buying out council's share in a shared/affordable house

Hi all,

I bought an affordable house in 2007 in the Dublin City Council area. The market value was €275,000 at the time. I bought it for €206,000. I reckon it's now worth €175,000ish.

My salary at the time wouldn't give me a full mortgage so I went through the Shared Ownership option with me buying 60% and renting the other 40% from DCC.

I am now considering my options. I rang up the council and they said that there was €191,000 owing on the house. I have no idea where they got this figure from as I only borrowed €123,600 (60%) from them. Would they adding together the balance of that loan and their full €82,400 (40%)?

They also said that I could transfer to full mortgage on the €191,000. They have booked me in for an appointment with a valuer to come around and view the place. They also said that the clawback will be gone if I transfer to the full 100% and the place will be fully mine and I am free to sell or rent it as a result. Is this true?

Also, I would like to know will they take into consideration a new market value on their 40% of the house? It's not worth €82,400 now. It probably more like €70000 given an approximate market value of €175,000.

Has anyone been through the full mortgage buyout with DCC? What was the expierience like? Any tips?

dingoxh said:

I am now considering my options. I rang up the council and they said that there was €191,000 owing on the house. I have no idea where they got this figure from as I only borrowed €123,600 (60%) from them. Would they adding together the balance of that loan and their full €82,400 (40%)?

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I would assume so, under the terms of your SO contract you have to buy out their share eventually so you owe what they own, even if you haven't already borrowed it. Also there's interest.

They also said that the clawback will be gone if I transfer to the full 100% and the place will be fully mine and I am free to sell or rent it as a result. Is this true?

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That's certainly not what I was told when I did this. I was told I would have to buy out the clawback if there was one (i.e. if the value of the property is still worth more than what I paid for it) and if not, I would still be subject to the AH conditions.

The DCC AH department is absolutely notorious for giving out misinformation - I think it's because that's a low status department that people get transfered out of as soon as they show a bit of talent - so I would get anything like this in writing from them. If you get it, please post it here because I would certainly like to see it.