How does buying Council out work?

[scatriona]

It was a relatively painless procedure considering I was expecting it to be horrendous. B

Hi - I recently completed the same process and have to agree, the council side was a doddle; getting the rate from the new lender was the painful bit and that was due to the current, unstable market, not the actual Affordable element. It's now completed - not as low a rate as I would have liked or what they originally offered, but it's done!

S

 

[bradfield]

Hey Scatriona,

I agree, I didnt get my original rate but it didnt work out too bad either and now I have a house that I can do whatever I want with!

The news about the new housing bill is fantastic for those who want to improve their houses or release some equity, its long overdue and fair play to those who lobbyied for it, I know some of them are regulars on this board so well done to them. It anyone is interested all the details can be found here

http://www.environ.ie/en/DevelopmentandHousing/Housing/News/MainBody,17936,en.htm

B

 

[Evostik]

The link for Minister Gormley's announcement is http://www.environ.ie/en/DevelopmentandHousing/Housing/News/MainBody,17936,en.htm

Excerpt from statement: - "Minister Gormley pointed out that the Bill amends affordable housing legislation to remove an anomaly in existing clawback provisions. The clawback was always intended to apply only where affordable houses were resold. The Bill will amend the law to “enable owners of affordable housing, with the agreement of lenders, to re-finance or top-up their existing mortgage loans, without triggering the payment of the clawback charge”, said the Minister."

 

[Brooklyn]

It is good news but keep in mind the bill still has to go through the Oireachtas and God knows how long that could take...

 

[Cheeus]

Also, how will it effect those who have already purchased believing that they could remortgage, pay the clawback, thus freeing themselves from the conditions re primary place of residence etc..

Some people have bought and not being too concerned about the inflated market values because it was in their contracts that they would pay the clawback if remortgaging - in other words there was some security in the clawback being triggered in a falling property market; it afforded some people the opportunity to own their property outright.

How will this bill effect those who have already purchased?

 

[emerald lass]

Hi - can someone tell me if this new law (if and when finally passes) means that someone who transfers their mortgage to a bank, can then freely rent the house out?

I am renting my house out at the mo (not AH) but my neighbour bought hers as AH, she wants to move her mortgage, as she thinks it means she can then legally rent the house out. Is this true, or do the same rules apply regarding rent as before?

 

[Cheeus]

Hi - can someone tell me if this new law (if and when finally passes) means that someone who transfers their mortgage to a bank, can then freely rent the house out?

Not unless the full clawback is paid.

Question is will the council now still give the option of paying clawback upon remortgaging, or will the only option be to remortgage without clawback and retain all the restrictions of the scheme inluding requirment around primary place of residence?