A
AffordableJB
Guest
Re: Re-mortagaging an affordable house
Thanks to all for feedback. 'shanegl' is correct, the clawback is based on the current market price of the property at time of sale or re-mortgage. The only thing that is agreed and set in stone is the %; mine was 17.05% discount so I have to repay 17.05% on the current value of the property. I have already submitted a request for redemption and the figure received was inclusive of a 17.05% clawback based on a valuation submitted with my request. My clawback is definitely for 20 years with reduction of a certain % after 10 years. Vanilla, I wish your point was true in my case that (for clients you are working with now) "It then decreases each year by 10%, so if you hold on to it for 10 years there is no clawback". Were any of your clients with Dublin City Council? I was of the impression that all local authorities were bound by the same rules but I may be wrong. I'm not sure of your point 'Abbeykiller' but I am not trying to pay the debt off to avoid paying the clawback as this is simply not possible; no matter what route I choose, the clawback is and will remain payable until the 20 years are expired. I know some a lot of you think it is a bit crazy to repay the clawback just to remortgage but unfortunately I have no option. I did not do SSIA so I need to do this in order to release equity on my home for home improvement purposes. Furthermore, I will have a lot more flexibility if I move from the council to a bank in terms of future equity release etc etc. I was of the impression that I could move my mortgage from DCC to certain banks, BOI, IIB and EBS, (with the clawback moving to the bank) but apparently this is not the case. See BOI's website for example under the 'Mortgages' section - search for 'affordable'. They say that they will not accept a transfer of an affordable housing mortgages that are already being paid to a local authority; I am going to check with EBS tho. I did my deal over three years ago now so it seems that the rules have changed since then; lot more flexibility with the scheme now. I could wait for a while and see if these legal issues between the lenders and the local authorities are resolved but who knows, it could take years! Where does that leave me and so many others in the meantime?! I would love to keep the property as is for the 20 years and not repay the clawback but that's not going to happen. I for sure am not going to stay in a 2 bed apt for the next 20 years so I am bound to sell it before then in order to upgrade to a bigger house at which point the clawback would be payable anyway (and a lot more considering it will be based on the current value of the property at the time of sale!!). The local authorities and the govt have this whole scheme wrapped up so whatever you do, you will get hit somehow whilst they make a huge profit.
Thanks to all for feedback. 'shanegl' is correct, the clawback is based on the current market price of the property at time of sale or re-mortgage. The only thing that is agreed and set in stone is the %; mine was 17.05% discount so I have to repay 17.05% on the current value of the property. I have already submitted a request for redemption and the figure received was inclusive of a 17.05% clawback based on a valuation submitted with my request. My clawback is definitely for 20 years with reduction of a certain % after 10 years. Vanilla, I wish your point was true in my case that (for clients you are working with now) "It then decreases each year by 10%, so if you hold on to it for 10 years there is no clawback". Were any of your clients with Dublin City Council? I was of the impression that all local authorities were bound by the same rules but I may be wrong. I'm not sure of your point 'Abbeykiller' but I am not trying to pay the debt off to avoid paying the clawback as this is simply not possible; no matter what route I choose, the clawback is and will remain payable until the 20 years are expired. I know some a lot of you think it is a bit crazy to repay the clawback just to remortgage but unfortunately I have no option. I did not do SSIA so I need to do this in order to release equity on my home for home improvement purposes. Furthermore, I will have a lot more flexibility if I move from the council to a bank in terms of future equity release etc etc. I was of the impression that I could move my mortgage from DCC to certain banks, BOI, IIB and EBS, (with the clawback moving to the bank) but apparently this is not the case. See BOI's website for example under the 'Mortgages' section - search for 'affordable'. They say that they will not accept a transfer of an affordable housing mortgages that are already being paid to a local authority; I am going to check with EBS tho. I did my deal over three years ago now so it seems that the rules have changed since then; lot more flexibility with the scheme now. I could wait for a while and see if these legal issues between the lenders and the local authorities are resolved but who knows, it could take years! Where does that leave me and so many others in the meantime?! I would love to keep the property as is for the 20 years and not repay the clawback but that's not going to happen. I for sure am not going to stay in a 2 bed apt for the next 20 years so I am bound to sell it before then in order to upgrade to a bigger house at which point the clawback would be payable anyway (and a lot more considering it will be based on the current value of the property at the time of sale!!). The local authorities and the govt have this whole scheme wrapped up so whatever you do, you will get hit somehow whilst they make a huge profit.
