apartment under the shared-ownership scheme & I cannot afford to buy out 100% of apt.

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SUNNYBANK

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I have an apartment under the shared-ownership scheme and I cannot afford to buy out 100% of the apt.
The apt was valued at 230k 4years ago but is now only worth about half that. Does anybody know if the DCC will waive the loss if I was able to sell? or would I still owe the council the balances of the loan? as it was not clear from earler postings whether the council will accept the loss.
Can anybody helf on this please.
Thanks very much
 
Re: apartment under the shared-ownership scheme & I cannot afford to buy out 100% of

If you sell you will still be required to pay DCC whatever the current value is of their share of the property. They waive the clawback if the property sells for less than what you paid for it but they don't waive the amount of it that they actually own.
 
Re: apartment under the shared-ownership scheme & I cannot afford to buy out 100% of

Thanks very much for that reply Brooklyn. So just to clarify, the DCC's loan share would originally have been 115k approx- so if I was able to sell it for say 120k, would I break even or do DCC demand the equitable rent portion also to be repaid to them which would result in a huge loss to me?
I would hope to hold onto it for a few years in hopes that the value of property in Dublin will eventually rise but its just a bit frustrating that one is paying 1200pm to DCC for something that I might never own. No other bank would grant me a full mortgage unfortunately.
 
Re: apartment under the shared-ownership scheme & I cannot afford to buy out 100% of

Yes, if you sell you have to repay them the amount of the property that they own (and you rent) as well as the amount that they are the mortgagee on. So you'll have to hold on to it for a while! I'm in the same boat...

Have you spoken to them about going to 99% mortgage / 1% rent?
 
Re: apartment under the shared-ownership scheme & I cannot afford to buy out 100% of

Thanks Brooklyn, yes I got talking to them yesterday and they said they will be sending out letters to everyone soon encouraging them to buy the 99%. They said the tax deduction at source on the 50% will start from scratch- i.e. 7 yrs tax releif on 50%. I had been getting a small rent supplement because my income was <28,000 last year so I will lose that- but I dont qualify for it after June'10 anyway so I might as well try buying out the 99%
 
Re: apartment under the shared-ownership scheme & I cannot afford to buy out 100% of

Hi,
Have you figured out how much more monthly repayments would be with 99%?
 
Re: apartment under the shared-ownership scheme & I cannot afford to buy out 100% of

No, I am waiting for them to get back to me on it
 
Re: apartment under the shared-ownership scheme & I cannot afford to buy out 100% of

adm2006 said:
Hi,
Have you figured out how much more monthly repayments would be with 99%?
Click to expand...

My current payments are around €1050 and they estimated it would go up by about €95. Of course that will change once interest rates go back up. Still I think it's worth it if you can afford it!
 
SUNNYBANK said:
Thanks Brooklyn, yes I got talking to them yesterday and they said they will be sending out letters to everyone soon encouraging them to buy the 99%. They said the tax deduction at source on the 50% will start from scratch- i.e. 7 yrs tax releif on 50%. I had been getting a small rent supplement because my income was <28,000 last year so I will lose that- but I dont qualify for it after June'10 anyway so I might as well try buying out the 99%
Click to expand...


Hi there,

Was on to DCC today to get a form to apply for 99% mortgage 1% rent. The lady said that the council was no longer doing this and that she would send me out a form to apply for remortgaging. I can't afford to remortgage and pay any clawback.
 
Shared ownership

Was on to DCC today to get a form to apply for 99% mortgage 1% rent. The lady
said that the council was no longer doing this and that she would send me out
a form to apply for remortgaging. I can't afford to remortgage and pay any
clawback.


I wonder was she talking about Affordable Housing? as I received an
application form yesterday to apply for the 100%
 
If you lose your job and have to go on jsb, are you just entitled to help towards the rental portion i.e. rent allowance from the Community Welfare Officer- (which would be means-tested)??
Will the local authority take the house from you if cannot afford to pay the mortgage 50% portion even though they only actually own 50% of it?
Thanks in advance
 
You're only entitled to rent allowance if you're in private rented accommodation.

Theoretically you could lose the house if you can't afford to pay your mortgage + rent. But the councils are supposed to try to work out an arrangement with you first.
 
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