Buying ex-council house

culchie_abroad

Hello,

I'm looking to go buy to let on an ex-council house in Dublin but was informed by my solicitor that DCC would block the sale on the grounds that they would not approve the sale to an investor.

However the estate agent says that if the owner buys the freehold then the council will not be required to give their blessing.

Has anyone any experience in this?

Between my solicitor, DCC and estate agent I can't seem to get a straight answer.

surrender monkey

It's hard to say without seeing the folio for the property. If the house is being sold by the original tenant purchaser then no you will not be allowed to purchase the property to rent it out. If the house was sold on to by the original tenant purchaser to someone else who's now selling to you then you would be allowed purchase. Buying out the ground rent may not work.! This is because of the provisions set out in the 1966 housing act it's not dcc's fault!

culchie_abroad

Yes I believe that the seller was the original tenant, they definitely did not have the ground rent.

Seems surprising that DCC would still get a say even if the seller has the ground rent but will investigate the housing act.

Thanks for this!

Claw Hammer

For the first 3 sales after the council transfer a house, it is a condition that the house be sold to a person in need of housing so it can't be sold for investment purposes. this it is because it is considered that a house built by the council and leased at below market rents and sold at a substantial discount, should not be bought by an investor who will charge market rents.

D.S.L

All correct answers. Having just been through this. You have to apply to DCC for permission to purchase the property. It can take up to 6 weeks. You need to be someone in need of housing. Unlikely that you will be able to purchase the ground rent until you own the property, as was our case. We needed to be the registered owner of the property on folio. It then goes to the DCC committee and approved and then you can purchase the ground rent.

During the purchasing stage your solicitor will ask you to sign a form and submit a conditional consent to transfer to DCC. Admin fee of 100 euro.

BUT, we were told that this only applies if it is the first sale of the property - we purchased from a family who purchased from DCC. It could be 3 sales, but as far as I am aware, we were told that should we choose to sell, the next buyer will not be required to seek permission.

surrender monkey

D.S.L you are correct. When you go to sell the property there will be no restrictions. It is only the first sale that is affected. Certain covenants and conditions can remain in place if they were in the original transfer order. For example the council often reserved a right of access to the property to repair any drains for the benefit of adjoining council properties but the homeowner would benefit themselves from these works.

asharkman

culchie_abroad wrote: »

Hello,

I'm looking to go buy to let on an ex-council house in Dublin but was informed by my solicitor that DCC would block the sale on the grounds that they would not approve the sale to an investor.

However the estate agent says that if the owner buys the freehold then the council will not be required to give their blessing.

Has anyone any experience in this?

Between my solicitor, DCC and estate agent I can't seem to get a straight answer.

Hey, just wondering how you got on with this?

Dolbhad

When Council’s sell the house to the original tenant, they usually have a condition that council consent is needed to sell or mortgage the house for a certain period of time and the house is required to be someone’s principal private residence. It’s only if it’s leasehold now title can the ground rent be bought out to solve the issue.

But in Cork I see most of the time the land is freehold title and this is registered as a burden on title so no way around the council council until the period of time passes.