Buying out council clawback

[Society]

Does anyone know if you pay off your mortgage in full does the clawback kick in immediatedly or should you continue to keep the loan live for the 20 year period to avoid having to pay the clawback amount?

 

[bradfield]

Lawsociety

My understanding is that the clawback applies for 20 years until

a you sell the house and pay back the clawback
b you pay off the mortgage including the clawback even if you are still living in it.

If you choose to pay back the mortgage before the 20 years they will apply the clawback. That is my understanding anyway!

B

 

[ccgirl]

Applied to SDCC last week for a valuation and redemption figure to buy out the councils share in the property. The council are due to send out a valuer to value the propertyshortly. I was just wondering what type of valuation the council are likely to put on the property ? I have researched daft , myhome etc... for simular properties and I was wondering if this is what the council are likely to value it at? Any advice would be appreciated. Thanks folks this is all new to me.

 

[ellaella]

Lawsociety

My understanding is that the clawback applies for 20 years until

a you sell the house and pay back the clawback
b you pay off the mortgage including the clawback even if you are still living in it.

If you choose to pay back the mortgage before the 20 years they will apply the clawback. That is my understanding anyway!

B

Having done a lot of research with regard to the affordable housing scheme I have never seen a mention in any literature from local authorities, affordable homes partnership or otherwise that if mortgage is redeemed, clawback will come into effect. where is this stated?