Affordable housing - Clawback

WillIBeRich? said:
I was just thinking that Bobbyg & I was gonna ask you John White have the council not frozen your contract whilst your renting your AH apartment? as I got permission from the council to rent my AH apartment too but they had strict stipulations in place & the first one was that my contract would be frozen for the length of time I planned to have it rented out.
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Sorry, Im not this site often. According to our contract by renting out the property the 20 years still apply but the clawback does not drop between year 10 and year 20. It remains at the original clawback percentage.
 
Donnie_Darko said:
Hi there, can anyone help me understand what the clawback rules are for Fingal Co Co?

If you've lived in property for just over 10 years??

I'd appreciate any info on this?

Thanks
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For me the clawback drops by 10% each year between year 10 and year 20. So by year 20 there is no clawback.
 
Hi There, I originally used this site back in 08 when i was in the process of purchasing an 'affordable home' through SDCC. I had to re-register as email no longer in use! anyway, I subsequently bought in May 2008.

Market value in 2008: 307k
Purchase Price & Mortgage: 249.8k
Discount 18%

Own it 14 years so clawback down to 10% perhaps?

Have an offer of €248 on the property now.

Will I have any clawback? Impossible to get a straight answer from SDCC as that dept is gone now and my solicitor is none the wiser.

Any info greatly appreciated!
 
DvF2022 said:
Hi There, I originally used this site back in 08 when i was in the process of purchasing an 'affordable home' through SDCC. I had to re-register as email no longer in use! anyway, I subsequently bought in May 2008.

Market value in 2008: 307k
Purchase Price & Mortgage: 249.8k
Discount 18%

Own it 14 years so clawback down to 10% perhaps?

Have an offer of €248 on the property now.

Will I have any clawback? Impossible to get a straight answer from SDCC as that dept is gone now and my solicitor is none the wiser.

Any info greatly appreciated!
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Any use?
www.boards.ie

Affordable Housing clawback

I bought my 2 bedroom apartment in 2010 under the affordable housing scheme in 2010 it was valued at €195000 I purchased it from council for €174000 I've seen sim…
www.boards.ie www.boards.ie
 
Bobbyg said:
Sorry but this isn't true, all proceeds above the original purchase price would though
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Sorry my bad I apologise. I should have read the post twice. I now see that they are selling below the original purchase price so you are correct. No money owed to the council whatsover.


All proceeds above the original purchase price and to the market value would go back to the council. This is not technically clawback as it does not apply the clawback %. This offical clawback only applies to sales above the original market value.


Example of How the Clawback Works
John and Mary bought an affordable home. The market value of this property was €280,000, and they bought it at an affordable price of €196,000. So, the market value discount to John and Mary, which is known as the clawback, was 30%.

Scenario 1 – if they sell the home for less than the affordable price If the market value of the home decreases below the original affordable price of the home, and the home is sold at this lower price, then no clawback is payable to the local authority.

Scenario 2: if they sell after 20 years If John and Mary sold their affordable home after 20 years, they would not have to pay any clawback to the local authority as the clawback charge is discharged after 20 years. However, they would have to repay any money owed to the mortgage lender to clear their mortgage.

Scenario 3 - If the Market Value of the Affordable Home Decreases If John and Mary sell their home and the market value has decreased from €280,000 to €210,000, then the clawback would be reduced so that it does not reduce the proceeds of sale below the price they paid. So they have to pay back €14,000 to the local authority when they sell in addition to any money owing on their mortgage.

Scenario 4 – if the market value of the affordable home increases:
If John and Mary sell their home for a higher amount than the original market value for example, €330,000 after five years, the clawback would be €99,000 (30% of €330,000). They would have to pay back €99,000 to the local authority. They would also have to repay any money owed to the mortgage lender to clear their mortgage.

The above covers the main scenarios.
For further information please contact the Loan Accounts Section directly.



DvF2022​

Your situation is scenario 1.


You are actually at a sweet spot to be honest as once you go above the original purchase price but below the original market value the additional money is payable to the council. That was the scenario I mistakenly thought that you were in.

Hope that helps.

Thanks BobbyG for picking that up.
 
skipper1978 said:
Sorry my bad I apologise. I should have read the post twice. I now see that they are selling below the original purchase price so you are correct. No money owed to the council whatsover.


All proceeds above the original purchase price and to the market value would go back to the council. This is not technically clawback as it does not apply the clawback %. This offical clawback only applies to sales above the original market value.


Example of How the Clawback Works
John and Mary bought an affordable home. The market value of this property was €280,000, and they bought it at an affordable price of €196,000. So, the market value discount to John and Mary, which is known as the clawback, was 30%.

Scenario 1 – if they sell the home for less than the affordable price If the market value of the home decreases below the original affordable price of the home, and the home is sold at this lower price, then no clawback is payable to the local authority.

Scenario 2: if they sell after 20 years If John and Mary sold their affordable home after 20 years, they would not have to pay any clawback to the local authority as the clawback charge is discharged after 20 years. However, they would have to repay any money owed to the mortgage lender to clear their mortgage.

Scenario 3 - If the Market Value of the Affordable Home Decreases If John and Mary sell their home and the market value has decreased from €280,000 to €210,000, then the clawback would be reduced so that it does not reduce the proceeds of sale below the price they paid. So they have to pay back €14,000 to the local authority when they sell in addition to any money owing on their mortgage.

Scenario 4 – if the market value of the affordable home increases:
If John and Mary sell their home for a higher amount than the original market value for example, €330,000 after five years, the clawback would be €99,000 (30% of €330,000). They would have to pay back €99,000 to the local authority. They would also have to repay any money owed to the mortgage lender to clear their mortgage.

The above covers the main scenarios.
For further information please contact the Loan Accounts Section directly.



DvF2022​

Your situation is scenario 1.


You are actually at a sweet spot to be honest as once you go above the original purchase price but below the original market value the additional money is payable to the council. That was the scenario I mistakenly thought that you were in.

Hope that helps.

Thanks BobbyG for picking that up.
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Brilliant thanks for explaining! I am better off accepting the offer at the moment so as to not trigger clawback.
Thanks all for your input!
 
Has anyone sold there AH on the 20 year mark ? Was it strange forward with no interference from the council? Or even on year 18 / 19 how did it work out ? Would love to here
 
DvF2022 said:
Hi There, I originally used this site back in 08 when i was in the process of purchasing an 'affordable home' through SDCC. I had to re-register as email no longer in use! anyway, I subsequently bought in May 2008.

Market value in 2008: 307k
Purchase Price & Mortgage: 249.8k
Discount 18%

Own it 14 years so clawback down to 10% perhaps?

Have an offer of €248 on the property now.

Will I have any clawback? Impossible to get a straight answer from SDCC as that dept is gone now and my solicitor is none the wiser.

Any info greatly appreciated!
Click to expand...
I'm pretty sure that you wouldn't get any clawback as that only kicks in if the property sells for above the original property price
 
Hi there, new member here looking for advice if anyone can help. I bought an AH in 2006. MV was €315k and bought for €150k. Huge clawback unfortunately as Its been rented for most of this time. Clawback reduction is frozen when rented out so not reduced from year 10. Will be 2026 when 20 years gone and clawback no longer applies regardless. Looking for information from FCC about selling but they claim they've never encountered a private sale. Seems they've only bought back for social or affordable buyers so said they don't get involved until time to reclaim clawback! If I could pay the balance of the mortgage now (year 17 of 25), would I still have to pay a clawback? Fingal gave the impression the clawback would still be due to be paid even though the mortgage is clear because the 20 year period hasn't been completed. Surely this isn't right?
 
Dinops said:
Fingal gave the impression the clawback would still be due to be paid even though the mortgage is clear because the 20 year period hasn't been completed. Surely this isn't right?
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Why not? Why do you think that the clawback is related to the status of the mortgage at all? Why do you seem to think that clearing the mortgage would nullify the clawback?

Local Authority Affordable Purchase Scheme

The Local Authority Affordable Purchase Scheme is a new affordable housing scheme, which helps people on moderate incomes buy homes at reduced prices. The local authority takes a stake in your home, which covers the reduction in price.
www.citizensinformation.ie www.citizensinformation.ie

Affordable housing - Clawback

I was just thinking that Bobbyg & I was gonna ask you John White have the council not frozen your contract whilst your renting your AH apartment? as I got permission from the council to rent my AH apartment too but they had strict stipulations in place & the first one was that my contract would...
www.askaboutmoney.com
 
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Dinops said:
Hi there, new member here looking for advice if anyone can help. I bought an AH in 2006. MV was €315k and bought for €150k. Huge clawback unfortunately as Its been rented for most of this time. Clawback reduction is frozen when rented out so not reduced from year 10. Will be 2026 when 20 years gone and clawback no longer applies regardless. Looking for information from FCC about selling but they claim they've never encountered a private sale. Seems they've only bought back for social or affordable buyers so said they don't get involved until time to reclaim clawback! If I could pay the balance of the mortgage now (year 17 of 25), would I still have to pay a clawback? Fingal gave the impression the clawback would still be due to be paid even though the mortgage is clear because the 20 year period hasn't been completed. Surely this isn't right?
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Hi dinops
I'm in a simular position. How did you get on with the sale. Did the clawback apply as you were renting the property or not?
Infor would be much appreciated!
 
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