Buying out council - Affordable Housing

Ok so I got my Place valued and then the council sent me back this letter:

I apologise for taking so long in getting back to you on this matter but I had to get clarification before I gave you the information to ensure you were getting the correct information.

You can re mortgage your property with another bank. If you re mortgage you will not have to pay a clawback, the clawback will stay as a clause on the folio. However, if you sell your property now or further down the line the clawback will then need to be paid.

I hope this is of some help to you. I again apologise for taking so long in replying to your query.

Looks like Emma 1980 got the same letter.

So as my property is valued at less than the amount I paid for it (With the AH discount), my clawback should be zero. Is there any way to pay back the clawback without remortgaging/selling?
 
Hi Affordable27,

I got the same response as yourself, see below.
*************************************************************
Hi

Re mortgaging your affordable property is a simple enough procedure. Once you have secured finance from a mortgage provider you will need to get redemption figures from KCB (this is usually done through your solicitor).
When looking for a new mortgage provider I would suggest you tell them straight away that you have an affordable property as some banks may not loan to this type of property.

The clawback is not payable when you re mortgage, it just stays as a clause on the folio. However, if you decide to sell your property at any stage the clawback is then payable.

I hope this is of help to you.

Kind regards

Rebecca

***************************************************************

Ok so DCC are telling us that as AH clients we can not pay the claw back amount off, whatever the figure may be. However, I don't think that they can get away with having one rule for AH clients who received their mortgages from banks and have another rule for AH clients who organised their mortgages through DCC in the form of the shared ownership scheme. People who have availed of the Shared Ownership scheme, can remortgage with a bank and are allowed to pay off their clawback - this seems quite unfair to the rest of us, as they essentially must adhere to the same AH rules as ourselves but DCC don't recognise this and are allowing S.O clients to pay off the clawback on their Affordable housing properties.

I think at this stage it is best for each of us to seek legal advice and request that a solicitor with experience in this area, review the legislation governing this scheme, to see if what DCC are doing is legal or not?
 
I agree Roe - Does anyone know of a solicitor that specialises in this area - or will we go to our own solicitor?


Roe said:
Hi Affordable27,

I got the same response as yourself, see below.
*************************************************************
Hi

Re mortgaging your affordable property is a simple enough procedure. Once you have secured finance from a mortgage provider you will need to get redemption figures from KCB (this is usually done through your solicitor).
When looking for a new mortgage provider I would suggest you tell them straight away that you have an affordable property as some banks may not loan to this type of property.

The clawback is not payable when you re mortgage, it just stays as a clause on the folio. However, if you decide to sell your property at any stage the clawback is then payable.

I hope this is of help to you.

Kind regards

Rebecca

***************************************************************

Ok so DCC are telling us that as AH clients we can not pay the claw back amount off, whatever the figure may be. However, I don't think that they can get away with having one rule for AH clients who received their mortgages from banks and have another rule for AH clients who organised their mortgages through DCC in the form of the shared ownership scheme. People who have availed of the Shared Ownership scheme, can remortgage with a bank and are allowed to pay off their clawback - this seems quite unfair to the rest of us, as they essentially must adhere to the same AH rules as ourselves but DCC don't recognise this and are allowing S.O clients to pay off the clawback on their Affordable housing properties.

I think at this stage it is best for each of us to seek legal advice and request that a solicitor with experience in this area, review the legislation governing this scheme, to see if what DCC are doing is legal or not?
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