Buying out council's share in shared/affordable house

dingoxh

Hi all,


I bought an affordable house in 2007 in the Dublin City Council area. The market value was €275,000 at the time. I bought it for €206,000. I reckon it's now worth €175,000ish.

My salary at the time wouldn't give me a full mortgage so I went through the Shared Ownership option with me buying 60% and renting the other 40% from DCC.

I am now considering my options. I rang up the council and they said that there was €191,000 owing on the house. I have no idea where they got this figure from as I only borrowed €123,600 (60%) from them. Would they adding together the balance of that loan and their full €82,400 (40%)?

They also said that I could transfer to full mortgage on the €191,000. They have booked me in for an appointment with a valuer to come around and view the place. They also said that the clawback will be gone if I transfer to the full 100% and the place will be fully mine and I am free to sell or rent it as a result. Is this true?

Also, I would like to know will they take into consideration a new market value on their 40% of the house? It's not worth €82,400 now. It probably more like €70000 given an approximate market value of €175,000.

Has anyone been through the full mortgage buyout with DCC? What was the expierience like? Any tips?

dingoxh

Well guys and gals, any thoughts?

EL_Loco

I can only assume if the council paid 206k for it, they're not going to give it to you for any less. between the 2 of you you've knocked it down to 191.

The clawback is interesting because if they're handing you a house for cost price (not market value) and not including clawback then you're doing better than the affordable housing people who initially got 100% mortgages but the council still have clawback in place. So that's a win if you manage it. You free yourself of clawback having initially paid 60%.

Anyway, that doesn't really help, I know a guy who bought out an affordable house, but not anyone who was doing the shared ownership scheme.

His situation was initially paid 185k, had clawback incluled. asked to buy it out, the markey value at that stage was more than the 185 so he paid up to the market value. it's now his house, privately, he can do what he wants with it. It would be the same for you, you've bought it outright, it's between you and the mortgage provider.

dingoxh

My mortgage provider being Dublin City Council!

society

I have an affordable place. I bought in 2004 for 180k (m.v. 325k) and now the m.v. is about 175 (with 145k remaining on mortgage). I rang the Council and I was told I can't seek to own the property outright and the only thing I could do was sell it. The Council is reluctant to release buyers from the clawback as the price might increase in time and they wouldn't get their slice of the pie. Unless the legislation changes, I don't think anyone can own their property outright. If anyone has any other info of their experience, let me know

dingoxh

Which council are you with becaue DCC are telling me that I would be free from clawback. Did you buy the property through shared ownership also? Maybe that changes the goal posts.

There is so much conflicting information out there.....

society

I originally bought under the Shared ownership scheme and then transferred to a House purchase loan with the Council. When I asked could I buy out the clawback they said no, and selling the property was the only option. Askaboutmoney.com has an informative thread on the whole issue of remortgage/sale. Some people are canvassing for the legislation to be changed to enable people to be able to remortgage without triggering the clawback. It's a v. confusing area and depends also when you bought the property and the provision in the mortgage agreement.

John Mason

my house is with shared ownership and i have no clawback.

the only thing i needed to do was keep the house for a year and get a another mortgage to buy them out if i wanted.

i bought for 196k and i owe them 158k now which i am transferring to a 100% mortgage with them

FlexBrowne

dingoxh wrote: »

Hi all,


I bought an affordable house in 2007 in the Dublin City Council area. The market value was €275,000 at the time. I bought it for €206,000. I reckon it's now worth €175,000ish.

My salary at the time wouldn't give me a full mortgage so I went through the Shared Ownership option with me buying 60% and renting the other 40% from DCC.

I am now considering my options. I rang up the council and they said that there was €191,000 owing on the house. I have no idea where they got this figure from as I only borrowed €123,600 (60%) from them. Would they adding together the balance of that loan and their full €82,400 (40%)?

They also said that I could transfer to full mortgage on the €191,000. They have booked me in for an appointment with a valuer to come around and view the place. They also said that the clawback will be gone if I transfer to the full 100% and the place will be fully mine and I am free to sell or rent it as a result. Is this true?

Also, I would like to know will they take into consideration a new market value on their 40% of the house? It's not worth €82,400 now. It probably more like €70000 given an approximate market value of €175,000.

Has anyone been through the full mortgage buyout with DCC? What was the expierience like? Any tips?

I'm in the same boat here in Waterford and to be honest, the council don't want to know. Diff is with us is that I don't live there anymore and want rid....

BrendanBurgess

irishbird wrote: »

i bought for 196k and i owe them 158k now which i am transferring to a 100% mortgage with them

Hi Irish Bird

Why are you transferring to a 100% mortgage? What are the advantages and disadvantages?