Hi clongriffin
I rang DCC recently and asked about shared ownership. Is that the same as 50/50.
The impression i got was that if you went with shared ownership and bought an affordable for 250k you would rent half from DCC and have a mortgage for 125k then after a year you could go to a normal lender like PTSB and buy DCC out of there half for the original price.
But the guy i spoke to told me when you buy out DCC after a year you buy the apt at curent market value. so if the price of apt went up by 200k thats what extra you would be paying.
so in that case if original price was 250k and prices went up by 200k you would need approval for 450k.
It sounds a bit extreme to me if i got my info right.
betty
You can buy the council out of the mortgage at any time wit a lender, but to buy them out of the claw back and actually own it privately you need to wait 1 year. Regarding buying the place etc... here is exactly what i know and what i have done.
I got the apt for 220,000 from DCC it was worth 260,000 (thus giving me a 12% discount) - anyhow i did shared ownership, (50/50), i got my loan for 110,000 for this through the council and rented the other half from them, bear in mind the other half was more than the mortgage half, and it goes up in July of every year by whatever the rental market is at the time. Anyhow, i then had my boyfriend who wished to help me buy the place off the council in full with claw back (its very messy process) but worth it.
So back to figures, i bought the place basically wiht rental for 220,000 worth 260,000 = 12% discount. To buy them out claw back and all, i had to pay them then my original discount percentage 12% of the market value that it is at the time i want to buy it (had to get valuation) it was valued at 310,000 thus i needed to pay them back 12% of 310,000. Which was 38k, so with that 38k and the money i orginally borrowed 220,000 i had to go to a bank and look for a mortgage of those two figures. 258,000 to be able to buy them out completely and own it privately. Bear in mind one thing though, if you go shared ownership, it make take longer than a year to buy them out, reason for this is, when you do shared ownership the deeds of your apt go to the land registrary from DCC to be put half in your name and half in theres. To buy them out and go to your own bank, most sollicitors will want to have control of the deeds and take over that application, however DCC do not allow this, and the deeds need to be land registered then before your solicitor will have them passed over from DCC. It can be done, i'm proof of this, and i managed with alot of letters/tme and pushing... to get my deeds registered in 3 months, which my solicitor was then able to take control and proceed to buying out council. Reason my solicitor would not continue with buy until she had control of deeds was becuase she was unable until then to prove to the Bank that if i was unable to pay my mortgage that they could take my house/apt.
I hope this is of some help.