Can you or can you not rent out an affordable house?

Well good news is, I just got another offer which I've accepted but I'm very sceptical as you probably imagine. AnnR, at which point did these puchasers pull out from buying your property? Do you know the reason?
 
I just got another offer which I've accepted but I'm very sceptical as you probably imagine
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Hi there, Many congrats, most of the panic is over.
Some advice, until things are signed sealed and delivered - only then you can relax....
 
Didn't relaise you could rent out ROOM only can you please give me more information on this
 
Can anyone advise me on rent out a ROOM only in an affordable house... as I did not realise this was acceptable
 
ally34 said:
Can anyone advise me on rent out a ROOM only in an affordable house... as I did not realise this was acceptable
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I believe it is; what is not allowable, I think, is to rely on the rental income in calculating the maximum mortgage amount.
 
Vanilla said:
Don't think so. The norm is that on selling both the purchaser and the seller have to obtain council consent- the seller covenanting not to be a burden on the council for housing in the future and the purchaser covenanting that they are in need of housing, don't own another home, are going to use this as their ppr etc. This new purchaser can then usually sell on without consent of the council though.
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This only applies to Social Housing, not affordable. (in other words, to council houses where you pay a small amount of rent and eventually buy it out from the council)
 
Thanks for clearing that up Johnjay, thought it was strange as the purchaser will be paying the full market value and therefore the property will have nothing to do with the council anymore once they are paid what they are owed from me.
 
Actually, as I said before, there is a covenant in the title to the affordable houses I have dealt with that the property cannot be alienated ( inter alia sold) without the consent of the local authority for a period of 20 years from the date of vesting of the house. So the local authority can seek whatever evidence it likes in relation to the new purchaser before giving consent.

I don't find this strange. This is a house made available to you as an affordable house. Presumably the idea was that if not for this scheme you could not have bought a similar house. Therefore you bought it with those conditions attached- which should have been explained to you fully at the time.

Perhaps to save time you should contact the housing department of the local council and ask them just what they require before giving consent to the sale, since the sale will be conditional on their consent being given. Then presumably if they do require certain qualifications in a purchaser you will be in a position to find out whether your purchaser qualifies without wasting too much time and legal costs in issuing contracts to someone who cannot qualify. Also you can send in your own undertakings to the council not to be a burden for rehousing in the future so that the consent can issue without delay and therefore not hold up your sale.
 
Andy_and_lou said:
Does anybody know? I've tried ringing the council today and can't get onto anybody (nothing new) I've ask my Solicitor who said he really doesn't know the answer and will have to look into it. Why is it such a grey area? Nobody seems to know the answer....I've tried look up the internet etc. but can't find anything.

Can anybody shed any light on the situation?
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I know that on the list of dwellings on offer, from the council in May, there were a number of units in certain areas that HAVE to be owner occupied and if not then the owner must sell it. So does that mean that the other dwellings can be rented out further down the line if there is a change in situation? What if someone wants to go off travelling for a year or so? does this mean that they have to sell their dwelling because of this? I doubt it! You will have to pay tax on the rental income that you receive for renting out your house like any other landlord/lady. The clawback only comes into it when you are selling the property.
 
My Solicitor told me I didn't need consent from the council to sell. He has the contracts/Title Deeds etc, he is very thorough and never mentioned anything to me about the purchaser having to be a first-time buyer or owner occupier, which I would think to be vital information if it was an issue. Also I don't think anyone would be willing to buy a property at the full market value if there was a condition like that on it, it doesn't make sense. It does make sense however for the condition to be there for me, the person who bought the house at a discounted price under the affordable housing scheme but not for the person I'll be selling too. Saying that I'm going to double check with my Solicitor.
 
As I said before, once a new purchaser buys it, that condition will no longer apply.

Just ring the housing department.
 
Another update, rang my solicitor and he told me that the above does not apply (thank god) he said it may apply to other schemes the council have but not to this one, as long as the clawback is paid back in full, the council have no further involvement in the property.
 
Vanilla said:
Don't think so. The norm is that on selling both the purchaser and the seller have to obtain council consent- the seller covenanting not to be a burden on the council for housing in the future and the purchaser covenanting that they are in need of housing, don't own another home, are going to use this as their ppr etc. This new purchaser can then usually sell on without consent of the council though.
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Please tell me that this isn't true... why does the purchaser need consent?
I am purchasing an ex-council house - have my details been supplied to the County Council? Why did my solcitor not tell me this?
 
I know that in the affordable housing schemes that I have dealt with for clients that these clauses are in the transfer deed and in the mortgage deed. Perhaps different councils have different covenants. Find it very strange though that the consent to sale is not applicable.

Mel- if your purchase is the second purchase, then it no longer applies- in other words the consent procedure is only applicable to the first purchase from the first tenant, thereafter it no longer applies.
 
Mel, as in my case if your solicitor did not advice you of this issue, there obviously isn't an issue there. Just ring you Solicitor to be sure but I'm sure they would have adviced on this if it was true.
 
Vanilla said:
I know that in the affordable housing schemes that I have dealt with for clients that these clauses are in the transfer deed and in the mortgage deed. Perhaps different councils have different covenants. Find it very strange though that the consent to sale is not applicable.

Mel- if your purchase is the second purchase, then it no longer applies- in other words the consent procedure is only applicable to the first purchase from the first tenant, thereafter it no longer applies.
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I would think the house predates any affordable housing schemes.
I'm not sure if it is still an actual council property or if it was bought through shared ownership scheme - I know that two previous owners were listed on the contract.
Would the same covenant apply to the sale of a council house?

(apologies for hijacking)
 
BTW My solicitor has been dealing with council on the Sale of my house and they have never mentioned 'permission for me to sell' My Solicitor just received the Clawback amount from the Council today in relation to the sale of my property, they know it's been sold and have never asked for any permission etc.
 
Andy_and_lou said:
Mel, as in my case if your solicitor did not advice you of this issue, there obviously isn't an issue there. Just ring you Solicitor to be sure but I'm sure they would have adviced on this if it was true.
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It's not clear to me whether it's a council house or under shared-ownership. My solicitor did mention that the seller needed a letter of release from the council, as he said these can be slow to produce, but not that my own details would be released. I'll check it with him, thanks!
 
just regarding the issue on renting out affordable houses. I know of a development in dublin 15 of 16 affordable houses, 1 of which has been rented out for last 4 years (since house was built) other approx. 3 years. Council are aware of it but turn a blind eye to be honest
 
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