changing mortgage provider and being able to rent out affordable home.

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tom1ie

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I bought an apartment 3 years ago through property path in sdcc and I've recently been told if i change the mortgage provider i was told to go to by sdcc, (ebs or boi), i will effectivley be "buying out" the council's clawback.
The councils clawback will be zero as the appartment is in negative equity.
This now means i can rent out the appartment as sdcc has nothing to do with it any more.
Is this true? or just too good to be true?!

This seems to make sense because in the boom times if you wanted to move mortgage provider, you had to pay the relevent clawback as sdcc looked upon this as selling your apartment.
 
I would be cautious about assuming you've "bought out" the clawback when in fact there is nothing for you to buy out. This may be the way that SDCC are interpreting it but it's not necessarily something that would stand up in court, in terms of the way that the legislation and your contract were drafted.

As of last year DCC were officially taking the position that the no-renting rule still applied in such cases. They're now, apparently, turning a blind eye but this is not the same as saying that there is no such rule. So it seems to be a matter of local authority policy. You should get confirmation from SDCC before proceeding, preferably in writing.

Incidentally, it wasn't just SDCC's interpretation that you had to pay the clawback when you remortgage - that's the way the law was written. The Housing Minister in the last Dáil promised to amend the law but it never happened.
 
Contact SDCC and they should tell you.. let us know please the results ;)))

Thanks a mill

Brooklyn said:
I would be cautious about assuming you've "bought out" the clawback when in fact there is nothing for you to buy out. This may be the way that SDCC are interpreting it but it's not necessarily something that would stand up in court, in terms of the way that the legislation and your contract were drafted.

As of last year DCC were officially taking the position that the no-renting rule still applied in such cases. They're now, apparently, turning a blind eye but this is not the same as saying that there is no such rule. So it seems to be a matter of local authority policy. You should get confirmation from SDCC before proceeding, preferably in writing.

Incidentally, it wasn't just SDCC's interpretation that you had to pay the clawback when you remortgage - that's the way the law was written. The Housing Minister in the last Dáil promised to amend the law but it never happened.
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