Moving From Shared Ownership to 100%

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nathan210705

Registered User
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Folks,

Has anyone transferred their shared ownership mortgage (50-50) to 100% mortgage with the council?

Currently payin approx €1k per month. €500 mortgage and €500 rent to the council.

Basically my thoughts is that why would I pay the council rent of approx €500 per month when that amount could be coming off the mortgage.

Has anyone done this already? if so, how much did your monthly repayments increase by?

Cheers...
 
Hi Nathan,

Depends how many years you had it and what % it drops, however, in the current climate, I think I would stay on the shared ownership, should anything happen, i think the council would be an easier option than the banks ?
 
Sorry - I meant that I would chnage from shared ownership to 100% mortgage with DCC. I not going to change to a bank, it'd still remain with the council.
 
Just got the application form from DCC. They want a €50 processing fee and €650 for their legal fees. Can't believe it.

It's not like I'm changing to another mortgage provider. It's staying with DCC. AH and Shared Ownership is the worst decision I ever made.

I originally got the place for €210k and it's only worth €190 now. I was tryin to move to 100% mortgage so that I could bring the loan down a bit extra each month so that I at least might be able to sell, which is what I've been trying to do for years.

DCC always have an obstacle to put in your way. I'm sick of it. It feels like a never ending story.
 
Look on the bright side Nathan.
At least you can switch to a 100% Mortgage.
I spoke to CCC about doing this and was told its not possible under their rules.
 
nathan210705 said:
Folks,

Currently payin approx €1k per month. €500 mortgage and €500 rent to the council.
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Nathan..
Are your Landlords (The council) paying half of the managment fees for their half of THEIR property?..... No?.... strange that....:confused:
 
zen said:
Are your Landlords (The council) paying half of the managment fees for their half of THEIR property?..... No?.... strange that....:confused:
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Do they have the right to sell their half of their property? Do they have the right to bring their guests into their half of their property? No? Strange that.

People need to get away from the idea that "shared ownership" means you and the Council have both equal ownership rights and equal ownership responsibilities. That is NOT what it means.
 
TBH

I think we're just gonna pay the €650 and chnage to 100% mortgage. It makes a lot more sense.

At the moment our redemption is €206k to move to 100%, no clawback as the apt. is worth less than the original AH price of €215k.

Apt. is now worth €175k, so not too bad in terms of negative equity, plus out mortgage repayments will reduce by €100 per month and we won't be paying the rental part.

Trying to think long-term...
 
Brooklyn said:
Do they have the right to sell their half of their property? Do they have the right to bring their guests into their half of their property? No? Strange that.
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Brooklyn said:
People need to get away from the idea that "shared ownership" means you and the Council have both equal ownership rights and equal ownership responsibilities. That is NOT what it means.
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I love sarcastic hypocrisy. One min you advocate AH, next min you criticise it.

Before I start, I'm 100% Annuity so shared ownership does not affect me. I'm doing this for the S/O folk

Regardless of what you or anyone esle says, I'm merely highlighting yet another aspect where the client of AH is stung by having to pay the full management fee on a property that they are partly renting.

Lets not forget the high mortgage protection insurance that you cannot switch from or never getting away from the councils clawback entitlements on ones deeds unless you SELL (not even if you remortgage, switch or not even if you FULLY redeem your loan).

As for shared ownership I understood you bought a % and RENTED a %. And whom do you rent from???? A LANDLORD. Do these people have rent books for the % they rent? Yes, I believe they do. Does their rent go up as well as down? Yes it does. If I was a landlord of a property with management fees who would have to pay it? I would, not the client so how do they get away with it?

"Do they have the right to sell their half of the property"? Good question!!! I'd say if they really wanted to they could, whats to stop them? Hand the rent book to a private investor instead... Now theres a scary notion. Bundle all the %'s of rented AH and sell on the open market as a product. But why would they, rent is not dead money if you are the reoccurring beneficiary. They cant loose!! They wont even have to make an insurance claim on their own % of the property if there was a disaster. Their client will, on HIS/HER block insurance.

Here's an interesting one. If the shared ownership client defaults on the mortgage. Who pays their fees..... the rest of the poor sods in the complex, not the council, again, despite being part owner.

Finally, no landlord has any right to enter or bring "their" guests into their clients property so I dont know what you mean here.
 
Actually, on the rental half for Shared Ownership:

Every June/July for the past 4 years DCC have raised the rental half by approx €30-€40, even when the economy was crumbling around us, and the average rent dropped, they still managed to raise the rent.

It's prob too late for me now, but, is this set in stone? do they just raise the rental half every year as a standard process?
 
zen said:
As for shared ownership I understood you bought a % and RENTED a %. And whom do you rent from???? A LANDLORD.
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Not in the classic sense if you refer to DCC as the Landlord. In the "Landlord" market, it would be them fixing up the house if something goes wrong (plumbing, electricity etc.) not so much with A.H. and S.O. you are responsible for your house regardless if you owe 50% or 99% of the property.

Do these people have rent books for the % they rent? Yes, I believe they do.
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I have Shared Ownership and never got a rent book. I signed a contract with them that I pay 50% rent on the property but that's about it. Again, this is not a Landlord situation in the classic sense.

Does their rent go up as well as down? Yes it does.
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No it doesn't. It never goes down only up. When I once inquired why my rent is going up while the rent market is dropping, they advised me that this is in the contract. Rent market can go either way and it can change by the month or quarter while with S.O. your rent goes up once a year at a fixed %.

If I was a landlord of a property with management fees who would have to pay it? I would, not the client so how do they get away with it?
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again different situation. Brooklyn is right in saying "People need to get away from the idea that "shared ownership" means you and the Council have both equal ownership rights and equal ownership responsibilities."

It's all in the contract you sign before getting the keys. Nobody forced anyone to sign it. You get a "discount" on the house under the A.H. scheme and it is up to the buyer if they chose S.O. or a normal Bank Mortgage.
 
alaskaonline said:
It's all in the contract you sign before getting the keys. Nobody forced anyone to sign it. You get a "discount" on the house under the A.H. scheme and it is up to the buyer if they chose S.O. or a normal Bank Mortgage.
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You just answered my question in relation to the rental half - thanks.

On the contract part, I agree with you. I was sooo stupid and short sighted. DCC made it seem like Shared Ownership was the only option, so I just went with it.

Normally when you buy a property, your solicitor points out the different claws, etc in the contract. It turns out that the solicitor I paid approx. €1200 for, was actually working in the interests of DCC, so therefore didn't go through this.

Obviously, I won't make this mistake again.
 
Askonline
So, you seem quite happy with your rent going up and the council not having to pay their rightful part (IMO) sharedownership part or management fees or repairs.... This is quite baffling that you are defending the status quo and dont encourage it to be challenged. So your rent can only go up and not down over the years? If so, its clear you didn't understand the contract properly either if this is the case. I'd never sign a contract if I understood it to say that.
I'm a bit perplexed by this obtuse view that people can accept that the council remain to have % ownership with zero responsibility in the case of S/O. They are the flippen landlords, classical or not, I didn't realise there were different flavours of landlordship. If you guys do have S/O why not challenge them? I would.

Nathan
THANK YOU!!!! AT LAST, SOMEONE has something worth saying. This is exactly what was happening. Your right, had the solicitor informed us properly prior to signing the contract I would have NEVER signed this. I did not go through the contract as there were people behind me, I was told to sign it whilst there in the room with the solicitor. I didnt not understand the legal jargon (hence the solicitor). I'm a medic and computer engineer, I dont use my knowledge to patronise those who dont know the things I know. People on the forum are quick to judge people with this sentence "oh its in the contract, no one forced you to sign it" as if it was in plane English so that we could understand it. Its written specifically so we cant understand it and to have one sided ambiguity that favours the drawer of the contract.

I still have my notes of that conversation with the solicitor non of them emphasise the gravity of the restrictions of this contract and that it had zero flexibility. Once bitten twice shy, we make the mistakes so our children dont.

Askonline-Brooklin. Do either of you agree with any of my points or are you both thrilled with your allocation from the council for the next 25years? If so spare a thought for those who aren't.
 
zen said:
Askonline
So, you seem quite happy with your rent going up and the council not having to pay their rightful part (IMO) sharedownership part or management fees or repairs.... This is quite baffling that you are defending the status quo and dont encourage it to be challenged. So your rent can only go up and not down over the years? If so, its clear you didn't understand the contract properly either if this is the case. I'd never sign a contract if I understood it to say that.
I'm a bit perplexed by this obtuse view that people can accept that the council remain to have % ownership with zero responsibility in the case of S/O. They are the flippen landlords, classical or not, I didn't realise there were different flavours of landlordship. If you guys do have S/O why not challenge them? I would.
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You're twisting my words and going by your post you seem to have huge issues with DCC. I remember well that they very much made it clear to me the pro and cons of a S.O. and it was my choice to go with it or not. Also they state in all their written correspondence that additionally to the DCC solicitor you can freely use your own one if you require advice, clarifications etc.
Sorry if I don't agree with you but if one thing bothers me it's when people want to blame others for their bad choices. I am no solicitor either but the sources to get the right information were not limited to me or anyone for that matter.

Also - of course I would prefer not to have a rising rent every year but what was my choice: rent with a PRTB landlord (who can put up the rent just as much as DCC or even more) or going with a fixed % with DCC? Cause the matter of the fact is, I wouldn't have gotten enough money from the bank to afford my house. A lot of people are in the same situation so you decide if you keep renting with a landlord or you rent 50% and owe the other 50% with DCC.

This is quite baffling that you are defending the status quo and dont encourage it to be challenged.
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don't know what baffles you but as said, the facts weren't hidden from anyone so now to make a fuss because your circumstances have changed and this "system" doesn't suit you anymore - to me, it's not worth wasting my energy over in "fighting" it.
 
Hi Askonline

Apologies, I didn't mean to twist your words.

I dont have a problem with S/O as I'm not S/O.

Without straying too far from what the OP was saying I think he needs to be made aware of what the consequences are. TBH its better to be 100% Annuity, this was probably the only thing I really did understand way back then when signing the contract. I do recall the soliciotor advocating going 50/50 S/O as the rent portion would be less..... I know (from experience) that rent tends to go up and very seldom down. On the other hand the interest rates can do the same but in line with the rest of Europe. The interest rates on the ECB are better regulated than landlords (and yes, I will continue to call DCC landlords).

so, the advantages of moving to Annuity will allow you to manage your finances better and when you sell you will (hopefully) have some equity as you will be paying more off the principle rather than just interest on the % of S/O that you own as for the % your renting, that money is gone, dead.(hope that makes sense!)

The only problem you will have now are the issues I do have with the scheme which is covered under differnt topics in the forum. i.e. You aint going nowhere for 25 years unless you sell.

I'm sure lots of people got great deals from A/H. What I do have a problem with is when those people pound the people who it didn't work out for. Which there are a lot of.

P.S. You are correct, I have mamoth issues with DCC. Can you show me someone who doesn't?
 
Well Zen, apart from my Bin Bills DCC never bothered me (yet - fingers crossed). :)

I agree that rent is dead money and in a long run, I will look for ways to pay DCC out of the 50% but as said before at the time and still now it financially suited me as I had no other way to get a house and I am still paying less than I did before on the open market with a rented apartment.

There was another thread on AAM recently discussing the buy-out option. I'll see if I can find it later. The monthly payments go slightly up (of what I heard) if you go 100% but you have to pay legal fees all over again...

http://www.askaboutmoney.com/showthread.php?t=129769&highlight=shared+ownership
 
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alaskaonline said:
Well Zen, apart from my Bin Bills DCC never bothered me (yet - fingers crossed). :)

I agree that rent is dead money and in a long run, I will look for ways to pay DCC out of the 50% but as said before at the time and still now it financially suited me as I had no other way to get a house and I am still paying less than I did before on the open market with a rented apartment.

There was another thread on AAM recently discussing the buy-out option. I'll see if I can find it later. The monthly payments go slightly up (of what I heard) if you go 100% but you have to pay legal fees all over again...
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Just on that point, my monthly repayments are going down by approximately €100 per month, plus I will be paying more off the principle monthly, so it's win-win for me.
 
I agree with you both, if you can go 100% do it. Its one less thing to worry about in this already complex situation.
I bought my place 5 years ago and my learning curve on buying has gone through the roof. I done the math on mortgage repayments and could only afford an AH. I would never have entertained the then going costs of houses. 3-4 times your annual salary was the guide. I saw people buying 10+times that amount just because they were comparing with equally extortionate prices thinking they were getting a good deal. I can safely say I was not a contributer to the property boom. I knew my limit.
Good luck with your efforts Nathan.
 
Hi, just want to clear something...Why people are talking about clawback in SO case?Wasn't it that council set the amount you could buy the house for? In my case 220k and i bought the house for 200k on open market...so where is the clawback?
thx
 
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