Redemption Figure

S

Star10

Registered User
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Looking for advice please. Got a redemption figure from council for apartment bought under the affordable housing. At the bottom of the letter, it states:
Section 9, subsection 3(c) of the Housing(Miscellaneous Provisions) Act 2002 States:
'Where the amount payable would reduce the proceeds of the sale(disregarding solicitor and estate agent's cost and fees) below the price actually paid, the amount payable shall be reduced to the extent necessary to avoid that result'

What does this mean exactly??? The more I read it the more confusing I find it!
 
Hi Brendan-
Clawback
Balance Outstanding on your loan= 119k
Original Market value=185k
Affordable sale price=153.5k
Current market value=75k
And then all the section 9 bit is below that.
 
Hi Star10

The condition that you refer to in the contract for sale/transfer order applies to the scenario where the AF house is sold for less than original market value BUT greater than original sale price.

Your current scenario is where the house is valued at less than the original market value AND less than the original sale price.

What is means for you is that no clawback is payable to local authority.

What redemption figure did the local authority give you?
 
Hi Juannjo, thanks for the reply-they gave me a figure of 119k...which is the same as whats left on the loan and why I became totally confused then-have no idea how they work that out???
 
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