Negative Equity, Job Loss, Leasing to the Council for 10y but will lender agree?

[cnu]

Hi Ms2001,

Can I ask if the council initially expressed interest and then they said no after inspection? or they simply said "no" even without inspection?

Thanks,
Cnu

 

[Ms2011]

Hi Ms2001,

Can I ask if the council initially expressed interest and then they said no after inspection? or they simply said "no" even without inspection?

Thanks,
Cnu

I approached them, they refused without inspecting the property, the only interest they showed was to asked for the address.
This was their response:

The above property has been assessed for inclusion under lease arrangements for the provision of social housing.

At this point in time the Council does not have a requirement for this property. Your interest will continue to be noted and should circumstances alter you will be contacted.



Yours faithfully,

 

[cremeegg]

I approached them, they refused without inspecting the property, the only interest they showed was to asked for the address.
This was their response:

The above property has been assessed for inclusion under lease arrangements for the provision of social housing.

At this point in time the Council does not have a requirement for this property. Your interest will continue to be noted and should circumstances alter you will be contacted.



Yours faithfully,

I would suggest that if you wish to let your house to the council under the RAS scheme the best way to go about it is to let the house yourself to a tenant who is not on RAS but entitled to be. That is some one who has been in receipt of rent allowance for more that 18 months, (you will need to check exact rules more thoroughly).

When you have a suitable tenant in place, they can then apply to the council to go on RAS.

I did this sucessfully and the inspection was fairly cursory, I suspect because the tenant wanted the house, the location suited her.

However RAS is no huge advantage to the landlord. The rent is low and be careful what is meant by guaranteed. In my case the rent is guaranteed, that is the council guarantee to pay the rent due. The contract is for 3 years. However the council can give a months notice at anytime. In practice all I am guaranteed is a months notice.

Having said that I am happy with RAS as I get paid on time every month and the tenant gets some social welfare benefit as well.

Regarding the tax clearance cert you mentioned. I dont believe the council is entitled to ask for this unless the rent is more than €10,000 per annum.

 

[cnu]

Ms2001 - Thank you.

cremeegg,

When u r saying "rent is low" how low is it from the average-market-rate. Say if the average-rent is 1000 how much do usually council pay?

Also do they negotiate - given ECB interest rise and the job conditions?

thanks in advance!

 

[Ms2011]

I would suggest that if you wish to let your house to the council under the RAS scheme the best way to go about it is to let the house yourself to a tenant who is not on RAS but entitled to be. That is some one who has been in receipt of rent allowance for more that 18 months, (you will need to check exact rules more thoroughly).

When you have a suitable tenant in place, they can then apply to the council to go on RAS.

I did this sucessfully and the inspection was fairly cursory, I suspect because the tenant wanted the house, the location suited her.

However RAS is no huge advantage to the landlord. The rent is low and be careful what is meant by guaranteed. In my case the rent is guaranteed, that is the council guarantee to pay the rent due. The contract is for 3 years. However the council can give a months notice at anytime. In practice all I am guaranteed is a months notice.

Having said that I am happy with RAS as I get paid on time every month and the tenant gets some social welfare benefit as well.

Regarding the tax clearance cert you mentioned. I dont believe the council is entitled to ask for this unless the rent is more than €10,000 per annum.

It's not really the RAS scheme I was looking for, it was more the long term leasing ie. 10 - 20 yrs. This suited me because I don't want to be a landlord but as with alot of people I want to move but can't sell, under this scheme the council would become the landlord for 10 - 20 yrs for my property, all I would be responsible for would be structural things. Alas, it wasn't to be!!

 

[cremeegg]

Ms2001 - Thank you.

cremeegg,

When u r saying "rent is low" how low is it from the average-market-rate. Say if the average-rent is 1000 how much do usually council pay?

Also do they negotiate - given ECB interest rise and the job conditions?

thanks in advance!

The RAS contract says that the council have the right to review rent in light of market conditions. They did this last year and reduced rent to €750. In my opinion €800 or €850 would be a market rent. I tried to negotiate but they told me to take it or leave it.

I doubt that they would consider rate rises as relevant. Although the rental market has firmed up since last year, maybe I will go back to them.