clawback to council

S

sparkle82

Registered User
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Hi all,

I bought my affordable house for 156,000. If I sell for the same amount will I owe the council any money?? BTW I am aware that I will have to sell at whatever the house is valued at but I may have to drop the price in order to sell.
 
has anyone tried to negotiate the valuation the DCC give you downwards in line with a local estate agent?
 
The clawback decreases over time.

I am open to correction but believe the % is based on what you saved when you originally bought the property from them.

I bought land from the council for my home and paid X for the land, when it was worth Y. If I sell then the difference between Y and X is their clawback unless the agreed time period has elapsed.
 
ACA said:
The clawback decreases over time.

I am open to correction but believe the % is based on what you saved when you originally bought the property from them.

I bought land from the council for my home and paid X for the land, when it was worth Y. If I sell then the difference between Y and X is their clawback unless the agreed time period has elapsed.
Click to expand...

If the difference between Y and X is their clawback, what about the rest of the money you put in towards the home e.g., deposit, improvement, etc.
 
I don't know 4sure - the situation is slightly different as I only bought land from them not property. I assume that you paid X but the house was worth Y at the time and the difference is this figure that the council would look for in clawback. Your solicitor should be able to give you clarification.

The clawback clause is put into place to stop someone getting a cheap deal on land or property from the council and then selling for a profit shortly thereafter.
 
You can call them up and tell them to explain you. I phoned them once and city council told me that if I do not make any benefits I do not have to pay clawback if you sell your property at the price you bought it or bellow you do not have to give anything to city council, if you sell it
between the money that you paid and the market value that the house had when you bought it (the market value that they told you it was) then you have to pay the difference to them you will not lose but you will not earn either.
If you sell it above the market price that was when you bought it then the claw back is applicable because of course you are making a benefit.

That is what I understood and makes more sense to me. Also I spoke with other people who bought affordable and they confirmed me this.
 
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