Have an affordable property, but buying a New House ??

B

BillyPiper

Registered User
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Hi all,

Ok, not sure of my options here everyone. So please help me understand where I am at in this situation.

I have had an affordable apartment for 3 years (not shared ownership). I am about to get married next year, and then plan on having kids. The apartment really is not big enough for a family, so me and my partner will need to buy somewhere new (i.e. House). I know I am meant to live in this apartment for 20 years, but what are my real options here with the way things are now ??? Ideally I would not like to sell the apartment if I could rent it out for example. Maybe selling is the only option ?

Has anyone successfully purchased another property while owning an affordable property ?

What type of mortgage did you have to get ?
I presume if it was possible it would have been purchased as an investment property ?

I would be splitting my half with my partner and she would be buying as a first time buyer, mine would be presumably investment mortgage.

Ok, so there it is: any pointers, tips or experience people have had in this situation would be fantastic to share !!

Thanks a million
Billy
 
My understanding is that if you get permission to rent it out the council will extend the clawback for the number of years that you rent it. You will always owe clawback if you don't live there.
 
Thanks Cheeus... So can you actually get permission from council to purchase another property then ?
 
Buy yer new property, and dont say anything to the council.
Am sure they will be happy once the mortgage is paid.
The chances are, you are well into negetive equity with it, even though you got it under the affordable housing scheme.
 
your biggest problem will be convincing a bank to give you another mortgage on top of your existing one , i am thinking of doing this also but will be a whlie before i can save up for the deposit for another house........ waiting to see how bad the budget will affect me also, personally speaking i would sell the AH and start again assuming its not in negative equity.... good luck with it
 
Thanks for the replies all
The main question still stands however.

Has anyone out there actually done this yet ???
If there is your experience and information is most valuable.
Please share if you have been through or have started this process ;)

Thanks a million
Billy
 
BillyPiper said:
I presume if it was possible it would have been purchased as an investment property ?

I would be splitting my half with my partner and she would be buying as a first time buyer, mine would be presumably investment mortgage.
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Not sure what you are trying to say here. You cannot get two seperate mortages on one property. It would have to be a joint mortgage. And thus your partner would not be able to avail of first time buyer status
 
peteb said:
Not sure what you are trying to say here. You cannot get two seperate mortages on one property. It would have to be a joint mortgage. And thus your partner would not be able to avail of first time buyer status
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Hmmmmm actually i never knew that.. you cannot split a mortgage like that ?
1 person inputting as an investment?
Next utilizing first time buyer ?

Thanks for clarification
 
Hey,

Bad news I'm afraid :(

To qualify for the relief the entirety of the purchase monies, including any borrowings, must be provided by the first time buyer. Any person, who provides part of the purchase monies or who is a party to any borrowings relating to such purchase, is also regarded as a buyer of the house and the relief will not be available unless that other person is also a first time buyer.
Click to expand...

[broken link removed]

I've been looking into this myself :(
 
Hi Ariidae,

But thats only for stamp duty. What about simply just getting a mortgage ?
Will a Bank split like that i.e.
1st half == first time buyer
2nd half == already owner of an affordable property (non first time buyer), and then most likely investment property.

So stamp duty is out in this scenario, but
1) Will bank allow it ?
2) wasnt thinking about this, but will first time buyer half be allowed mortgage tax relief ?

Thanks again
Billy
 
As peteb said, you can't have two mortgages on one property.

Banks require that all mortgages are asset backed. So that the one (or several for developers) property folio is linked to the one mortgage. In the case of someone defaulting on the mortgage, the property can then be sold. In the split mortgage scenario that you envisage, say one of you defaults on your mortgage, how would the bank sell one kitchen and one bedroom and not the other two bedrooms?

Perhaps .. and I don't know, but perhaps if you bought a property that could be split into two property folios?? Then you might be able to just get the legals involved.

Regarding interest relief .. the same definition of first time buyer applies. If you and OH buy a property with monies/loan you both provide then the property will not get first time buyer interest relief or first time no stamp duty status.

Interest relief is given to non first time buyers though .. as long as it is your main residence.

http://www.citizensinformation.ie/e...e/buying_a_home/mortgage_interest_relief.html
 
Thanks all for responses, much appreciated

Has anyone out there actually managed to buy a second house, while owning an affordable property ?

Thanks again
 
BillyPiper
I'm in the same position as you (thereabouts). There are 4 of us in a onebed A/H. The apartment is mine (not me and my girlfriend). We moved out and am renting a house for one year to see what to do. The apt is vacant. I had to do it for my sanity. I could technically sell it to my girlfriend (this is th ONLY way to remove the clawback ie. selling). Walking in with a cheque to pay the balance will still not remove the clawback from the title deeds! Can you believe that!

Tevion is right, dont tell them anything, its none of their business and your doing nothing wrong. The only thing is that for TRS purposes and A/H rules, your A/H would need remain your PPR. If you want to buy 2/3 houses, thats your business (as long as you are given credit ;) )
Dont let the A/H unit stop you from living. Its complex with zero flexibility. Although a good scheme at the time it will turn into a total mare if your personal circumstances change like yours and mine or if you got a raw deal on the location and your area is bad. Unfortunately, there is zero flexiblitiy in this scheme. The council wont help you. At least if your lender was a bank you could go in and get some answers as they are private. The semistaters are horrific to deal with.

Dont expect any real help from the council if you are looking to; remortgage/switch lenders or sell your A/H unit.
My house lease is up and am returning back to my apartment (Dreading it!) as the finances dictate. I was going to buy a house but you have to be out of your mind to even consider something like that these days. I might just rent again for the next year and see how things pan out.

I would also like to know if anyone has managed to buy a house while having an exiting A/H.
 
Simple solution if your GF can get a mortgage.
If the bank will give yer GF a mortgage on her own with whatever savings both of you have, she can buy the new place.
The appt remains yours and is your PPR, rent it out for some extra cash.
The new place belongs to yer GF, and you just stay there with her.
Dont bother telling the council anything, its none of their business and they wont care anyway as long as mortgage is being paid.
 
tevion said:
Dont bother telling the council anything, its none of their business and they wont care anyway as long as mortgage is being paid.
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Is this true though? If you can't sell (as it's neg equity for example) can you rent your AH out without being 'found out' and penalised in some way?
 
simon1 said:
Is this true though? If you can't sell (as it's neg equity for example) can you rent your AH out without being 'found out' and penalised in some way?
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I know one or two people that are, and seem to be getting on fine.
Cant be fined for it, they dont have any provision for that, and it would be illegal.
Its public servants we are talking about, they are not going to go out of their way looking for people whos situation has changed a bit, unless it is brought to their attention and is causing them a problem.
 
I'd be a bit slow to say it's none of the council's business. I doubt they will care if you rent it out at the moment, if you're in negative equity what other choice do you have?

However, if in a few years time property prices have gone up again and it's worth more than the price you paid, the council can add extra years onto the clawback period for the years that you haven't lived there.

This shouldn't be of too much concern, you'd still get back what you paid if you sell for above what you paid, just be aware that the council will have an interest still and the years you rent it out can extend the clawback period.

As for asking if anyone has done it yet, the situation would be the same as for anyone trying to buy a second property while retaining the first. All the bank will care about is your ability to pay two mortgages.
 
Hey,

If your planning on renting it out be sure to have sound neighbors!!!!

I'm trying to get confo fro the CO Co about re-mortgaging & buying them out but it can't be done. I was having a chat with them about all the ins & out of the contract & have been told that as it is government legislation they can do nothing for me.

In conversation they told me that are currently bringing a girl to court as they found out she was renting the house out & living with her boyfriend. I'm sure it will have some tax implications for her as she wasn't declaring her earning on the house to the tax man.

I was under the impression if you sold the house & your mortgage cleared that the Co Co would get 100% of the money once the mortgage was cleared. From reading the comments I bought my house for €151,000 and have €130,000 left. If I sold it for €140,000 could I hold onto the €10,000 & the Co Co wouldn't be entitled to it as my house was purchased for €151,000????
 
Ennis said:
Hey,

If your planning on renting it out be sure to have sound neighbors!!!!

I'm trying to get confo fro the CO Co about re-mortgaging & buying them out but it can't be done. I was having a chat with them about all the ins & out of the contract & have been told that as it is government legislation they can do nothing for me.

In conversation they told me that are currently bringing a girl to court as they found out she was renting the house out & living with her boyfriend. I'm sure it will have some tax implications for her as she wasn't declaring her earning on the house to the tax man.

I was under the impression if you sold the house & your mortgage cleared that the Co Co would get 100% of the money once the mortgage was cleared. From reading the comments I bought my house for €151,000 and have €130,000 left. If I sold it for €140,000 could I hold onto the €10,000 & the Co Co wouldn't be entitled to it as my house was purchased for €151,000????
Click to expand...


ok times have changed...
no first time buyer exemption anymore. Affordable housing scheme axed... e.t.c

THE QUESTION IS ..

HAS ANYONE WHO ACTUALLY OWNS AN AFFORDABLE HOUSING PROPERTY ACTUALLY BOUGHT A SECOND PROPERTY ??

PLEASE SHARE if this is possible

Thank you ;)
 
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