Selling an affordable house?

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Andy_and_lou

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Has anyone done this?

I've been thinking recently about selling my affordable house, I have it less than a year. The problem is I'm now engaged and the house is only 2 bed it's in a good area but not so great estate iykwim. I have 1 child from a previous relationship and my fiance and I would like to have more children, so obviously the house is going to be too small.

My fiance's parents have made us a generous offer (of money) to help us buy a bigger home. They live abroad and were staying with us for the past 2 weeks and saw first hand how little space we had.

Anyway the bottomline is has anybody got advice on selling an affordable house. Would love to hear from you! Thanks
 
By affordable house do you mean one you purchased through the Council Affordable Housing Scheme?

If so, there are clawbacks involved if you sell the house within a certain timeframe (up to 20 years I think).

You should have the information needed if you look at the documentation you got when you signed for the house. Alternatively, contact the council and/or your solicitor for further info.
 
Yes that's it, I bought through the city council. I know there are clawbacks but not 100% sure of what exactly they are, I know my Solicitor isn't totally aware of the system either as it's all new to him. Also I have put alot of time and money into the house so I want to make sure that I get that back when I sell.

I would really like to hear from someone who's gone through this process???
 
There is some information on oasis() but its not 100% clear.
It appears that you will have to pay over a percentage of the sale price that equates to the discount that you received when you bought it.
So if got a 20% discount when you bought it. You will have to payover to the countcil 20% of whatever price you sell it for.
Thats just my interpretation.Others may disagree.
 
Hi.

Basically if you move within the first ten years you will need to refund the council in full and thereafter year 10 -20 the amount you owe reduces by 2% per year. We've just purchased a 3 bed. I really don't know why houses with rooms less than that are built. They are obviously aimed at single parent families and that is fine if in very built up areas.
we are buying in Cashel, Tipperary, and in an estate of 95 houses, 15 are two-bed. They can't be sold and are going to become hang out areas!!!
 
Hi seriams, just curious did you buy your 3 bed on the affordable housing scheme? mind me askin how much did you have to pay?
 
Hi,

We bought under affordable scheme. Were only waiting 5 weeks for offer. Were living down south where affordable housing has only become known thanks to RTE's I'm an adult.....
We won't be selling but if we do, we will owe council difference of what we paid and the market value at time of sale.If your from Dublin, you'll be depressed if I tell you what we bought for
 
We paid 159,000. Its a three bed three bath hse. Our master bed room is 18' x 14' which is pretty big.
I'm presuming most of you are in Dublin or close by. What is same up there?
 
Hi Andy and lou, bought an affordable house five years ago with fingal. now my family too has grown and would love to see you get an answer to your question so I could find out what I should do. This is going to be a common question in years to come. What's the chances of a person's circumstances changing over a 20 year period...pretty blooming high! All I'm curious now to find out is, can I sell the house at any price. I think the deal is you HAVE to get it valued by one of their approved valuers, you have to give the % discount they gave you of the profit back, in my case 47%, and then you have to of course pay the remaining mortgage off....your certainly more limited on these houses...but was very happy to get the house at the time.
 
I too bought an affordable house four years ago with Fingal. I received a letter telling me what my clawback would be in the event of my selling the house and the clawback worked out at 30.4%. Recently a house the same as mine sold in the estate for 318000. This is a two bed terraced house.

When I bought my house it was valued at 190000. If I was to sell my house now, repay remainder of the mortgage plus clawback I would still have 100000 left over (before tax of course!). I think that this is a good deal as I would never have been able to save this amount in this timeframe!

The clawback is payable if you sell your house and is added to the amount you still owe on your mortgage. This will require an valuation that will have to be submitted to the Council, I dont think that they require you to use a particular valuer. Therefore if I was to sell my house I would have to pay a clawback of 30.4% of 318000 (if that was the sale price.) This amount would be added to what I owe on my mortgage and that would be the amount I would need to pay to settle my mortgage account with the Council.

The clawback decreases by 10% each year for 10 years after year 10 and you do not have to pay any clawback if you sell after 20 years.

Remember also if you sell before 5 years of ownership you will be liable for clawback of stamp duty!

Hope this helps

D
 
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