remortgage possible with affordable housing?

Discussion in 'Affordable housing and shared ownership' started by carrighead, 9 Jun 2011.

  1. manunited

    manunited Registered User

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    Silly question i'm sure but has there been any movement on this legislation being enacted so that we would have the option to remortgage? Thanks
     
  2. Tired Paul

    Tired Paul Frequent Poster

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    Latest update I've had (last week) was from the office of Jan O'Sullivan (Minsiter for Housing). It seems that Autumn this year there will be an overhaul of the legislation. But I couldn't get any finer details from them.
     
  3. manunited

    manunited Registered User

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    Thanks Tired Paul,hopefully it'll happen then..feels like we've been waiting forever!
     
  4. Tired Paul

    Tired Paul Frequent Poster

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    Can't happen quick enough.
     
  5. Society

    Society Frequent Poster

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    Can I resurrect this thread and ask has anyone been successful recently in remortgaging with a bank where their loan is with the council and discharging the clawback to get rid of the council? I could be wrong but the legislation does seem to support a triggering of the clawback with a remortgage however the council are saying it can only be triggered with a sale.
     
  6. passat01

    passat01 Registered User

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    I realize that it has been over 3 years since the last post and 5 years since the legislation change question was posed......but....
    Did the overhaul of the legislation ever get completed?
    Can AH owners who bought pre 2010 now re-mortgage without triggering the clawback?
     
  7. dshakey

    dshakey Frequent Poster

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    Like above reader. Its old post. But has anyone been successful getting a remortgage on an A/ah house
     
  8. renter45

    renter45 Frequent Poster

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    Is your mortgage with a bank or council? If its with bank no other bank will want the mortgage due to the county council having a charge on the mortgage. If its with county council, are their rates not cheaper then banks??
     
  9. dshakey

    dshakey Frequent Poster

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    Been looking into it further. You can remortgage but. He council want to become 1st priority in the charge order and bank then becomes 2nd.

    No bank will agree to be second and let council get thier cut first.

    So basic means we can not remortgage.
     
  10. MrsMoo

    MrsMoo New Member

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    Hi, these changes were brought in under the 2009 Housing Act. I can't post links but if you look at section 88 (6) (b) (i) and (ii).

    The staff in the council might not know it but these sections grant them the power to consent to the new mortgage having priority over their charging order. You should raise it with them quoting these sections. They don't have to consent though, if you're remortgaging to buy a new jeep and taking the kids to Disneyland they might say no. If you're remortgaging to get a better rate or extend your home for a growing family they might consider it under those sections quoted above.
     
  11. Brooklyn

    Brooklyn Frequent Poster

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    This Section was only commenced in June of this year so I'd say it's highly likely the staff in the Council have never come across it yet!
     
  12. MrsMoo

    MrsMoo New Member

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    Yes, I'm new to this site and I couldn't edit when I realised it was only commenced in June of this year. Anyways the legislation is in force now so owners of affordable apartments can now remortgage!
     
    dshakey and Brooklyn like this.
  13. dshakey

    dshakey Frequent Poster

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    Last edited: 28 Dec 2018
  14. dshakey

    dshakey Frequent Poster

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    Last edited: 28 Dec 2018
    Reading this act is confusing.. council have agreed to a remortgage. But they want to be first priority and bank the second..
    To me the below reads the council will have the first charge and bank will be second and this same message I've gotten from the council. So still in same position that can not remortgage..

    Ahousing authority may, subject to subsection (6), enter into an agreement with a holder of a licence under the Central Bank Act 1971 , a building society or other financial institution that a charge proposed to be created by it by a charging order shall have a priority, as against a mortgage or charge proposed to be created in favour of that holder, society or institution, that is different from the priority the charge would otherwise have if this subsection had not been enacted.
     
    Last edited: 28 Dec 2018
  15. MrsMoo

    MrsMoo New Member

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    Sorry the relevant subsections are:

    88 (5) A housing authority may, subject to subsection (6), enter into an agreement with a holder of a licence under the Central Bank Act 1971 , a building society or other financial institution that a charge proposed to be created by it by a charging order shall have a priority, as against a mortgage or charge proposed to be created in favour of that holder, society or institution, that is different from the priority the charge would otherwise have if this subsection had not been enacted.
    88 (6) A housing authority may only enter into an agreement referred to in subsection (5) if it considers that the agreement will—

    (b) enable a purchaser— (i) to refinance
    an existing advance of moneys from the holder, society or institution referred to in subsection (5), or (ii) to obtain a further advance of moneys from the holder, society or institution referred to in subsection (5), for any purpose.

    88(5) basically says that a local authority may agree to let a banks charge have priority over their charging order - they already did this when you originally purchased this property.

    88(6)(b)i and ii allow a local authority to do this in the case of a remortgage with the original bank or in the case of a refinance with another bank.

    Until this section was enacted in June of this year it wasn't possible for a local authority to do this. If you have a solicitor acting for you talk to them about this.
     
  16. dshakey

    dshakey Frequent Poster

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    Thanks mrsmoo. Will bring this to the council's attention.