Key Post How the clawback on Affordable Housing is calculated

This is the bit I didn't really understand

"After 10 years, the percentage you must pay back reduces by one-tenth for each full year you live in your home."

I presume that this means that if you sell in year 10, you pay back 30%

If you sell in year 11, you pay 27% ( i.e. 30% -1/10th of 30%)

A literal interpretation of "for each full year you live in your home" would mean that by the end of year 10, I have lived 10 years in my home and so the percentage would be reduced by 10/10ths.

But I presume that they mean for "for each full year in excess of ten years you live in your home".

Brendan
 
Hi Brendan,

I am hoping to put my affordable house on the market next year. I understand that I am not to make a profit on the property, but I have invested about 20k in the house, I suppose I never thought I would be selling it and have redone 3 bathrooms (tiles were lifting off floor), changed all internal doors, topped up attic insulation (missing from part of attic) installed a stove, by-passed a sitting room (had to walk through the sitting room to get to kitchen)and landscaped the back & front garden over the last 9 years since I bought it. I suppose I don't want the council profiting out of what I have invested in it which has brought the value up beyond what it would be had I not done all the work?

There is a part in the deed of transfer stating that "in calculating the amount payable, due allowance shall be made for any material improvements made by the purchaser, and any such allowance shall be deducted from the proceeds of sale before the amount so,payable is calculated"

In this paragraph "material improvements" means improvements made to the house (whether for the purpose of extending, enlarging, repairing or converting the house) but does not include decoration or improvements carried out on the land including the construction of a house.

Do you think I am entitled to stake a claim against the clawback for these works carried out?

Your advice or anyone's in a similar position would be greatly appreciated
 
I wouldn't have an idea.

They sound like decorative works which would not be reflected fully in the value of the house. Most money spent like that is not recovered in the ordinary sales of houses.

The only way to know is to ask the council.

Brendan
 
Brendan- are you confident that example 2 is right where the sale price is 210k basically lower than original market value. Would you not just have to pay a % of the profit seems odd that in the other 2 scenarios the profit is split between owner and council. But in this one all profit goes to council.

I own my affordable house 10 yr bought for 170 valued at 310k I may get 180k if I’m lucky right now but in reality if I wanted to sell quick I could let it go for 170 clear my mortgage as won’t get any part of the 10k anyways.

Even if I keep for another 5 yrs and it goes to 250k you r saying I get nothing on top of the 170k. I either have to keep for 20 years or wait till it goes over 310 which won’t be in my lifetime...
 

Based on those figures your clawback is circa 45%?? You should check your documentation from the council and come back with firm figures. BTW the simple way of looking at it is anything over €170k goes to the council, so if you sell you have €170k to clear your mortgage & keep whats left over.
 
If you sell your AH property for less than the original value,but more than the discounted price,all the profit goes to the council.
But...does the rule about paying 10% less per year after year 10 come into play at all?
 
Hi there just wondering how u got on did u get any concession for your Investment?
 
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