Shared ownership scheme questions for affordable home in Clonshaugh

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A friend was offered a 3 bed house in Clonshaugh - approx 245K - DCC have not provided market value figure yet.

Went out to have a look and they are nearly built.

We're looking at market value in area to determine if it is worth it etc. Also considering if he wants to move there as not from the area or anywhere near it.

My friend may not qualify for full mortgage even with savings without using Shared Ownership scheme.

Does anyone know for the Shared Ownership Scheme:
  • Who determines the max ratio you can borrow if you go to - max is 75:25 (buyer:council)
  • Do you go through the bank for the Shared Ownership loan or this processed via the council only?
  • After 3 years if you want to get your own mortgage do you have to pay the discount back on the council’s share in relation to the affordable house? Council seems to think so. They say you actually have to pay the full discount on the affordable house back when you remortgage in your own name.
  • In relation to above: what is the risk in relation to negative equity? If the house falls in value in relation to market value what happens then.
  • Can you get TRS on the Shared Ownership scheme?
  • Is it worth it if you have to pay the rent on the councils share?
If you don't take this particular house - what does it do to your chances of getting another affordable house?
How does it affect your place in the future AH draws?

Any information appreciated.
 
Clonshaugh is in DCC, as the OP mentioned.

Who determines the max ratio you can borrow if you go to - max is 75:25 (buyer:council)
Not sure I understand the question exactly but the Council seems to determine just about everything.

Do you go through the bank for the Shared Ownership loan or this processed via the council only?
Council only.

After 3 years if you want to get your own mortgage do you have to pay the discount back on the council’s share in relation to the affordable house?
At the moment yes. This is in the legislation, which apparently is being reviewed.

In relation to above: what is the risk in relation to negative equity?
No risk. Where the house reaches negative equity the clawback stops.

Can you get TRS on the Shared Ownership scheme?
Yes but only on the proportion of the property that you own outright - not on the Council's share (and to answer the question that usually follows this, you can't claim rent relief on the Council's share). So it's a good idea, if you can, to try to buy out the Council bit by bit.

Is it worth it if you have to pay the rent on the councils share?
That depends on the individual's personal circumstances really.
 
Thanks for your replies. I feel the Shared Ownership Scheme was appropriate 10 years ago when the value of houses and rent payable wasn't as high but we'll do the figures and see.
 
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