Contract under AHP Scheme

I bought a house at paddocks Adamstown under AHP scheme and signed the contract in September. When i signed the contract according to SDCC the market value was 395,000 and the purchase price was 290,000 with clawback percentage of 26.58%.I got a loan approval from my bank for 255,000.Now this week i got a renewal of the loan approval and the bank came bank and advised that the house value is 300,000 and they will only give me 240,000.This was shocking news for me. I have already paid 10,000 deposit.I can't afford the balance of 50,000. Can some body help me to get out of this?What options i have? This afordable housing is not afordable any more.Can i ask the counsil to renogiate the price? Can i ask the builder to do some thing? can i back out of the contract as i don't have money to buy the house? any suggestions will be appreciated! Thanks janubaba

Talk to your solicitor and they will advise you from there.

janubaba said:

I bought a house at paddocks Adamstown under AHP scheme and signed the contract in September. When i signed the contract according to SDCC the market value was 395,000 and the purchase price was 290,000 with clawback percentage of 26.58%.I got a loan approval from my bank for 255,000.

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Hey there I was offered a 3 bed (and 2 bed) by SDCC recently on the AH scheme. The 2 bed was 242k and the 3 bed ranged from 260ish-270ish (can't remember exact figure as I wasn't interested in 3 bed). Is yours AHI scheme instead? If they are same properties.. then why different prices???? Wonder if you could approach SDCC and ask for the cheaper one? Might solve your problem

Hi micro

My house is a 3 bed semi detached (969 sq ft) in phase 2. It is under AHP scheme. i have to go back to the council about this!

Hi Janubaba,

I'm in similar boat but with DCC. DCC valued at 340k, mortgage valuation a long way short at 290k. As banks are only lending 80% LTV I have to come up with the difference to what I can get from them versus the asking price. I know DCC will consider reducing the price.....not sure about SDCC.....but you'll probably have to fight tooth and nail!

janubaba said:

Hi micro

My house is a 3 bed semi detached (969 sq ft) in phase 2. It is under AHP scheme. i have to go back to the council about this!

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hey
I can't remember sq ft of the houses. The 2 beds were terraced and I think the 3 beds were terraced townhousess- this may be where the difference in price is arising.. semi d's always slightly more expensive!