What's incremental purchase? replaced shared ownership

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dubinamerica

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Hi does anyone have any info on the incremental tenant purchase scheme? It replaced shared ownership I think. Does it have to be for a new build? What options are available to purchase a house that a tenant is currently living in? Do you have to pay/get mortgage for full amount?
 
Incremental purchase scheme is only for new build houses, which are designated as such by the local authority. The current tenant purchase scheme in operation is the 1995 tenant purchase scheme which is due to wind up at the end of 2012, with a further 6 months for the sale to be completed. A new scheme which will be based on the incremental purchase model (but for existing as well as new houses) will come into operation during 2013. Your local authority should be able to give you information on the terms of the current tenant purchase scheme
 
Great thank you. I am trying to sort out a lot of stuff as I am falling behind on mortgage payments on the family home. I may have to sell this as part of a settlement for a legal separation.. complete nightmare. Anyhow, my mum got a valuation on her county council property and would receive 30% discount. I won't be in a posn to sell family home for a while as will need consent from ex or to go to court, but purchasing her house down the road may be an option. I wouldn't have the full amount though from my own house sale and am worried the council will pull the plug on the discount altogether.
Anyone know more info on the future tenant purchase scheme or what's expected?
 
Grand, thanks for posting that. I wonder then whether the discounts would be much less? My mum is entitled to 30% discount now and a grant as well.. If the new scheme comes through sounds like it will be based on income and that there's some possible clawback if there's a resale.. Does that sound about right?

"new scheme will be a discount scheme based on household income that enables the State to share in the profits from resale during the 20 to 30 year period for which the house is subject to an incremental purchase charge."
 
Hi, found this on Fingal website about the Incremental purchase scheme (for now only covers new houses.. )
Under the scheme, depending on the income of the applicant, equity of 40%, 50% or 60% is acquired in the allocated property. The Council retains equity in the property which reduces by 2% per annum over a 30, 25 or 20 year period. If the applicant sells the property during this period a sum of money based on the Council’s equity must be paid to the Council.
so does that mean say for a house valued at 185K , purchaser acquires say 60% of property at 111K ? or 40% at 74K and counciil owns remaining percentage which reduces by 2% every year. Does tenant have to repay mortage AND also pay rent for the portion that the council holds onto?
Under existing Tenant Purchase Scheme say a house values at 185K.. gets 30% discount and a grant so bring price to approx 125, and council has no interest in property after sale.
Trying to get my head around possible options, but seems to be so many variables at the minute. Anyone additional thoughts or advice appreciated : )
 
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