Shared Ownership Scheme - Anyone?

frantic_mel

Hi guys,

I have read the explanations on the Shared Ownership Scheme in order to get a house from the council. But i would like to hear from those who have tried it or knows anyone who did. How are you finding it etc.

Much help is appreciated.

Mel

Lainey

hey mel.. i don't know the rates you pay back or anything but i know two people who got it and they were very pleased.. they are living in new homes, lovely houses and found the payback good.. only thing is if buying a second hand home they can be picky.. they have to pass the house your buyin and only give up to 130g as far as i know.. not many houses for that in top nick..

sceptre

Originally posted by Lainey
they have to pass the house your buyin

Indeed they do. They basically need to establish that the house is in good nick and an adequate security for the loan. 1966 Housing Act IIRC.

(if anyone is into legalese do a google for "Ward v McMaster" for the laugh)

Victor

Essentially you take a mortgage on half the property and the council pays for the other half. You pay the mortgage on your half and rent to the council on the other half, which works out cheaper than a 100% mortgage. If you sell the property with in a set period, tpyically 10-15 years, the council shares the profits with you. I imagine if you search your local authority site you will find details of their scheme.

frantic_mel

Hey guys,

I checked out limerickcity.ie and there was nothing there, so i checked out limerickcoco.ie and there was some information there, but i would like to talk to people who have actually done it.

When they say your allowed apply for the scheme, how do they calculate to see what the maximum loan can be given. Is it calculated by the price of the house, or by the percentage that you are buying from them.
i.e if a house costs 180, 000 obviously we would not even been allowed borrow that amount, so if we would be buying a share of 50 % from the council, do they calculate if you can pay back that 50% which is 90, 000 Tried speaking to someone on the phone, were not that helpful.

Any help is greatly appreciated.

Mel

Hellrazer

I bought my first house under this scheme back in 1996.The way it works is that the council loans you the full amount for the house but this is made up in mortgage(which goes on 2.5 times your wages +your spouses)+(rent at 5% the value of the rented portion of the house).
Plus you only pay €1270(Was £1000 when we did it) up front which can be used as a deposit on the house or to pay your solictors fees if you use the councils solictors.

Example

House is €100,000(We wish!!!!)
Your wages will only get you up to say €75,000
Council then agrees to loan you the full amount(€100,000) 75,000 at the standard interest rate at the time and rental of 5%(OF THEIR AMOUNT) per annum so in the case above the rent amount is €1250 per year or €104 per month PLUS the mortgage on the €75,000.
In our case I was only 19 and the house we were buying was £50,000.My wages got me up to £25000(was only on £10,000) of a mortgage and the balance was in rent.

It is a great way to start out--The house is legally yours except for the rented portion which you can buy out at anytime.I bought out the rented portion after 2 years when I was earning a lot more.
I then sold the house for £120,000 and moved into the house Im in now.

The only thing I will say is Get your own solictor---The team of solictors the council I dealt with had were a bunch of muppets.A house sale which should have taken 3-6 months with any other solictor took 13 with this bunch.
HTH
Richie



**Edit***VICTOR(Sorry Gordon) the council doesnt actually share the profits you make on the house with you---All they ask for is their rented portion + 5% interest per year in line with inflation(it was 5% when we had were in the scheme and that only if you sell the house without first buying out the rented portion)

Victor

I imagine go in and talk to the Housing Department. Did you see this link? http://www.limerickcity.ie/services/housing/hs_forms.html

Dublin City Council (each scheme will have differences)
http://www.dublincity.ie/services/loans2.html#Shared

http://www.dublincity.ie/services/forms/frmdocs/shared_owner_info.doc 2,296kb
http://www.dublincity.ie/services/forms/frmdocs/shared_owner_applic.doc 2,301kb

frantic_mel

Thanks for you reply guys, maybe you can help me with this

My wage is 17,500 per year
My b/f is on disability(partialy blind) his income is 9, 240 per year

A total of 26, 770

Does anyone know or can calculated how much of a loan we can apply for under this scheme.

Here in Limerick the price of houses are between 170,000 to 250,000 thousand.

Anything below 100,000 are basically in scumbag housing estates and i would not like to go there.

Mel

frantic_mel

Has anyone done this guys