Yes but do you agree the 2
It is not a question of agreeing, you will have to provide details of income, and all other assetts, you will then be assessed and told what your contribution will be. If you don’t agree with the financial assessment you have the right to appeal.
You are assessed on your home, your income and all other assets.
If part of a couple you are assessed on half the home, income and all other assets.
The first €36k is disregarded from the assessment if single, or €72k if part of a couple.
You are assessed on the home for the first 3 years only.
For years 1, 2 & 3 you pay the amount assessed on the home as well as the amount assessed on income and all other assets. If you don’t want to or can’t afford the amount assessed on the home you can defer this part of your contribution by availing of the loan. You still pay the amount assessed on income, and all other assets, this part of your payment cannot be deferred and must be paid weekly / monthly.
After year 3, you pay weekly / monthly the amount assessed on income and all other assets, but not the home.
A single applicant who availed of the loan and died after 1 year would owe the state 7.5% of the house value only, not the estate value which could be substantially more. After 2 years 15%, and 22.5% capped after 3 years.
An applicant who did not avail of the loan and paid the assessed amount on the home would owe the state nothing, regardless of when they die, year 1, 2, 10 or more.
A good Fair Deal calculator and other info can be found here;
http://myfairdeal.ie/?page_id=82
Agreed but is the 22.5% calculated on the valuation of the house when entering the scheme ( my understanding) or on the valuation of the property on death ( assuming it's not sold in the meantime).?
It is on the house valuation submitted when entering the scheme as long as the current valuation is reasonably in line with property price inflation over the years.
One of my relatives availed of the loan and lived for 6 years, the home valuation submitted on death was substantially higher than the valuation submitted when entering Fair Deal but was in line with property price inflation for the relevant years.
The amount requested for repayment was 22.5% of the substantially lower initial valuation plus an amount when they adjusted the loan amount with the consumer price index.