How to protect my inputs into the house?

I am at the stage of signing the contract for affordable house. I want to protect my inputs into it in the future - I am planning to built an extension to it, the house is very small. I know that the legislation allows for that - my affordable value supposed to get increased by the value of extension.

When I spoke to the council about the mechanism - how to determine the value, what is going to happen at the point of selling the house - they told me that they will look at the market value of the property next door and take percentage of clawback from that market value at the time of selling.

So basically I didnt get anywhere with them. It looks like legislation mensioned something but there is no mechanism how to implement it. Council sent me to the solicitor, I dont think he ll get me somewhere either.

The market price of the house I am offered is overvalued. I dont want to discuss this problem here, I am not going into dispute over it - dont think I ll succeed. But want to protect my money if the house price is going to drop more.

I would like to hear from anybody who had put a specific clause into a contract or dealt with this issue in any other way. Thanks.

Julia555 said:

The market price of the house I am offered is overvalued. I dont want to discuss this problem here, I am not going into dispute over it - dont think I ll succeed. But want to protect my money if the house price is going to drop more.

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why do you think you wont succeed?

Hi, We are selling our affordable house in Longford and I know you will get allowance for material input, so the cost of any extensions will be allowed to you before calculation of market value.

Does anybody know if there is allowances for things like new kitchen, decking to garden area and flooring throughout house. We had none of these things when we bought the house. Our council seems to think not!

Julia555 said:

The market price of the house I am offered is overvalued.

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On what basis? It sounds like you are expecting the council to take all the risk (i.e. if prices fall) but you expect to take the benefit if prices increase...

rmelly said:

On what basis? It sounds like you are expecting the council to take all the risk (i.e. if prices fall) but you expect to take the benefit if prices increase...

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its a proven fact that affordable homes are being offered at an inflated market value - so its a legitimate concern

What is the value of allowance? Is it based on architects certificates or other? I don't know how mad can I go with the extention.


Sorry, but I know how much houses cost in the locality, new and second hands. There are issues with the house that I am offered and if I was given a choice to go on the market with the same money I would have picked a nicer house.

The council is alredy looking after it's inr#terests by means of the clawback. All I want is to protect my own money, my savings in fact - bank wont give any more then 97% of the value of a house, and I am working too hard to lose the money that easy.

how is this any different that anyone else purchasing without an affordable scheme and risking negative equity if prices drop?

if you have issues with the house offered, reject it and go back to the end of the queue or lottery or whatever.

rmelly said:

how is this any different that anyone else purchasing without an affordable scheme and risking negative equity if prices drop?

if you have issues with the house offered, reject it and go back to the end of the queue or lottery or whatever.

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Dear rmelly,
I don't have time or patience to get involved into debates with you. It looks to me that you are not familiar with the subject and maybe in the wrong place altogether.

The purpose of my post was to seek an advice re: how to determine the value of extention to the house, what is the procedure for it.

Thanks!

Julia555 said:

Dear rmelly,
I don't have time or patience to get involved into debates with you. It looks to me that you are not familiar with the subject and maybe in the wrong place altogether.

The purpose of my post was to seek an advice re: how to determine the value of extention to the house, what is the procedure for it.

Thanks!

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unfortunately when you bring up this topic you will get a number of gob****es making out that you are being given a home for free etc etc - you are right to question the valuation as this is simply common sense to have an indie valuation on a six figure purchase - to help you, can you tell me if its through the affordable homes partnership you are buying or directly from the council (i.e is is the initiative or the scheme)

cmb. said:

can you tell me if its through the affordable homes partnership you are buying or directly from the council

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Thanks for your response. I am buying through the partnership, but paperwork comes from the local council. My mortgage is with the bank.
I will be asking the solicitor to put the clause into the contract for me for establishing the extention/improvement value.