Can i remortgage my AH in cork?

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phat1

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Hi im wondering can i remortgage my AH in cork,i have the house 2 years,I have a straight mortgage with the council for 130000 euro need to remortgage 20000 euro to pay of loans and stuff.Would be most greatful for people's help,thanks!
 
Re: Remortgage

Hi,
I'm looking to do the same thing, i rang my local council and there's this thing called a claw back i think it goes something like this.. i bought my house for 127,000 but it was worth 150,000 so if i want to buy it off the council i have to pay the 150,00. If you look up 'afordable housing' on the net you can read up about the claw back but thats my understanding of it anyway, you should just ring your local council and ask someone there about it.
Hope thats of some help to you let me know how you get on.
 
Re: Remortgage

Hi see below from previous thread i replied to. To be able to re-mortgage you must buy the property off the council and pay the claw back.

You can buy the council out of the mortgage at any time wit a lender, but to buy them out of the claw back and actually own it privately you need to wait 1 year. Regarding buying the place etc... here is exactly what i know and what i have done.

"I got the apt for 220,000 from DCC it was worth 260,000 (thus giving me a 12% discount) - anyhow i did shared ownership, (50/50), i got my loan for 110,000 for this through the council and rented the other half from them, bear in mind the other half was more than the mortgage half, and it goes up in July of every year by whatever the rental market is at the time. Anyhow, i then had my boyfriend who wished to help me buy the place off the council in full with claw back (its very messy process) but worth it.
So back to figures, i bought the place basically wiht rental for 220,000 worth 260,000 = 12% discount. To buy them out claw back and all, i had to pay them then my original discount percentage 12% of the market value that it is at the time i want to buy it (had to get valuation) it was valued at 310,000 thus i needed to pay them back 12% of 310,000. Which was 38k, so with that 38k and the money i orginally borrowed 220,000 i had to go to a bank and look for a mortgage of those two figures. 258,000 to be able to buy them out completely and own it privately. Bear in mind one thing though, if you go shared ownership, it make take longer than a year to buy them out, reason for this is, when you do shared ownership the deeds of your apt go to the land registrary from DCC to be put half in your name and half in theres. To buy them out and go to your own bank, most sollicitors will want to have control of the deeds and take over that application, however DCC do not allow this, and the deeds need to be land registered then before your solicitor will have them passed over from DCC. It can be done, i'm proof of this, and i managed with alot of letters/tme and pushing... to get my deeds registered in 3 months, which my solicitor was then able to take control and proceed to buying out council. Reason my solicitor would not continue with buy until she had control of deeds was becuase she was unable until then to prove to the Bank that if i was unable to pay my mortgage that they could take my house/apt."
 
Re: Remortgage

Hi thanks for the reply's, corkcc rang me today and told me i can never remortgage with them or another lender,I dont understand why i'll have to look into it more,I dont want to buy them out cause it would cost me at least 80-90000 euro and i cant afford to do that,Just needed to remortgage 20000 euro to make life a bit more easier for me now,i'm living to work and pay bills,If anyboby gets more info on this for me it would be great,Thanks to all!
 
Re: Remortgage

The reason you cant re-mortgage is due to the fact you dont own your property as such. Even though you are paying the full mortgage until you buy the claw back from DCC it is still their property.
 
Re: Remortgage

phat1 said:
Hi thanks for the reply's, corkcc rang me today and told me i can never remortgage with them or another lender,I dont understand why i'll have to look into it more,I dont want to buy them out cause it would cost me at least 80-90000 euro and i cant afford to do that,Just needed to remortgage 20000 euro to make life a bit more easier for me now,i'm living to work and pay bills,If anyboby gets more info on this for me it would be great,Thanks to all!
Click to expand...

I am sorry to say Clongriffin is correct here. Getting an affordable house at a discount is great, it means you can afford to buy it in most cases. Remember you don’t own the place fully, so you will not be able to re mortgage at this point.

Other wise people would be getting an affordable place at a massive discount then using the equity to re-mortgage and cash in on the deal. Once you pay the claw back you are free to remortgage till the cows come home.
Some people think this is a problem with AH, but others think its necessary to stop profiteering. I am not pro or against this personally I am just passing on information as I understand it.
 
Re: Remortgage

Could someone clarify this for me?

If I bought an house through affordable housing and want to remortgage I need to pay the full (non-discounted) cost of the house with the clawback value going back to the local authority?
 
Re: Remortgage

Yes, under the current regime in order to remortgage one must buyout the clawback from council.

When you first bought from council the charges on property are priortiesed as folows
1. you housing loan with council
2. clawback

If you discharge your housing loan(as you would in a remortgage) the clawback charge is upgraded in priority leaving the bank in second place
1. clawback
2. new mortgage

Banks will not normally accept being a second charge -they will want first call on proceeds in event of forced sale.

This is my understanding.

I refer you previous posts by tina4 and PAC
 
Re: Remortgage

Daith said:
Could someone clarify this for me?

If I bought an house through affordable housing and want to remortgage I need to pay the full (non-discounted) cost of the house with the clawback value going back to the local authority?
Click to expand...

Basically the short of it is, if you wish to re-mortgage you must buy the property off the Council before u can do so. This means paying them the price you bought it for plus the claw back, so you would need to go to a bank and ask them for this figure before you could buy them back. you also need to be in the property minimum of a year before you can do this. You can not re-mortgage an affordable house/shared ownership until you buy it back fully. Claw back inclusive.
 
Re: Remortgage

Just to point out that the Minister of Environment has said that he will introduce legislation to remove the requirement to pay back the clawback when you remortgage, although it's anyone's guess when that will happen.
 
Re: Remortgage

I had been told this when i bought the council out last november and i asked then how long it may be, because if it was in a year or two i might hold out, but i was told it may take a number of years for this to come into affect, it may be 3 it may be 5 it may even be longer. I'm guessing as its councils that they will be dealing with it would take longer rather than sooner.
 
Brooklyn thanks for the info i'll look into this and see what the news is.Guys thanks for your replys on this matter it helps a lot its a great web site keep it up
 
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