Re: Min fr Housing is looking at changing the legislation regarding the clawback.
Huh!?
Government is looking at changing the legislation regarding AH clawback.
Re: Min fr Housing is looking at changing the legislation regarding the clawback.
It is Batt O'Keefe that was pushing the issue of remortgaging without incurring the clawback for affordable housing. He was appointed Minister for Education yesterday so it follows that there will be a new minister for housing and there is no guarantee that whoever that is will have the same priorities!
It is Batt O'Keefe that was pushing the issue of remortgaging without incurring the clawback for affordable housing. He was appointed Minister for Education yesterday so it follows that there will be a new minister for housing and there is no guarantee that whoever that is will have the same priorities!
Re: Min fr Housing is looking at changing the legislation regarding the clawback.
This issue is moving towards resolution, it seems.
The Minister of Environment John Gormley has published a new Bill which will enable affordable home owners to re mortgage without triigering claw back. See Irish Times, 26 July p8.
Does anyone have access yet to this Bill? I am very interested to know how this will be implemented from a legal point of view.
Also, with the turmoil in the credit markets and recent widening in margins on tracker mortgages, is a mortgage switch attractive anymore?
current mortgage balance 110,000euro
margin above ECB 1.6% (includes obligatory mortgage insurance of 0.598%)
This issue is moving towards resolution, it seems.
The Minister of Environment John Gormley has published a new Bill which will enable affordable home owners to re mortgage without triigering claw back. See Irish Times, 26 July p8.
Does anyone have access yet to this Bill? I am very interested to know how this will be implemented from a legal point of view.
Also, with the turmoil in the credit markets and recent widening in margins on tracker mortgages, is a mortgage switch attractive anymore?
current mortgage balance 110,000euro
margin above ECB 1.6% (includes obligatory mortgage insurance of 0.598%)
Re: Min fr Housing is looking at changing the legislation regarding the clawback.
Will this negatively impact on those who actually want to remortgage and pay the clawback? Will the option to fully own your property before 20 years have passed now be gone?
I am concerned that the change in remortgaging was looked at in the end mainly because it will profit the councils - for a while they've stood to lose their maximum profit on inflated market values because people had the option to effectively "buy them out" as the market changed.
I'll be interested to see how this will be approached for those who have already bought under the old contracts.
Will this negatively impact on those who actually want to remortgage and pay the clawback? Will the option to fully own your property before 20 years have passed now be gone?
I am concerned that the change in remortgaging was looked at in the end mainly because it will profit the councils - for a while they've stood to lose their maximum profit on inflated market values because people had the option to effectively "buy them out" as the market changed.
I'll be interested to see how this will be approached for those who have already bought under the old contracts.
Re: Min fr Housing is looking at changing the legislation regarding the clawback.
As I said, I haven't seen any detail yet but I imagine that that the terms of your original purchase contract will apply - the clawback will expire after 20 years and you will be the sole benefical owner.
Yes, I saw that the recent review of affordable housing did discuss a replacement for the clawback with a more equitable deal for the taxpayer i.e obliging all future affordable home purchases to buyout the clawback when they can afford or wish to (as opposed the current scheme where one can wait 20 years and have the clawback expire)
As I said, I haven't seen any detail yet but I imagine that that the terms of your original purchase contract will apply - the clawback will expire after 20 years and you will be the sole benefical owner.
Yes, I saw that the recent review of affordable housing did discuss a replacement for the clawback with a more equitable deal for the taxpayer i.e obliging all future affordable home purchases to buyout the clawback when they can afford or wish to (as opposed the current scheme where one can wait 20 years and have the clawback expire)
Re: Min fr Housing is looking at changing the legislation regarding the clawback.
It's not just a wait of 20 years that can see you owning it outright at the moment. You can buy out anytime by remortgaging.
It's not just a wait of 20 years that can see you owning it outright at the moment. You can buy out anytime by remortgaging.
Re: Government is looking at changing the legislation regarding the clawback.
was just thinking the same had all my paperwork ready last year to remortgage through a broker until i found out that i had to pay the clawback so hopefully going to start the process again as soon as i hear bill is passed
was just thinking the same had all my paperwork ready last year to remortgage through a broker until i found out that i had to pay the clawback so hopefully going to start the process again as soon as i hear bill is passed
C
CJESSIE
Guest
Re: Government is looking at changing the legislation regarding the clawback.
The minister is hoping for the end of Sept for the legisation to be passed & if the banks are on top of things we should be able to remortgage by Jan 09.
The minister is hoping for the end of Sept for the legisation to be passed & if the banks are on top of things we should be able to remortgage by Jan 09.
Re: Government is looking at changing the legislation regarding the clawback.
That's not even vaguely possible given that the Oireachtas is on leave until the end of September. When it comes back the legislation will have to go through all stages in both houses, which typically takes at least a few weeks and often a couple months - sometimes even longer. It depends on how much pressure the government is under to get the legislation passed. Emailing your TDs (particularly the government backbenchers) would be a useful way to apply that pressure.
That's not even vaguely possible given that the Oireachtas is on leave until the end of September. When it comes back the legislation will have to go through all stages in both houses, which typically takes at least a few weeks and often a couple months - sometimes even longer. It depends on how much pressure the government is under to get the legislation passed. Emailing your TDs (particularly the government backbenchers) would be a useful way to apply that pressure.
Re: Government is looking at changing the legislation regarding the clawback.
I think the Councils will have to make some arrangment in the future to allow people with affordable houses to upsize especially if they acquired a small apt and need a house. Perhaps they will considering reducing the clawback by say 10 per cent per year of occupation or give them an option of selling the place back to the Council with a reduced clawback.
The whole scheme is very uncertain and I would encourage people to try and purchase a place privately and not get caught up with this scheme.
I think the Councils will have to make some arrangment in the future to allow people with affordable houses to upsize especially if they acquired a small apt and need a house. Perhaps they will considering reducing the clawback by say 10 per cent per year of occupation or give them an option of selling the place back to the Council with a reduced clawback.
The whole scheme is very uncertain and I would encourage people to try and purchase a place privately and not get caught up with this scheme.
Re: Government is looking at changing the legislation regarding the clawback.
I don't understand how the remortgage is going to work.
council buys house for 315,000
you buy place for 260000
clawback around 24%
house is now worth 315,000 or less....
If a person wants to remortgage then the clawback will probably increase...otherwise the government are doing themselves out of money.
It might be a different story if the house is above the price the council original bought it for but in this property climate the odds are slim.
I don't understand how the remortgage is going to work.
council buys house for 315,000
you buy place for 260000
clawback around 24%
house is now worth 315,000 or less....
If a person wants to remortgage then the clawback will probably increase...otherwise the government are doing themselves out of money.
It might be a different story if the house is above the price the council original bought it for but in this property climate the odds are slim.
Re: Government is looking at changing the legislation regarding the clawback.
yeah but my point is how can you remortgage a house if you don't own the equity in it? The council do. Unless they increase the % clawback that you owe them, inorder to give you some of the equity.
yeah but my point is how can you remortgage a house if you don't own the equity in it? The council do. Unless they increase the % clawback that you owe them, inorder to give you some of the equity.
Re: Government is looking at changing the legislation regarding the clawback.
You would only remortgage your on the % of market value that you own, not the council's.
I hope there will also be the option of remortgaging and paying the clawback. Otherwise we'll be stuck with all the restrictions for 20years.
You would only remortgage your on the % of market value that you own, not the council's.
I hope there will also be the option of remortgaging and paying the clawback. Otherwise we'll be stuck with all the restrictions for 20years.
Re: Government is looking at changing the legislation regarding the clawback.
Hi
Has a draft bill been circulated yet?
I think we should be pushing to have the option to buy out the council's interest where we wish to let the property out in order to allow us to take up work elsewhere, travel etc.
Perhaps this is something which should be raised with Batt.
Hi
Has a draft bill been circulated yet?
I think we should be pushing to have the option to buy out the council's interest where we wish to let the property out in order to allow us to take up work elsewhere, travel etc.
Perhaps this is something which should be raised with Batt.
Re: Government is looking at changing the legislation regarding the clawback.
Yeah but would this only apply if the house/unit value has gone up since buying it?
If it stays the same or decreases then there is no extra equity belonging to you......except for the 3% deposit you had to initally put down.
Yeah but would this only apply if the house/unit value has gone up since buying it?
If it stays the same or decreases then there is no extra equity belonging to you......except for the 3% deposit you had to initally put down.
Re: Government is looking at changing the legislation regarding the clawback.
Yes it should be raised with Batt, but I think not as a concession, rather because that was what people bought into orginally. The bill was released about a week ago.
http://www.greenparty.ie/en/news/latest_news/gormley_publishes_new_housing_bill
I emailed John Gormley to ask the question re retaining the right to remortgage and still pay clawback. I can't imagine that they could do away this option for those who have already purchased? Could they?
Some will want to remortgage after a few years to borrow further on the strength of what they've repaid. Others might want to remortgage just to avail of better interest rates.
Yes it should be raised with Batt, but I think not as a concession, rather because that was what people bought into orginally. The bill was released about a week ago.
http://www.greenparty.ie/en/news/latest_news/gormley_publishes_new_housing_bill
I emailed John Gormley to ask the question re retaining the right to remortgage and still pay clawback. I can't imagine that they could do away this option for those who have already purchased? Could they?
Some will want to remortgage after a few years to borrow further on the strength of what they've repaid. Others might want to remortgage just to avail of better interest rates.
Re: Government is looking at changing the legislation regarding the clawback.
I don't understand why you'd need special legislation for this. Isn't it the case that the clawback is triggered if you do any of those things, so if you want to pay the clawback you can just do them, notify the Council and wait for your bill? Or am I missing something
I don't understand why you'd need special legislation for this. Isn't it the case that the clawback is triggered if you do any of those things, so if you want to pay the clawback you can just do them, notify the Council and wait for your bill? Or am I missing something
Batt's the Education Minister now, it's Michael Finneran you want.
Re: Government is looking at changing the legislation regarding the clawback.
Agree with Brooklyn above - you get your bill from Council (i.e. redemption figures) and buy out council using the new mortgage set up with new mortgage provider...
House is then yours to do as you please!
Agree with Brooklyn above - you get your bill from Council (i.e. redemption figures) and buy out council using the new mortgage set up with new mortgage provider...
House is then yours to do as you please!