Council tenants purchase scheme

wardy2

Has anyone applied for this new council scheme to buy their home and got any update on it ?

kerosene

Meath county council seem to be lagging behind other county councils and have nothing on the new scheme on their website. I was told all exsisting tenants would get an info pack in the post in Feb, but nothing has arrived yet.

Sleepy

Why on earth is such a scheme still being offered when councils are desparately short of social housing stock?

wardy2

Sleepy wrote: »

Why on earth is such a scheme still being offered when councils are desparately short of social housing stock?

I'd put my name down in January in the Dublin city Council and I was told I get something in the post in two weeks time

Rang few times and got told theirs notting being done at the moment and their still taking names...

Mrs OBumble

Sleepy wrote: »

Why on earth is such a scheme still being offered when councils are desparately short of social housing stock?

I understood that people could not buy their own currently allocated houses, but only new houses constructed by the council for the purpose of sale to tenants.

wardy2

Mrs OBumble wrote: »

I understood that people could not buy their own currently allocated houses, but only new houses constructed by the council for the purpose of sale to tenants.

In the new scheme offers new and old houses to buy with a discount...

rawn

I thought this scheme ended years ago? My dad has been in his council house nearly 30 years, he would love a chance to buy it.

Bored_lad

As another poster has said why is this scheme being operated when councils have a shortage of social housing and we are constantly hearing of huge waiting lists.

Lux23

Cash? I believe you can use money to pay builders to draw little pictures of houses and then build them.

ballyharpat

Lux23 wrote: »

Cash? I believe you can use money to pay builders to draw little pictures of houses and then build them.

There must be another reason, the cash after a discount, is only a fraction of the cost of a council house, since they cost much more than a private house to build for some reason.

foxy06

Nothing happening with wicklow council either.
Whether you agree with the scheme or not it's being implemented. I understand people being concerned about social housing being sold but there are good points to the scheme. For instance it is incentive for people to build good communities and take good care of a property that they may not have done if they were 'only renting'. Take for example a family that have lived in a council house and have now improved their circumstances to be able to afford a mortgage but not for a house in private estates near their employment but possibly for the council house they are renting. They wouldn't be leaving the house if they couldn't buy elsewhere so it isn't as if they would be handing it back as they couldn't afford elsewhere. Why not sell the house to the tenant to encourage stable communities instead of ghettos that no one wants to live in or deal with.

quadrifoglio verde

foxy06 wrote: »

Nothing happening with wicklow council either.
Whether you agree with the scheme or not it's being implemented. I understand people being concerned about social housing being sold but there are good points to the scheme. For instance it is incentive for people to build good communities and take good care of a property that they may not have done if they were 'only renting'. Take for example a family that have lived in a council house and have now improved their circumstances to be able to afford a mortgage but not for a house in private estates near their employment but possibly for the council house they are renting. They wouldn't be leaving the house if they couldn't buy elsewhere so it isn't as if they would be handing it back as they couldn't afford elsewhere. Why not sell the house to the tenant to encourage stable communities instead of ghettos that no one wants to live in or deal with.

Because theres a family with two kids living in a hotel

And I'm in the camp that those who can only afford to have kids by raising them on the tax payers tit should keep their legs shut until they no longer need state supports.


This is council built stock at a time when councils have negative stock. There is no reason at all why that stock should be sold to someone below the cost of replacing it for a similar sized house in the same area
The tax payer should not be held liable for a person wanting to own the roof over their head

mattlennon2011

wardy2 wrote: »

Has anyone applied for this new council scheme to buy their home and got any update on it ?

Yes have applied any of the banks will not give mortgages on new scheme too many conditions council have,so it's impossible to get mortgage of a bank to buy louth county council keep saying end of the month iam listening to that since February it's now May,I would also say any of the council budgets will not have money to finance all of these

kerosene

Maybe the credit union would be more understanding.

twowheelsonly

Sleepy wrote: »

Why on earth is such a scheme still being offered when councils are desparately short of social housing stock?

quadrifoglio verde wrote: »

Because theres a family with two kids living in a hotel

To be fair, anybody interested in buying their house have probably been living in it for 5/10/15/20 years or whatever and are unlikely to be vacating it any time soon whether they're renting or buying it.

Selling these, in particular to longer term tenants, generates cash for the councils to expand their new stock and then maybe the families in the hotels will have a chance of getting something.

That has always been the way that Councils handle their stock and makes perfect sense to me.

wardy2

mattlennon2011 wrote: »

Yes have applied any of the banks will not give mortgages on new scheme too many conditions council have,so it's impossible to get mortgage of a bank to buy louth county council keep saying end of the month iam listening to that since February it's now May,I would also say any of the council budgets will not have money to finance all of these

This was the last email I got back from Dublin city council back in March

"We are still awaiting information from the Government regarding this scheme. Our housing section wish to advise that anyone who registered will be contacted when we have more information"

claregal1

quadrifoglio verde wrote: »

Because theres a family with two kids living in a hotel

And I'm in the camp that those who can only afford to have kids by raising them on the tax payers tit should keep their legs shut until they no longer need state supports.


This is council built stock at a time when councils have negative stock. There is no reason at all why that stock should be sold to someone below the cost of replacing it for a similar sized house in the same area
The tax payer should not be held liable for a person wanting to own the roof over their head

Anyone in receipt of 40 % of their total gross income from social welfare is not allowed to purchase under this new scheme ........ so I don't see how this scheme is effecting the tax payer ???

athtrasna

Mod note
This thread is about the purchase scheme only. It is not a place to discuss the social welfare system and issues you may have with it or people in receipt of welfare benefits. Thanks.

mattlennon2011

My own credit union won't give loan maximum it will loan is 25000 to any member keep posting any news as soon as I hear from louth county council I'll post,it seems it will only be council mortgages as banks won't deal with council property,all Tennants are waiting and ready for scheme it's legislation now they can not go back on it now

kerosene

mattlennon2011 wrote: »

Yes have applied any of the banks will not give mortgages on new scheme too many conditions council have,so it's impossible to get mortgage of a bank to buy louth county council keep saying end of the month iam listening to that since February it's now May,I would also say any of the council budgets will not have money to finance all of these

What conditions are the bank objecting to?

Lackey

Pick up forms in council office
If you have two refusals from a bank you might get mortgage from council
Council will send out estate agent to value house
Depending on wages you get to buy house at 40%-60% discount
So if house worth 100k with 60% discount you pay 40k for house
Strict Rules attached regarding resale

Lackey

quadrifoglio verde wrote: »

This is council built stock at a time when councils have negative stock. There is no reason at all why that stock should be sold to someone below the cost of replacing it for a similar sized house in the same area
The tax payer should not be held liable for a person wanting to own the roof over their head

If people are working then their rent will not be as cheap as you think
Most will pay less on their mortgage than rent
A lot will pay back the full cost (or close to it) of the house (that the council paid for it) between previous years rent and then buying the house
People are trying to better themselves you either want them to be a burden on the taxpayer or you don't

van_beano

Lackey wrote: »

If people are working then their rent will not be as cheap as you think
Most will pay less on their mortgage than rent
A lot will pay back the full cost (or close to it) of the house (that the council paid for it) between previous years rent and then buying the house
People are trying to better themselves you either want them to be a burden on the taxpayer or you don't

I know this path of conversation is way off topic so I'll keep it short. I think by getting a 40%-60% discount on buying the house is what rubs people up the wrong way as people in private estates don't get the same luxury.

wardy2

Receive letter and an booklet today in the post saying who's are eligible for the scheme

Also application forms are now on their web site and also an €150 fee goes with it

twowheelsonly

van_beano wrote: »

I know this path of conversation is way off topic so I'll keep it short. I think by getting a 40%-60% discount on buying the house is what rubs people up the wrong way as people in private estates don't get the same luxury.

Many people in these houses will also have well over that 40-60% discount paid off in rent they've been paying over the years.
Some won't obviously but that's why the discount is graded.

If, for instance, a house was built in the 70s', 80s' or early 90s' the build price of the house is well paid for by now and the councils stand to make another ball of money from it before they hand it over.

ballyharpat

Many people in these houses will also have well over that 40-60% discount paid off in rent they've been paying over the years.
Some won't obviously but that's why the discount is graded.

You're missing the point, they did not rent to buy, there are many people buying houses and they have been renting for years and the houses they buy may have been rented, they don't get a discount just because the house was rented.

If, for instance, a house was built in the 70s', 80s' or early 90s' the build price of the house is well paid for by now and the councils stand to make another ball of money from it before they hand it over.
Does this discount of houses built in those times apply to other houses for sale? no it doesn't, therefore, the houses are being bought at a discount, the Council(taxpayer) are getting 40/60% less than value of the house

twowheelsonly

ballyharpat wrote: »

Many people in these houses will also have well over that 40-60% discount paid off in rent they've been paying over the years.
Some won't obviously but that's why the discount is graded.

You're missing the point, they did not rent to buy, there are many people buying houses and they have been renting for years and the houses they buy may have been rented, they don't get a discount just because the house was rented.

If, for instance, a house was built in the 70s', 80s' or early 90s' the build price of the house is well paid for by now and the councils stand to make another ball of money from it before they hand it over.
Does this discount of houses built in those times apply to other houses for sale? no it doesn't, therefore, the houses are being bought at a discount, the Council(taxpayer) are getting 40/60% less than value of the house

But I'd imagine that there's far fewer of those for sale than what I'd quoted. Certainly in my area (Cork) there's been very little building of council houses since the mid-90s' compared to what was built before that.

Lots of properties are exempt from sale as well such as council properties within private estates and specialised housing for the elderly amongst others.

FULL DISCLOSURE:

In my own house since 1988 so 28 years - was a new build at the time.
Have tried and failed to buy it twice and they're arguing again this time (but for a different reason)
Since October 1999 I've paid them €166,400 in rent plus whatever I paid up to that so probably in around €200k or a little more in total.
Ballpark house value of probably €130/140 - pure guess - so they'd probably be looking for €80k or so.
That's a lot of money, and a good profit, for a house that was more than likely less than €30k to build.
I'm a good tenant that doesn't call them out to fix my door or lightbulbs, I keep the house well and the garden even better !! Basically, pretty much as if I owned it myself.

Two of my close neighbours, in a row of only 6 houses, are in the houses the same time and are now at the upper end of the rent scale as well and have also come up against problems with trying to buy for different reasons to my own.

It's easy to say that we should have/could have bought privately before now but by the time I started to make some half decent money the rent shot up, along with general house prices, and paying high rent and saving a ridiculous deposit at the same time isn't easy when you have 4 kids.

MarkAnthony

Excellent post twowheels. While I'm not 100% convinced on some of the figures (building cost) there you make a great point and it's refined my opinion somewhat.

van_beano

Good post twowheels. My thoughts on it though are: Should the council not try and hold on to their stock instead of selling it on? The house you mentioned is fully paid for at this point and they're making a profit on it. Once a tenant passes on, for whatever reason, this profit making house goes back into the council stock. The council may need to make certain upgrades to it (insulation, minor repairs etc) and then they'd be able to move a new family into it and continue to make profit which will go towards the council purchasing more houses. The turnaround on a council house could be 40, 50, 60 years before it passes to a new tenant.

Would it not be beneficial for the council to keep a house that's costing them nothing within their stock as opposed to offloading it for a quick couple of quid?

MarkAnthony

van_beano wrote: »

Good post twowheels. My thoughts on it though are: Should the council not try and hold on to their stock instead of selling it on? The house you mentioned is fully paid for at this point and they're making a profit on it. Once a tenant passes on, for whatever reason, this profit making house goes back into the council stock. The council may need to make certain upgrades to it (insulation, minor repairs etc) and then they'd be able to move a new family into it and continue to make profit which will go towards the council purchasing more houses. The turnaround on a council house could be 40, 50, 60 years before it passes to a new tenant.

Would it not be beneficial for the council to keep a house that's costing them nothing within their stock as opposed to offloading it for a quick couple of quid?

If they're building - which I grant you they're not - it makes sense to sell the house and build new ones. It allows people to stay in the home even if it no longer suits their needs with no harm done.

It also allows areas to convert to ownership rather than large proportions of people renting. Furthermore it allows new build with upgrades to safety, insulation etc. and reduced maintenance.

Dani1921

Do you apply for this scheme first before you apply for the mortgage? Wanting to buy my council home but I can't apply for a mortgage without knowing the price of it. Bit confused here as part of the scheme they send out a surveyor and they value your house so I'm sure u hold off to see if you even get accepted for this scheme first before applying right?

kerosene

You have to contact your council first. It seems to be a slow process.

Dani1921

I did they gave me the forms and everything, but didn't really explain much, maybe I'll give them a ring today and find out

kerosene

I think there are six stages, it sounds like you are still at the first stage. It would probably be no harm to call them and see how your application is progressing.

foxy06

It's an extremely slow process. And lucky if you get an answer from them. I would say they have a backlog of applications at the moment

Dani1921

Thanks guys for your reply, so I got my answer as I emailed them and they replied instantly which was great. So I applied to purchase the house first before you apply for the mortgage, which I thought was obvious anyway. I have another question when applying for the local authority mortgage it says in the scheme you Dont need a deposit but when applying for a mortgage from the it says you need a 3% deposit, a deposit is no problem for us but would like to know. Would appreciate the information if anyone has any. I have emailed them again about this so waiting on a reply as it is a bank holiday weekend!
Thank you

wardy2

Anyone had their appointment with the Council yet ?
Having mine tomorrow morning.

Pacos207

Has anybody applied for the council house purchase loan of recent? How long do they take to respond to your application? Please help anybody out there with any experience about this.

phobia2011

Any updates on this?

kerosene

I dont know of anyone who has purchased their home through this scheme yet. The furtherest I have heard is someone waiting on the valuation of their home to be communicated to them.
Their does seem to be a lot of red tape and conditions attached to purchasing the property that the banks are reluctant to offer mortgages. Unfortunately I am nowhere near that stage and I am not aware of the exact conditions attatched.

phobia2011

When a valuation takes place, does the interior of the house need to be inspected? Im wanting to do lots of decorating and maintenance, I would be afraid I would increase the value if I do.

kerosene

Its an independant valuation, so I would assume an estate agent would inspect the propertys interior and exterior similar to any other valuation.

donutheadhomer

Has anyone got any further with this yet?

wardy2

donutheadhomer wrote: »

Has anyone got any further with this yet?

At the last stage now the house has been valued and an price has been offered to me

kerosene

Nothing yet.

Chesty08

wardy2 wrote: »

At the last stage now the house has been valued and an price has been offered to me

How long was this process in total?

Also, do you know if you upgrade the house (I.e build an extension or convert an attic) over the years will this be counted towards the new market value if there is a resale!?

kkalm

wardy2 wrote: »

At the last stage now the house has been valued and an price has been offered to me

Hi, Can you advise, were you happy with the valuation?

We are awaiting ours and we are fearful that it will be higher than expected.

Emirates1

Applied under this scheme in Kerry April 2016.Still havent moved to valuation stage.Apparently KCC is finalising a panel of 'Independent' valuers.Anyway,we had an electrical problem over the weekend and contacted KCC today to send out electrician as tenants do when repairs etc needed.We were informed that as we had applied under Tenant Purchase Scheme KCC were no longer responsible to carry out stated repairs.This despite they still being owners of property and me not having received valuation or not having signed anything stating that I will purchase.I am still paying full rent to them though.Bit confused to tell you the truth.

foxy06

Just got confirmation from permanent TSB that they are not offering mortgages for the tenant purchase scheme because of the discount charge on the property. Being trying to purchase our house for years and it's hurdle after hurdle.

Emirates1

I have paid over 30000 in rent.If house valued at 100000 and I get let's say 40% discount.Still no sign of valuation being made so I will probably have paid over 100000 at least if I decide to go ahead.As an aside person in KCC Housing Dept told me last week they believed Tenant Purchase Scheme totally loaded against tenant.

foxy06

I understand what they mean. We are paying just over 11k per annum rent to the council and have been trying for years to get this over the line but they have made it virtually impossible. The rent I've paid doesn't bother me, I would have paid the same or more in the private market and obviously I'm paying the rent to live in the house but to announce a scheme that is basically not worth the paper it's written on <mod snip: this is not a politics forum>

They also announced a help to buy scheme that I am sure has helped a lot of people to purchase but has also pushed up the house prices dramatically over the last 3 months making it impossible for council tenants to even look down that road.