Advice please (shared ownership)

V

vixter

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Hi all,

I purchased a one bed apartment under the shared ownership scheme in mid 2005. The value of the apartment at the time of purchase was 265,000. It was sold to me at at 200,000 and I paid a cash deposit of 15,000. My understanding is that I own 65% of the property. The clawback is 33%

I plan to travel next summer for 12 - 18 months. Obviously as I am not permitted to rent out my apartment or avail of the rent a room scheme (it's a one bed) I have a problem. Do I try and sell when this could be the worst time to do so and when I had wanted to live in it for the coming years?

Or do I buy out the council's portion with one of their house purchase loans and then seek their permission to rent it out for the above period?

The other option was remortaging but I don't think any bank would give me the mortgage of 290,000 which would be the value of the apartments now.


Anyone in a similar situation?
 
I really cant help you at all as I dont know what the council does in that situation. Do you know if the council can buy back property? What are the penalties from walking away from property???
 
Get a 100% mortgage off the DCC, I'm led to believe these still exist. Especially if you've been maintaining payments for over 2 years. Then rent out. It should be that simple but good luck
 
Hi, thanks for your replies. I am confident that I would get approved for the 100% mortgage but the application form that you use involves signing a declaration that you "undertake to remain in residence in the house and to reside therein as your normal place of residence for the term of the loan". To me this reads as no renting. What do you think?


Thanks.
 
Have you asked the council about it? They might have some discretion around people travelling etc. Other people have mentioned here that with affordable housing it is sometimes possible to extend the 20 year clawback period by a year to travel. Not sure how it would work with shared ownership but might be worth talking to your council.
 
It is my understanding that you can approach the council and they will consider on a case by case basis, usually they will extend the clawback period ie if it is 20 years they will extend by the amount of time you wish to take a break from the scheme, so it will be 22 years for example.
Did you have your apartment valued at 290K? Chances are that the value has gone down from the value at the time you bought, as it has for every other apartment in the country.
Also you can apply for a 99%/1% share under the shared ownership scheme with Dublin City Council, mine originally was 50/50 but recently got it changed, the Council ofcourse don't tell you these things, you have to learn about them on forums! Your mortgage repayments will go up ofcourse.
 
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