DCC Shared Ownership -Help

[nuttybud]

Hi Im looking for some answers.
I rang DCC today regarding the above scheme (my only option ) but Im still not any clearer. Does anyone know
how they allocate the amt ie the max 275k (max hse price 300k), do I need to be on a certain salary/savings to get this?
And say I did get the 275k and I want an hse/apt for 280k (I know its prob wishful thinking) but would I only have to put the 5k to it or is it done on a % basis?
She also said the repayments on 275k for 25yrs would be around €1350pm-this seems a little high to me but I assume this is for rental portion aswell? And 25yrs doesnt seem as scary as 40 - what do you think? I hope to buy out the council long before that though!
Also does anyone have any experience of how long this takes? She said 8wks aprx for approval, which seems reasonable but is there a waiting list after approval until you are called (ie affordable housing scheme) or how does it work?

Thanks for your help, sorry about all the questions

 

[Daith]

how they allocate the amt ie the max 275k (max hse price 300k), do I need to be on a certain salary/savings to get this?

Yes. They'll decide a loan amount based on your salary and possibly savings. Also any debt, loans, etc.

And say I did get the 275k and I want an hse/apt for 280k (I know its prob wishful thinking) but would I only have to put the 5k to it or is it done on a % basis?

You'd have to put the 5K to it. You can add 30K I believe up to a max of 300K.

She also said the repayments on 275k for 25yrs would be around €1350pm-this seems a little high to me buy I assume this is for rental portion aswell? And 25yrs doesnt seem as scary as 40 - what do you think? I hope to buy out the council long before that though!

You might need to confirm this but I believe if you purchase an Affordable house through shared ownership and want to but out the councils part (the rent) you need to pay back the clawback. Its a remortage as I understand it.

Also does anyone have any experience of how long this takes? She said 8wks aprx for approval, which seems reasonable but is there a waiting list after approval until you are called (ie affordable housing scheme) or how does it work?

Nah. You get approved, told your loan amount and just look around.

 

[nuttybud]

thats great, thanks

 

[mrsk]

The end of Shared Ownership Scheme as we know it is coming.



The Minister for Housing, Urban Renewal and Developing Areas Batt O’Keeffe T.D. announced the following!!!!
"We propose to examine the scope for introducing a new shared equity scheme to replace the current shared ownership option with the aim of offering new opportunities to eligible people to achieve their home ownership ambitions.”

However he doesn't state if the new shared equity scheme will be for everyone.

This is more information about an incremental purchase scheme however it is only for local authority tenants and prospective tenants, which will exclude most middle income earners!!!!

Income cut off point €30,000!!!!! Current Income for shared ownership scheme is €40,000 and this hasn't been increased for two years!!!!

The new scheme will be made available to existing and prospective local authority tenants to purchase new local authority housing. New local authority tenants would be given the opportunity, subject to meeting certain conditions, to become incremental purchasers rather than tenants. This offer would be kept open for up to five years. Local authorities could set aside a certain number of new properties for existing tenants to avail of the scheme (Tenant purchase would remain an option for existing tenants in respect of their current properties).

Under the scheme participants would take out a mortgage for a stake in the property and would buy out the remaining equity stake, at a subsidised rate, over a period up to 40 years. Flexibility is built in to allow for different mixes of repayment amounts and repayment periods.
The scheme would typically be applied to households due to be allocated local authority housing with incomes in the range €20,000 - €30,000. The typical repayment will be pitched at a point midway between what an individual would have to pay as a tenant under a differential rent and the cost of the house under an affordable scheme. The precise amount will depend on the particular mix of mortgage and repayment periods.

Anybody thinking of applying for the shared ownership scheme should get in fast before new scheme excludes most people on the average industrial wage!!!!!

 

[Starky]

I posted some info in the shared ownership scheme here:

http://www.askaboutmoney.com/showthread.php?p=602318#post602318

I don’t want to put a dampener on you but I think there are a few points you have missed during the consideration of the shared ownership scheme, points that I stumbled across during my dealings with the shared ownership loan.

Does anyone know
how they allocate the amt ie the max 275k (max hse price 300k), do I need to be on a certain salary/savings to get this?

Just because the scheme can potentially lend you up to 275, does not mean you will get that. In fact, My annual salary is modestly under the affordable housing limit of 55,000 and when I applied for the S/O loan I was given initial approval of €231,000. I have 0 debt and no other financial commitments, although the council did not check with the ICB as I had a report generated after my approval was granted. What a joke. I reckon you would need to be earring 55+ to qualify for the full 275. Given that DCC would not most likely authorise a shared ownership loan on a car space there was really not a whole lot else I could buy in DCC administrative area for €231,000.

She also said the repayments on 275k for 25yrs would be around €1350pm-this seems a little high to me but I assume this is for rental portion aswell? And 25yrs doesnt seem as scary as 40 - what do you think?

Assuming you had a quick look over my other post you should now understand that even though the loan is 1350 over 25 years, at the end of it you will still owe the council 137, assuming a 50/50 loan. If were able to get a proper mortgage for 275,000 it would cost 1450ish per month over 30 years to repay (not including interest relief), and you would have no outstanding balance so the shared ownership really makes no financial sense. I appreciate though that it can be a good instrument to help out buyers in certain circumstances.

I hope to buy out the council long before that though!

Can you really honestly see yourself having spare cash to do this after a payment of 1350 + bills every month?
I think people take on the shared ownership loan with great intentions of buying out their share over time. In actual fact the majority of people end up remortgaging with a bank a few years down the line to get out of the scheme and begin to pay back the full loan + interest.

And say I did get the 275k and I want an hse/apt for 280k (I know its prob wishful thinking) but would I only have to put the 5k to it or is it done on a % basis?

I’d get initial approval before you start worrying about this.

Also does anyone have any experience of how long this takes? She said 8wks aprx for approval, which seems reasonable but is there a waiting list after approval until you are called (ie affordable housing scheme) or how does it work?

It took months for mine to come through. Then when I finally got it, it was useless, 231,000? I had AIP from a bank for 240,000.

In my honest opinion, this loan is a great way of buying a house with a small deposit of €1300, other then that it’s really not much use. That is at today’s prices anyway.
As I said I don’t mean to put a dampener on you, but I found all this out after applying so it may be useful for you now so that you can plan better for your eventual purchase.


Good luck with your decision.