Shared ownership loan

ladyeaston

Hello can anyone who has shared ownership loan who want to change the law on this get in contact with me, as i believe it is unjust and we need to get together and change the law on this.

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ladyeaston

Hi I would like to hear from other people who have shared ownership loans and would like to change the law on this,:eek:

ladyeaston

I will check here on boards each day please get in contact

ladyeaston

hi how do i get into accommodation etc as i cannot find it on boards, so as to get this shared ownership problem sorted

Calhoun

Hi Op , I would suggest posting additional information, I.e what the current situation is , what you want to change ect .

ladyeaston

if you know any people who may have shared ownership loans on their houses to get in contact with me on boards

the_syco

ladyeaston wrote: »

would like to change the law on this,:eek:

At the moment the law is great. If you don't like it, how about you tell us why you don't like it?

The_Conductor

Ladyeaston- I've merged your two threads on this topic together.

With respect of issues you have with the Shared Ownership Loan scheme- perhaps you'd like to tell us where you're at, and why you think there is an issue? We may be able to give you a few pointers- or indeed, other people who have been down similar roads may be able to tell you of their experiences.

ladyeaston

Hi I am looking for people who might have taken out shared ownership loans and would like to change this to annunity. it would seem that some of us of a certain age are in a catch 22, so please can you all who have shared owner ship contact me with a view to getting this changed.

the_syco

ladyeaston wrote: »

Hi I am looking for people who might have taken out shared ownership loans and would like to change this to annunity.

Why do you wish to change it?

ladyeaston wrote: »

it would seem that some of us of a certain age are in a catch 22

How are you in a catch 22 situation?

ladyeaston wrote: »

so please can you all who have shared owner ship contact me with a view to getting this changed.

Do you have any idea how to do so?

=-=

I'm beginning to think that you are a reporter trying to get a story, as you're repeating what you say, but not giving any more information.

You want others to tell you about their woes with the shared ownership scheme, yet won't tell tehm about yours?

ladyeaston

Good day to you and thank you for your reply, no I am not a reporter, just a person who works for a living a plain normal run of the mill person,
I am on my own right trying to change the law which effect me and other who have shared ownership loans and are caught up with paying both rent and mortgage. I have spoken with a few people so far but we need to contact a lot of other across the country, we can share information, see our locat TDs, and try and get out of this very unfare financial trap where we end up paying more for our houses. Together we can work to change this,

ladyeaston

Many people like myself took out shared ownership loans on our houses when they were worth more than they are today. (1) All of us will have to purchases the balance of the equity within the lifetime of the mortgage.
(2) Some of these mortgages were offered to people of my age group 45- 50 plus I will still be paying my mortgage when I am retired when my money will decrease, (3) I will in effect pay twice as much for my house, paying both mortgage and rent over my lifetime and in the end may have to hand back my home and just remain a Tennant, or be homless I have tried like everyone else to make a home for my family and work hard for a living, paying my way. (4) I want to change from shared ownership to annunity, where the full amount will come off the mortage each month, (5) because of my age I would not be able apply for a annunity loan to buy out the shared ownership part, All I want is the government to swap me to annunity I will still retain my mortage paying the same amount but the money will come off the full amount.

Ray Palmer

Lady,
You are going to run into a lot of people who disagree with you. There will be very direct no holding back why this is a no fly.

So take what is said as being blunt but not insulting ( people will insult you)

1) yes this is how it was described and agreed by those who joined the scheme
2) yes people were offered these deals. Bank, council and purchaser were aware these people would retire.
3) no you aren't paying twice. You are paying half a mortgage and a reduced rent. You knew this when you agreed.
4) I can see why. You can do this by getting a full mortgage and paying back the council
5) the government might own the banks but can't tell the bank to give you the money.

Basically you agreed to a deal that got you a reduced property which was honoured. You now want to change the deal. It was certainly clear that house prices could drop as they had clauses explaining this.

There was a pretty major investment made for this scheme. There were property discounts to purchasers. Not seeing any reason why more concessions should be made on an open and clear deal that was and is good.

Also you maybe on a tracker which you would lose causing higher payments.

You need a large group and some clout to change this. It is not a likely thing.

foxy06

ladyeaston wrote: »

Good day to you and thank you for your reply, no I am not a reporter, just a person who works for a living a plain normal run of the mill person,
I am on my own right trying to change the law which effect me and other who have shared ownership loans and are caught up with paying both rent and mortgage. I have spoken with a few people so far but we need to contact a lot of other across the country, we can share information, see our locat TDs, and try and get out of this very unfare financial trap where we end up paying more for our houses. Together we can work to change this,

Your knew this when you signed up.

StillWaters

When you initially purchased the property what was your plan as to how you would buy out the Councils %?

ladyeaston

For the record we were miss guided by people who got involved who should have minded their own business and told us we could change it in a year or so. When a few of us tried we were told that is not the case. Now all I want is to hear from people who have shared ownership loans. NOT anyone who just wants to snipe at me, and put me down for trying to do the right thing, I am not a Bully and I treat each person I meet with respect. I dont want to be bullied on this web site so I am asking for the same respect that I extend to you and anyone else.

ladyeaston

can you give me any information please, on shared ownership it would seem you have some knowledge on the subject , and please I am person who treats people with respect so would like to be treated the same,

Victor

This thread can stay, but only as a discussion thread.

ladyeaston, do not post again on the matter of shared ownership loans, unless you are responding to somebody else's post.

Moderator

---

Realistically, few people will have sympathy and nobody will hand you the €50,000-100,000 you are looking for.

LoLth

ladyeaston wrote: »

For the record we were miss guided by people who got involved who should have minded their own business and told us we could change it in a year or so.

No one forced you to take advice and the argument could be made that you heard the advice you wanted to hear at the time and ignored the fact that nothing like this was written down in the agreement you signed.

Were the people offering the advice holders of any position of authority in the shared ownership scheme? Did they claim any legal or professional expertise in the scheme? Did you get any of these promises / advice in writing?

When a few of us tried we were told that is not the case.

by the same people that told you that you could originally ?

Now all I want is to hear from people who have shared ownership loans. NOT anyone who just wants to snipe at me, and put me down for trying to do the right thing,

ok. if you only want to hear from people that agree with you then I would suggest that you dont start a conversation on a public forum. Boards.ie is a discussion forum, 1 user starts a topic and other users give their opinion. if it is to agree with you, then fair enough, if it is to point out an error in your logic or a mistake in your assumptions..then fair enough. its all part of discussion. A lot of people think they are trying to do the right thing but a lot of times it turns out to be the right thing for them and not what's actually right in the eyes of the law or for people in general.

I am not a Bully and I treat each person I meet with respect.

good to hear. we should get along fine then

I dont want to be bullied on this web site so I am asking for the same respect that I extend to you and anyone else.

fair enough but please do not mistake questioning or disagreement for bullying. there is a world of difference. Just as there is a difference between making statements/demands and actually discussing an issue (hint hint).

from what I have read on this thread so far you have made a request for people to contact you to start some form of action to change a contract that you signed. As I said before, boards.ie is a discussion forum, people are free to contact you if they wish or to question your reasons/logic (and imho a solution has been pointed out already, take out a mortgage and pay off the shared ownership balance or continue with shared ownership paying half a mortgage and a supplemental rent at a reduced rate)

I'm sorry but I cannot agree with your proposal as you have framed it. Option to re-negotiate your agreement so the house can be revalued at the current market value perhaps and a new mortgage/rent agreement put in place would be a better ,and more realistic goal but, as pointed out you'll most likely lose the tracker mortgage if you have one but I'm sure a lot of people who paid full price for a home and are paying agreed mortgage rates would find it very difficult to empathise with you on this.

Kerry_2008

I only had a quick read through the thread. Am I right in saying the OP took out a loan (Albeit a convoluted form of a loan, ie share ownership) to purchase a house. And now is giving out the house is worth less etc and is looking for a deal? No offence OP but, like the rest of the people in the country that took out mortgages to buy vastly over priced house during the boom; you pays your money and takes your chances. As for whatever advice you got, unless you have something written down clearly in writing you are going nowhere.

StillWaters

ladyeaston wrote: »

For the record we were miss guided by people who got involved who should have minded their own business and told us we could change it in a year or so. When a few of us tried we were told that is not the case.

But you can change it can't you? I thought you could buy out the councils stake at any stage, providing of course you can raise the finance to do so.

I'm not a fan of shared ownership, as people can over extend too easily, and as you say, the longer the loan goes on, the older people get and the harder it is to raise a mortgage.

I really don't think there is any hope of you changing legislation in order to convert to the rent to annuity. 1. The council would be loaning you money with no security (assuming house is in NE)
2. The Council would be lending irresponsbilbly if you would not meet usual bank criteria.

That's just my tuppence, but by all means cost up your proposals and write to Jan O'Sullivan. They are very open to proposals particularly at this time of the year.

ted1

It's a sliding scale after 10 years the council own less. After 20 you own it outright.

You really need to look into it, you clearly don't know how it works.

ladyeaston

thank you for your reply , yes I am a little lost as I dont have a council house, I have built my own house with a loan from the co co they own a share of it, and yes the land is mine after 20 years as this is a claw back, but my problem is I still have to pay 95.000 in 10 years for the share that they own I still owe another 80.000 to the bank and I pay rent also so 95.000+80000= 175.000 total then on top of that I pay rent , now in 6 years I have paid only 10.000 off my mortage but have paid 3 times that in rent

The_Conductor

Ladyeaston- you've paid 10k off the principle of the mortgage, alongside your rent etc. Whats the issue? You're paying off your mortgage, slowly, alongside paying rent on the council owned portion of the property.

I actually don't understand what your issue is. You decided to access finance to build your own home via one option that was open to you. You signed a contractually binding agreement- and now because property prices have fallen, you seem to believe you deserve some sort of bailout?

I don't really understand how/why you believe you've been hard-done by?

I bought my apartment in 1998- 14 years ago, I've paid loads off the mortgage over the past 14 years- but its still worth less than the open market selling price, were I to try to sell it (which would be an interesting exercise in itself). I don't see why I should be forgiven a portion of my loan- I borrowed the money, it is my debt. Were I to be handed a wad of cash- I don't know- from a lottery win or something- it would be morally wrong of me to walk away from my debts- I would satisfy them before I spent a penny on anything else.

Have you heard of the term- 'moral hazard'? It relates to people taking responsibility for their own actions, whatever those actions may be.

ladyeaston

I dont want the mortgage to change all I want is to keep paying 1000 a month but want it to come off the whole mortgage not just the council share in which I pay rent the council and also pay rent to them because they gave me a mortgage , it like the bank given a mortgage to you, lets say they give you a 100,000, you put up 90,000 , you have to pay them back each month a share of the mortgage and also rent because they gave you the lone and they want to protect their share in the house,

ladyeaston

loan

ted1

ladyeaston wrote: »

thank you for your reply , yes I am a little lost as I dont have a council house, I have built my own house with a loan from the co co they own a share of it, and yes the land is mine after 20 years as this is a claw back, but my problem is I still have to pay 95.000 in 10 years for the share that they own I still owe another 80.000 to the bank and I pay rent also so 95.000+80000= 175.000 total then on top of that I pay rent , now in 6 years I have paid only 10.000 off my mortage but have paid 3 times that in rent

heres a example oh how shared ownship works
house value 200
you pay 100
councl pay 100

you pay mortgage 50, rent 50
before 10 years if you sell, you gey 50%, council get 50%
year 10 you get 55% council get 45%
year 15 you get 75% council get 25%
year 20 you get 100% council get 0%

the scheme was set up to stop your profiting off the councils back. after the 20% the council effectivly convert eh rent you've paid into to thremainder of the mortgage.

what exactly is your issue?

ladyeaston

I dont want anything less then what I am paying , no write off of any kind only what I am paying to be taking off the whole mortgage , no more money just a change of name on paper , and stop paying rent money but let the money I would pay on rent be part of the mortgage

The_Conductor

ladyeaston wrote: »

I dont want the mortgage to change all I want is to keep paying 1000 a month but want it to come off the whole mortgage not just the council share in which I pay rent the council and also pay rent to them because they gave me a mortgage , it like the bank given a mortgage to you, lets say they give you a 100,000, you put up 90,000 , you have to pay them back each month a share of the mortgage and also rent because they gave you the lone and they want to protect their share in the house,

If you got a mortgage off a regular bank you'd be paying 'rent' alongside paying the principle. The rent is of course the interest that a commercial lender would charge you. I pay about 6 times more in interest to Bank of Ireland on a monthly basis, than I pay off the principle of the mortgage. Its the price I agreed to pay, in exchange for them lending me the money to buy the property. My property- akin to yours, and most in the country- has fallen in value, and is worth a lot less than the loan o/s against the property. Thats life. Its unfortunate- and its not something I foresaw happening, but I have to live with it.

I don't get how your situation differs from anyone elses- other than of course you chose to borrow the money from a council, rather than from Ulster Bank or another commercial lender. Its just a different lender. You're only paying rent on the portion of the property that the council own- and have the option to buy them out after 20 years, probably at a predetermined price. Its what you signed up to.

You think that all your payments to the council should go towards the mortgage- rather than paying rent on the portion of the property owned by the council? You want to re-write the rules. I'd like to rewrite the rules governing commercial mortgages- but its a non-runner, as it does away with the moral hazard associated with personal debt. Why should you get special or preferential treatment governing your debts- aside from those provisions open to any other citizen? Why do you think that people who availed of the shared ownership scheme were somehow hard-done-by- more so than any other borrower?

The_Conductor

ladyeaston wrote: »

I dont want anything less then what I am paying , no write off of any kind only what I am paying to be taking off the whole mortgage , no more money just a change of name on paper , and stop paying rent money but let the money I would pay on rent be part of the mortgage

Aka- you're willing to pay your mortgage- but you don't want to recognise that the council own a portion of the property and are asking for rent on their portion of the property?

ladyeaston

people I know got the annunity loan they dont pay any rent portion of the mortgage I was to old to get the same , so I ended up with a shared ownership loan , my neighbour pays 1.000 a month off her loan, I pay 1.000 off mine, the 1.000 comes off her full mortgage , mine is split between rent and mortgage , both of us got our mortgage from the same county council but because of my age I will pay more,

ladyeaston

I wish the council owned a share of the house then I would not have to pay for everything I could ask them to share in the insurance , repairs, and after 20 years buy it from them at a very small amount, no more stress, sleep well, and more money in my pocket, jee the travellers have the best life , live free pay nothing, all fun aside I love my house and will pay my way but just want fareness. happy xmas

ladyeaston

no I dont care if the house is worth less , thing is it is not, i dont mind paying the full mortgage i just want the payments to come off the full mortgage like everyone else who have an annunity loan, just to be the same as if i got the loan from the bank, i am very thankfull to have a loan so as i could buy my home and will pay full mortgage plus interest, but not rent on top of that

Stheno

Is it not the case that after twenty years you will own the house outright as you will have paid the council back for the half they funded, and paid off your portion (mortgage)?

John Mason

Stheno wrote: »

Is it not the case that after twenty years you will own the house outright as you will have paid the council back for the half they funded, and paid off your portion (mortgage)?

this is what i had with my shared ownership. ichanged to 100% mortgage cos i am throwing lump sums at it at, to pay it off quicker but my interest rate increased, so there is absolutely no difference in amount i was paying and the am amount i am paying now.

I think the OP is very confused about what she entered into contract with

StillWaters

Are you sure you are not paying an annuity, according to the following link, the rental portion is a mortgage.

http://www.askaboutmoney.com/showthread.php?t=171257

I must admit I didn't realise this, and presumed the rent was just that.

ladyeaston

StillWaters wrote: »

Are you sure you are not paying an annuity, according to the following link, the rental portion is a mortgage.

http://www.askaboutmoney.com/showthread.php?t=171257

I must admit I didn't realise this, and presumed the rent was just that.

Hi thank you so much for you imput This is why I got on this boards.ie so as to hear from smart people like you, the link is great I have read I and feel so much more informed thank you again and enjoy the coming season, as I shall put this to bed until the new year.

regards

Gwen2000ie

Hi,

My brother bought a apartment on shared ownership, say the apt was worth 260k at the time and he got it for a discount of 200k. he got a mortgage from the council for half and he pays rent on the other half.

The problem is, while his mortgage half is going down as he is paying it off. the rent on their half is going up each year.
(they increase it every year) at the same time the rented part not decreasing.

So he is paying over a 100 euro more now for rent on half than he is on his mortgage for half. which seems just crazy.

Now.. he has to buy the other half off them within a certain period of time, not sure but think it might be 20 years or something.

The natural solution to this would be to buy the council half off them as he would be paying a mortgage on the lot and not subject to these rent increases every year.

What I cant find out is how is this calculated, All i can see in his documentation is senarios where the market value has increased when you go to buy them out. they take the market value of the apt and you pay the difference.

Obviously this is not the case though, the apt is only worth say 90k in TOTAL.

Question 1

If he was to buy them out, would he have to pay half of the market value of the apartment now. ie 90k/2 = 45k
to get full ownership of the apartment. Or is it the case that they will want either 100k back?

Question 2

If the answer to the above question is that he would have to pay half of the market value today ie 45k. The property is only worth 90k and given that he already has a mortgage with the council for 100k will the council give him a further mortgage of 45k making the total mortgage 145k on a property only worth 90k! you see where i am going with it, they will have insufficient security on the mortgage.

I have been researching on the internet and cant find anyone that is in this situation but i am sure lots of people are!

bunty04

Hi its been a few years did u progress this any further?