Affordable housing - Clawback

Discussion in 'Affordable housing and shared ownership' started by CryptoPaddy79, 30 Mar 2019.

  1. CryptoPaddy79

    CryptoPaddy79 New Member

    Posts:
    2
    Hi Folks;

    Hoping someone with experience could help me out with this. There is some brilliant worked examples and advice on here but I cant seem to find one that fits my situation albeit some really close ones - just posting this as a sanity check and hoping someone can lend some expertise.

    My Situation....
    I bought an affordable house with Fingal Co. Co in Jan 2005, brilliant opportunity and have loved living here, but a wife and two active kids later see's us looking to get some where with a little bit more space.

    €285,000 "Market Value"
    €185,000 Affordable price paid
    35% Discount

    Approx. sales price I may be able to get is around €240,000

    We are 15 years here so we will be 5 years into the 10% reduction each year after 10 years which should reduce the clawback by 50%.

    I am just wondering when does the clawback kick in...is it after "market value" €285,000 is reached or on the total sales price at the time of sale?

    My calculations are: (Hope I am wrong)

    Sales Price - €240,000
    Less owed on original mortgage - €185,000 (we settle outstanding money owed on mortgage and keep the balance)
    Profit for Fingal Co.Co - €240,000 - €185,000 = €55,000
    Profit for us - €0
    (we can only make a profit after the €280,000 original valuation is reached)

    Any help would be greatly appreciated.
     
  2. Easter

    Easter Registered User

    Posts:
    20
    Hi there
    The clawback is applicable to anything above the affordable price you paid. So if you sell for €240k, the clawback would be €55k -50% because you have lived in it for 15 years. So you would make €27500 profit on a €240k sale. I haven’t sold myself, but am certain this is how it works.
     
  3. CryptoPaddy79

    CryptoPaddy79 New Member

    Posts:
    2
    Hi Easter,

    I looked into the legislation and the Fingal website, I am pretty sure you are correct.
    Thanks so much for the reply, appreciate you taking the time to answer.

    S
     
  4. Carolinedaisy

    Carolinedaisy New Member

    Posts:
    1
    Hi, I'm thinking selling my AH apt too, I thought my 10 tens was up at end of May this year, I've been asking the council for clarification and it took them months to answer me. I thought I had 30% discount but it's 21.92%. My apt is worth a fair bit more than it was 10 years ago. If I sell it for the market price it was 10 years ago (which wont happen) I owe them the difference between what I paid and the market price. If i sell it for more its 21.92% of total selling price. This is where we have an issue now, as far as I'm concerned my 10 years is up at end of May 2019, the council said it's end of May 2020. So I asked for clarification with a few scenarios and the 10% discount only applies after the 1st completed year and 10 years residence so it's really year 11-12 before the discount applies!!
     
  5. Easter

    Easter Registered User

    Posts:
    20
    After the 10th year, the clawback reduces by 10% for every subsequent year you are resident in the property. So yes, you don’t get any reduction until your 11th year.