Government leasing residential property for 10 - 20 years

Not sure if this has been discussed on AAM already. I did a search and didn't see anything. The Government is inviting submissions from property owners who would like to lease their property to a Local Authority or approved housing body.

Details here http://www.housing.ie/leasing

Lease types vary but 10 - 20 year leases at 80% of market rent are mentioned, with an exemption from the NPPR and having to register with the PRTB.

Liam D. Ferguson

Any idea why the exemption from the NPPR?

Presumably the exemption from registering with the PRTB means you don't have to prove you've registered in order to claim your mortgage interest relief. Does the Landlord 100% HAVE to provide their PPSN to this scheme in order to be eligable?

I can almost understand the exemption from the PRTB registration for the longer leases as technically the Local Authority will be acting as the "landlord" for most practical purposes. No idea why the NPPR exemption is there, except perhaps as an incentive for property owners to sign up.

That's quite interesting.

For someone emigrating, but in too muich negative equity to sell, it could be a way of covering a sizeable chunk of your mortgage and losing the hassle of renting your apartment out.

80% of market rate though. A price to pay. But then again, a price that could be worth the lack of "landlord-tnnant" hassle.

Kine said:

80% of market rate though. A price to pay. But then again, a price that could be worth the lack of "landlord-tnnant" hassle.

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Yeah I was thinking about that. When you consider that letting agencies typically charge 8 - 10%, the NPPR is €200 and most importantly you're getting guaranteed rents with no void periods for 10 - 20 years, I think it's pretty reasonable.

I'm not sure they have thought it out though. What happens if they have a tenant in there set in their ways for 10 years and the LL decides to get it back ? Will they be forced to buy or force the LL to sell ?

elcato said:

I'm not sure they have thought it out though. What happens if they have a tenant in there set in their ways for 10 years and the LL decides to get it back ? Will they be forced to buy or force the LL to sell ?

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An interesting point. They do mention you can get a call option put into the contract for a sale process....but if no such option exists it could get messy. Technically, you will own the property so will be within your rights to reclaim it after say 10 years. Would be a little harsh on the person living there though.

Am considering the option myself though, as will be emirating in the not-to-distant future, and this could save me a hell of a lot of hassle. Lower rents...yes. But no hassle would be worth it IMHO.

Plus, rents seem to be higher where I live again (according to what people are looking for on Daft anyway).

I see that there are occasional rent reviews and that the "market rent" is determined by the Local Authority. I wonder is there a dispute mechanism if the Local Authority claims that market rent is lower than what the property owner believes it to be.

I suppose you'd have to see what's in the actual contract. I think they mention each rent is on a "case-by-case" basis.

If I remember what I read correctly, the reviews are every 3-4 years. Presumably, if they have a right to try get lower rent (due to market conditions) you would have a right to look for higher rent under should it swing the other way?

Kine said:

I suppose you'd have to see what's in the actual contract. I think they mention each rent is on a "case-by-case" basis.

If I remember what I read correctly, the reviews are every 3-4 years. Presumably, if they have a right to try get lower rent (due to market conditions) you would have a right to look for higher rent under should it swing the other way?

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Personally I'd like to see a bit of transparency on this "case-by-case basis".

Most of the LA's are virtually bankrupt and LA housing formed a large element of this.