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Buying a home after separation, not first time buyer

  • 28-09-2021 3:32pm
    #1
    Registered Users Posts: 56 ✭✭ Delirah


    Hi all. My ex and I are selling our house, more than likely. I have a permanent job working 4 days per week and am the primary caregiver for the kids. My wage is not very high so I would be entitled to a small mortgage if any. No where near enough to buy a property.

    I'm wondering about the rebuilding Ireland scheme. Would I qualify as I would be purchasing alone for the first time. Or will the fact I've been a joint home owner go against me. I can't find the specific info online and their phone lines aren't in use.

    Are there any other options?


    Thanks



Comments

  • Registered Users Posts: 612 ✭✭✭ houseyhouse


    My understanding is that if one of you moves out and gives up your interest in the family home while the other stays there, the one who leaves is a first time buyer again. If you are selling the house, I don’t think that would apply. Perhaps you could agree with your ex that they will stay in the home until you’ve bought as a first time buyer? This would mean you wouldn’t be entitled to any equity built up in the house though. I’d advise calling Citizens Info and/or speaking to a solicitor.



  • Registered Users Posts: 405 ✭✭ Emma2019


    As far as I've seen, once you've bought a house, your FTB status is gone.

    Its definitely gone for the central bank 10% deposit rules, you'll need a 20% deposit for the next purchase.

    It's also definitely gone for the Help To Buy scheme.

    You'd have to contact RI themselves (probably through your CoCo?) to see if they treat things differently.



  • Registered Users Posts: 612 ✭✭✭ houseyhouse


    If you google ‘first time buyer separation’ or ‘first time buyer divorce’ you’ll get lots of links supporting my point above. In very specific circumstances you can be treated as an ftb after separation/divorce so long as your ex has the house and you renounce your interest in it. For example, see the last paragraph of this doc this from the law society: https://www.lawsociety.ie/globalassets/documents/practice-notes/ftb.pdf

    Re Rebuilding Ireland specifically, I found this question to the Minister in the Dail clarifying that the same rules apply there: https://www.oireachtas.ie/en/debates/question/2018-03-20/1044/



  • Registered Users Posts: 247 ✭✭ anamcheasta


    What if, in the event of separation/divorce, one of the people wants to buy a new place and they never benefited from any first-time buyer grant on the family home initially? (because their wife had a prior home, which meant that their family home could not be bought under first-time buyer conditions)


    Also, and very importantly, while the 2021 'Housing for All' legislation is now treating separated/divorced people as first-time buyers -"A ‘Fresh Start’ principle for applications to State affordable housing and loan schemes. This means that people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, will be eligible to apply." (https://www.gov.ie/en/publication/ef5ec-housing-for-all-a-new-housing-plan-for-ireland/), are any of the mortgage lenders following this and treating separated/divorced people as first-time buyers?



  • Registered Users Posts: 247 ✭✭ anamcheasta


    Also, from The Irish Times on 16 December 2021, 'Central Bank to consider ‘step break’ from mortgage rules'

    (https://www.irishtimes.com/business/financial-services/central-bank-to-consider-step-break-from-mortgage-rules-1.4757227):



    "It said many participants had highlighted that the current 3.5 LTI limit posed too big a challenge for “those attempting to purchase a home in urban areas, single people, lone parents, average income earners and those who are separated or divorced with a family home and cannot access the mortgage market as first time buyers (FTBs).” One of the suggestions put forward was the introduction of a “step break”so that those earning up to €60,000 would be able to avail of a 4.5 LTI limit, it said, noting that this could assist lower income households in rural locations."



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  • Registered Users Posts: 247 ✭✭ anamcheasta


    Interesting that if you're the "primary caregiver" that you're selling the house. Why, do you mind my asking, have you decided that rather than to stay in the family home?


    Just for the record now, in December 2021, the 'Rebuilding Ireland' scheme is no more. Housing for All is the name of the new scheme, and that is what you need to start searching for. Here's the relevant piece of legislation, from September 2021, updated 11 days ago on 15 December 2021:

    • https://www.gov.ie/en/publication/ef5ec-housing-for-all-a-new-housing-plan-for-ireland/
    • You need to check under the "Fresh Start" principle under this 2021 legislation: "For people starting again "A ‘Fresh Start’ principle for applications to State affordable housing and loan schemes. This means that people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, will be eligible to apply."

    From The Journal (September 2021):

    "The plan also seeks to address the precarious situations divorced people find themselves in in terms of housing.

    "A ‘fresh start’ principle will apply to applications to State-run affordable housing and loan schemes. This means that people who are divorced/separated and no longer have a financial interest in the family home, or who have undergone insolvency proceedings, will be eligible to apply for State schemes.Two new affordable purchase schemes are to be introduced – one will involve local authorities delivering, or facilitating the delivery of, new homes in areas where affordability challenges have been identified. The second, which will be nationally available, will see the State partnering with the banking sector to establish a new affordable purchase shared-equity First Home scheme. [https://www.thejournal.ie/housing-plan-single-people-5538441-Sep2021/]



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