion in private investments over six years, offering significant opportunities for securitization with an ESG focus. Mortgages will be originated by a social lender and subsequently transferred to a warehouse that utilizes blended finance. Once sufficient volume is accumulated in the warehouse, and both the mortgage loans and the collateralized properties meet predefined quality standards, the assets will be permanently re-financed through a securitization process, attracting long-term institutional and private investors. This structured approach will enhance investor confidence, ensuring long-term private capital flows into sustainable, energy-efficient housing solutions. The project will reduce energy poverty, improve access to financing, and contribute to the EU’s climate goals by helping decarbonize the housing sector. By focusing on low-income buyers of older homes, LEG-UP fills a crucial market gap, and through strategic partnerships and an innovative financial model, it has the potential to create lasting change in the European housing market. This project aligns with the EU’s just transition goals.