Don't want Affordable House anymore.

F

Frump

Registered User
Messages
2
Hi
I bought an apartment from my local authority under the affordable housing scheme in 2006. It was valued at €300k, (I laughed my ass off when I seen that letter recently) and paid €150k for it. The mortgage is with the authority, not a bank. I was delighted at the time and lived there happily for 7 years.

Last year myself and my partner moved into her parents, saved like maniacs and then bought a house together where we want to stay forever. It took a bit of manoeuvring to get the bank to agree to approving my side of things with the apartment but we got around all that eventually.

I have somebody renting the apartment and it's just covering the mortgage + management fees at the moment. I could get €200+ more renting it but I know this person well and am happy that they are looking after the place. She has recently informed me however that she is looking to rent a house now and has given me a couple of months notice.

There is probably 125k outstanding on the mortgage and I would guess I would get 95k-100k for it if I was lucky. To be honest, I wouldn't say I'd sell it to easy at all.


The bottom line is I don't want this apartment anymore. If somebody could guarantee me they'd rent it for another 20 years I'd be okay with it, but I really don't want the hassle of looking for tenants, collecting rent, paying for maintenance etc etc. I just want rid really, I don't care that I can make money on it at the moment with it being a great time to rent out property.

Will the local authority buy the apartment back from me?
Will they put somebody in it renting long term?
Can I just give the keys back and say good luck?

Any advice on what people in similar situations have done?
 
The answer to all 3 questions raised by you is no. The local authority have no interest in this property since you attained ownership of it. You are in the same position as any other mortgage holder and will need to deal with your Bank if you have a problem meeting the mortgage payments.
 
There's no bank, it's the council I have the mortgage from.

Why would they have no interest in it when there's long waiting lists for housing?
 
Apologies Frump, my mistake. Obviously you will need to approach the Council to discuss/agree any offer. I have'nt seen any recent post on AAM relating to dealings with a Council mortgage, so you find it difficult to obtain information in respect of any similar cases on the forum.
 
Frump, might be worth checking out the Rental Accommadation Scheme with the council, a work colleague of mine has entered a 10 year rental agreement with them (over a year ago now) so doesn't have to worry about his place for 10 years.
Didnt appeal to me as didnt want to tie my place up for 10 years, but sounds like it might possibly suit you
 
AFAIK, you are not allowed to rent out an AH. If you sell within 20years of purchase, clawback applies.
 

Which council is that with hippy if you don't mind me asking?
 
Did you need permission to rent out property. I have mine rented out past two years. hoping to get mortgage approval myself at the moment, broker says should not be a problem but in the past I have faced difficulty getting mortgage approval because I could not get permission to lease out from council. I could not care less anymore whether I need permission or not as I need to move on with my familys future but the banks before have asked for it. That was 3 years ago, have they eased off on this.
 
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