remortgage possible with affordable housing?

manunited

Registered User
Messages
41
Silly question i'm sure but has there been any movement on this legislation being enacted so that we would have the option to remortgage? Thanks
 

Tired Paul

Frequent Poster
Messages
263
Latest update I've had (last week) was from the office of Jan O'Sullivan (Minsiter for Housing). It seems that Autumn this year there will be an overhaul of the legislation. But I couldn't get any finer details from them.
 

Society

Frequent Poster
Messages
163
Can I resurrect this thread and ask has anyone been successful recently in remortgaging with a bank where their loan is with the council and discharging the clawback to get rid of the council? I could be wrong but the legislation does seem to support a triggering of the clawback with a remortgage however the council are saying it can only be triggered with a sale.
 

passat01

Registered User
Messages
47
I realize that it has been over 3 years since the last post and 5 years since the legislation change question was posed......but....
Did the overhaul of the legislation ever get completed?
Can AH owners who bought pre 2010 now re-mortgage without triggering the clawback?
 

dshakey

Frequent Poster
Messages
65
Like above reader. Its old post. But has anyone been successful getting a remortgage on an A/ah house
 

renter45

Frequent Poster
Messages
109
Like above reader. Its old post. But has anyone been successful getting a remortgage on an A/ah house
Is your mortgage with a bank or council? If its with bank no other bank will want the mortgage due to the county council having a charge on the mortgage. If its with county council, are their rates not cheaper then banks??
 

dshakey

Frequent Poster
Messages
65
Been looking into it further. You can remortgage but. He council want to become 1st priority in the charge order and bank then becomes 2nd.

No bank will agree to be second and let council get thier cut first.

So basic means we can not remortgage.
 

MrsMoo

New Member
Messages
8
Hi, these changes were brought in under the 2009 Housing Act. I can't post links but if you look at section 88 (6) (b) (i) and (ii).

The staff in the council might not know it but these sections grant them the power to consent to the new mortgage having priority over their charging order. You should raise it with them quoting these sections. They don't have to consent though, if you're remortgaging to buy a new jeep and taking the kids to Disneyland they might say no. If you're remortgaging to get a better rate or extend your home for a growing family they might consider it under those sections quoted above.
 

Brooklyn

Frequent Poster
Messages
417
Hi, these changes were brought in under the 2009 Housing Act. I can't post links but if you look at section 88 (6) (b) (i) and (ii).

The staff in the council might not know it but these sections grant them the power to consent to the new mortgage having priority over their charging order. You should raise it with them quoting these sections. They don't have to consent though, if you're remortgaging to buy a new jeep and taking the kids to Disneyland they might say no. If you're remortgaging to get a better rate or extend your home for a growing family they might consider it under those sections quoted above.
This Section was only commenced in June of this year so I'd say it's highly likely the staff in the Council have never come across it yet!
 

MrsMoo

New Member
Messages
8
Yes, I'm new to this site and I couldn't edit when I realised it was only commenced in June of this year. Anyways the legislation is in force now so owners of affordable apartments can now remortgage!
 

dshakey

Frequent Poster
Messages
65
Reading this act is confusing.. council have agreed to a remortgage. But they want to be first priority and bank the second..
To me the below reads the council will have the first charge and bank will be second and this same message I've gotten from the council. So still in same position that can not remortgage..

Ahousing authority may, subject to subsection (6), enter into an agreement with a holder of a licence under the Central Bank Act 1971 , a building society or other financial institution that a charge proposed to be created by it by a charging order shall have a priority, as against a mortgage or charge proposed to be created in favour of that holder, society or institution, that is different from the priority the charge would otherwise have if this subsection had not been enacted.
 
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MrsMoo

New Member
Messages
8
Sorry the relevant subsections are:

88 (5) A housing authority may, subject to subsection (6), enter into an agreement with a holder of a licence under the Central Bank Act 1971 , a building society or other financial institution that a charge proposed to be created by it by a charging order shall have a priority, as against a mortgage or charge proposed to be created in favour of that holder, society or institution, that is different from the priority the charge would otherwise have if this subsection had not been enacted.
88 (6) A housing authority may only enter into an agreement referred to in subsection (5) if it considers that the agreement will—

(b) enable a purchaser— (i) to refinance
an existing advance of moneys from the holder, society or institution referred to in subsection (5), or (ii) to obtain a further advance of moneys from the holder, society or institution referred to in subsection (5), for any purpose.

88(5) basically says that a local authority may agree to let a banks charge have priority over their charging order - they already did this when you originally purchased this property.

88(6)(b)i and ii allow a local authority to do this in the case of a remortgage with the original bank or in the case of a refinance with another bank.

Until this section was enacted in June of this year it wasn't possible for a local authority to do this. If you have a solicitor acting for you talk to them about this.
 

dshakey

Frequent Poster
Messages
65
Thanks mrsmoo. Will bring this to the council's attention.
I have received feedback from the housing minister that section 5 of the Housing (Miscellaneous Provisions) Act 2009 was admend to faciliate this, but is only for the new scheme
I am not convinced so have gone back for clarification.
 

PeakyBlinder

New Member
Messages
1
Hi All,

I bought a AH in 2006 and have applied for planning permission to extend recently. I'm wondering if anyone else has received clarification if the new act included the old scheme too? The council have told me they will try and accommodate me moving to a bank and have requested legal advice from two solicitors however they cannot get a reply on this from their own counsel so it seems it still remains unclear??
 
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