Sorry my bad I apologise. I should have read the post twice. I now see that they are selling below the original purchase price so you are correct. No money owed to the council whatsover.
All proceeds above the original purchase price and to the market value would go back to the council. This is not technically clawback as it does not apply the clawback %. This offical clawback only applies to sales above the original market value.
Example of How the Clawback Works
John and Mary bought an affordable home. The market value of this property was €280,000, and they bought it at an affordable price of €196,000. So, the market value discount to John and Mary, which is known as the clawback, was 30%.
Scenario 1 – if they sell the home for less than the affordable price If the market value of the home decreases below the original affordable price of the home, and the home is sold at this lower price, then no clawback is payable to the local authority.
Scenario 2: if they sell after 20 years If John and Mary sold their affordable home after 20 years, they would not have to pay any clawback to the local authority as the clawback charge is discharged after 20 years. However, they would have to repay any money owed to the mortgage lender to clear their mortgage.
Scenario 3 - If the Market Value of the Affordable Home Decreases If John and Mary sell their home and the market value has decreased from €280,000 to €210,000, then the clawback would be reduced so that it does not reduce the proceeds of sale below the price they paid. So they have to pay back €14,000 to the local authority when they sell in addition to any money owing on their mortgage.
Scenario 4 – if the market value of the affordable home increases:
If John and Mary sell their home for a higher amount than the original market value for example, €330,000 after five years, the clawback would be €99,000 (30% of €330,000). They would have to pay back €99,000 to the local authority. They would also have to repay any money owed to the mortgage lender to clear their mortgage.
The above covers the main scenarios.
For further information please contact the Loan Accounts Section directly.
Your situation is scenario 1.
You are actually at a sweet spot to be honest as once you go above the original purchase price but below the original market value the additional money is payable to the council. That was the scenario I mistakenly thought that you were in.
Hope that helps.
Thanks BobbyG for picking that up.