buying out County Council - Shared Ownership

I know that similar problem is already discussed on this forum, however most of the time it is about buying out council when the property was purchased through Affordable Housing Scheme. In this post I would like to hear any advice on buying out council when property was bought through the Shared Ownership Scheme.

We bought a house three years ago through the shared ownership scheme with Cork County Council, the original price of the property was 200 000 euro, (own share 40% and 60% councils), the property was bought form the open market and the price was the market price with no discount. Now, our financial situation has improved and bank has approved us for the mortgage up to 250 000. We have asked the council for the redemption figure, and this was posted to us last week - 190 000, however, the current market value of the property (according to the independent valuer) is only 160 000.
we were told by person from the bank that although we can apply for 250 000 mortgage we cannot get 190 000 to buy out council, as the real value of the property is much lower.

Has anyone experience in similar case?

Thanks for any help
Regards
Skier

Hi Skier

Im in the process of buying out the council. I had to get a redemption figure and it cost me 67euros....!! they never told me this, check the redemption statement and you'll see this figure nested in there. I called them and they told me it was a once off. I then asked if it cost for an evaluation, they said no. So once I have the redemption figure and the clawback based on the current value of the apartment I can then transfer the loan to a private financial institution and fix my rate and lease it out which I'm not allowed to do. BTW, you got a loan of 190k, that has nothing to do with the market value of the apartment.... think about it. If the house is worth 160 but you borrowed 190 then you still owe them 190. The only thing is that if the house is valued at less that (negative equity) then they clawback no longer applies as you wont be making anything on the sale. But you still owe them their money!

Thanks Orionstar21,

are you talking about property bought through the shared ownership or affordabe housing scheme?