Have an affordable property, but buying a New House ??

But I may want to keep it is the point..

is this possible ?
while purchasing another property?
 
But I may want to keep it is the point..

is this possible ?
while purchasing another property?
Click to expand...
Your thread is nearly a year old. That would seem to answer your question. As my mother would say - you can, but you may not.

You've not said why you want to hold onto the AH property. I can only assume for financial gain down the road. How's the strategy working out?

Your reasons for buying a new property are perfectly valid. Presumably the only thing stopping you back is the pre-existing mortgage. Just sell the AH property and move on with the rest of your life. You'll have no debts and will be in a great position to buy a new property.
 

Yes but ALOT has changed in the past year !!!

especially the fact that the affordable housing section has been shut down by the current government !!!
 
I might be late on the scene but I should be able to help.

I am sure I heard something recently where the government were looking at allowing people to sell AH, this would affectively remove the claw back in my opinion.

I have an AH since 2002 and when interest rates were going up I asked if I could change mortgage providor but I was told the claw back would apply as the co co would lose their leverage on me so I assume the same applies if you pay it off early.

The wife and I recently got married and the AH is in my name, we have just cleared a loan we had and we both got rid of our credit cards. The bank advised us to get saving and continuous regular saving and no debts would really strengthen our hand. The bank person said we would have to be able to demonstrate that we could pay both mortgages and they don't consider rental income as steady.

If we can sell without clawback I may do that, otherwise we will have to save 15% of the value of the house we are looking at and both be debt free and in permanent jobs so we can make the payments.
 
Hey Steevo51

You look to be in exact same boat as me !!

Quick question though. Do you have your mortgage with the Co Council ?
Or with Bank e.g. EBS/BOI/AIB ? The rules are different in this situation regarding releasing the clawback...

I have a nice lump sum, and both of us are regularly saving. Hope to have about 10%-15% too by end of next year to buy a new house

What I am wondering is, will the bank not allow you to buy new property with the aff housing clawback on the property ??

They told us before they would not ;(

Maybe things have changed as that was about 3 years ago

Anyway, let me know

Cheers
 
BillyPiper

Can you explain how "The rules are different in this situation regarding releasing the clawback..."

I too are in the same position as you and Steevo.

Also are the rules set by goverment of the local authority. The all seem to have different policies.
 
steevo51 said:
I am sure I heard something recently where the government were looking at allowing people to sell AH, this would affectively remove the claw back in my opinion.
Click to expand...

People are already allowed to sell AH. The government is not looking at allowing them to sell without triggering the clawback, what they've promised is to allow people to remortgage with triggering the clawback (although they've been promising this for yonks without any action). They've also removed the clawback provision from anyone buying new affordable housing, which there is very little of in any case. But those of us who already bought are still subject to the clawback if we sell. The one exception is that if the value of your property has dropped below what you paid for it, which is the case for a lot of affordable housing, there won't be a clawback anyway.

These are national rules set out in legislation.

I wonder if we should have a sticky on this - it comes up time and time again.
 
+1. It seems people are under the illusion they can't just sell up. The clawback only applies on a gain in the property gain - of which there is now none.
 
Hi all,

Old thread I know but I am still in the same position, actually except that im now married

Anyway, I still own an affordable property. We are still saving, and keeping our options open regarding buying a house. BUT i thought the affordable property was to be your one and only living residence ?

Therefore, can i actually buy a new property regarded as a live in property i.e. non investment ?

Has anyone done this out there yet ?
Is it possible ? Or is it a situation when finalizing deal with bank they see that other property is affordable housing, then wont provide mortgage based on fact there is a clause on it ??

Bringing up this question again as things may have changed in last year !!!

Thanks a million
Billy
 
Hi Billy,
While we are not in the exact same predicament as yourself we have been in contact with our bank for the past year or so regarding remortgaging our affordable home. Bottom line is no bank will take our property as collateral simply because they will not have the Primary Clause on the house. This lies with the damned Council until mortgage is fully paid (under current legislation at least). However we have been informed by our local TD's and by the office of the Minister Of Housing (Jan O'Sullivan) that this is up for review later this year. I won't be holding my breath.
 
I am sale agreed at the minute on a second home I will post details once it has all gone through (if it all goes through).
 
Hi BobbyG

Ok, great... Keep me posted please
Even if you want to furnish any details via PM

Hope all goes well for you !!!

Thanks again
 
Hi would also love to know how things worked with buying the second property.. thanks!
 
If your planning on renting it out be sure to have sound neighbors!!!!

I'm trying to get confo fro the CO Co about re-mortgaging & buying them out but it can't be done. I was having a chat with them about all the ins & out of the contract & have been told that as it is government legislation they can do nothing for me.

In conversation they told me that are currently bringing a girl to court as they found out she was renting the house out & living with her boyfriend. I'm sure it will have some tax implications for her as she wasn't declaring her earning on the house to the tax man.

I was under the impression if you sold the house & your mortgage cleared that the Co Co would get 100% of the money once the mortgage was cleared. From reading the comments I bought my house for €151,000 and have €130,000 left. If I sold it for €140,000 could I hold onto the €10,000 & the Co Co wouldn't be entitled to it as my house was purchased for €151,000????[/QUOTE]
 
The council are only entitled to a portion of any profit made on the sale so you would have to sell for above 151k for the council to be entitled to anything.

If you do sell for below 151k they may seek a valuation to ensure you are not trying to get out of paying them. If that was the case and the valuation came back at higher than the 151k there would be an issue.

From my point of view the council gave us permission to rent out the apartment as we cannot sell, but one of the conditions was that we would have to be fully tax compliant, which we are.
 
Hi Society..just to throw a bit more light on it in case it helps..i have an apt with dlr co co which i'm looking into selling.. i was advised yesterday that if my purchase price years ago was 190k and i sold it for 210k then i would give the council 20k and keep the rest to pay off the mortgage remaining etc.. the situation previously was that i would have to pay 50% clawback but that isnt valid anymore because of the drop in the price.. hope that helps..
 
Hi Bobbyg could you PM me please when you get the chance?

I am in a similar position at present and would like to hear how you got on.

Thanks
 
Thanks for your mail Bobbyg I tried mailing you back but it kept failing.



I bought an AF apartment from Fingal. My gf has since moved in and we have managed to save a deposit for a house. We are looking at houses now and due to neg equity would like to rent out the apartment so it is interesting to hear your story.



Did the council give you anything in writing to say that you could rent out the apartment? And did they mention anything about the clawback being extended? Also was it much hassle setting yourself up as a "landlord" with taxes etc?



Thanks,
 
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