Affordable Housing Clawback

B

Bofin

Registered User
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15
Hi all,

I've had a look at the other posts and the information supplied online but I'm still confused about the clawback on affordable housing. I haven't bought one but i am leaving college this october and really want to get started on the property ladder.

I was just wondering that if I want to sell it before ten years do I have to pay back to the council the market value of the apt when I sell it (thereby the council take any profit made on the apt) or do you have to pay back the market value as to when you bought it. Just considering my options cause if its the first cause then I would think I might be better buying with someone else and taking advantage of any rise in the market???

Any advice or comments would really be helpful.

Thanks!
 
Hi,
I'm in an affordable housing estate and one here sold a year ago. They bought for 142K originally (130k mortgage). Sold for 250K and had to give the coucil 60K walking away with 60k themselves. There is a formula on the application forms for working it out but everyone I know comes up with a different figure. Seems to me you can make a profit but the council makes the same.
 
You calculate the % discount that you bought the property for (from market value) and you pay this % back to the council when you sell. I read somewhere that you also have to pay back Stamp Duty if you sell before 5 years (not sure about that though).
 
I also have an affordable house. As said by the previous poster the clawback is calculated on the basis of the discount that you receive when you purchase the house. The reason it may be different for different people depends on the market value of the house when you bought it and the amount you sell your house . You can find the formula for calculation of the percentage clawback on the various councils websites.

My clawback was calculated at the time as 30.4% so when I sell my house I will have to pay 30.4% of the selling price back to the council. At present on the basis of he house sale price of other houses in my estate this would still see me clear almost 100 000 euros after settling with the council! I bought my house 4 year ago, this will aslo effect the amount of money you make as it will depend on what the remaining balance is on your mortgage account. It is also true that if you sell the house before 5 year you willl have to pay back some stamp duty!

Hope this helps!

D
 
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