Query Re Shared Ownership

ghostchild

Hi

I hope someone can help on this.

I took out a shared ownership loan with my local authority in 2006. I got a letter from them lately telling me how much i owe in equity on the house and reminding me that i need to buy out my remaining share.

I have mortgaged 45% and rental equity is 55%. They are saying I owe them over a €1000 more in equity than I originally did even though I have paid them the correct amount every month since the end of 2006.

I'm just wondering how I stand. I mean how could I owe more than when i started paying off and should the equity not be respective of the value of the property? The house was valued at €280,000 but I was lucky to be entitled to the affordable housing sheme which meant I purchased it for €186,000. But as everyone knows house prices have hit the floor and its valued at round €160,000 now. I don't have any savings and as you can only get 80% of a mortgage and the house is in negative equity i don't know how i will ever be able to buy out the equity share.

Any advice would be greatly appreciated.

ladyeaston

Hi how are you getting on with the shared ownership, any pointers

ladyeaston

ghostchild wrote: »

Hi

I hope someone can help on this.

I took out a shared ownership loan with my local authority in 2006. I got a letter from them lately telling me how much i owe in equity on the house and reminding me that i need to buy out my remaining share.

I have mortgaged 45% and rental equity is 55%. They are saying I owe them over a €1000 more in equity than I originally did even though I have paid them the correct amount every month since the end of 2006.

I'm just wondering how I stand. I mean how could I owe more than when i started paying off and should the equity not be respective of the value of the property? The house was valued at €280,000 but I was lucky to be entitled to the affordable housing sheme which meant I purchased it for €186,000. But as everyone knows house prices have hit the floor and its valued at round €160,000 now. I don't have any savings and as you can only get 80% of a mortgage and the house is in negative equity i don't know how i will ever be able to buy out the equity share.

Any advice would be greatly appreciated.

hi can you contact me please with a view to sorting out this problem,

nuac

YOu have 25 years from 2006 to buy out the Council's equity.

By that time LA housing schemes may have been regionalised and there maybe a special offer to buy out whoever your landlord will be then.

The Shared Ownership scheme was very cumbersome, lifted from UK. The ideas was to allow Rent Subsidy be claimed.

ladyeaston

nuac wrote: »

YOu have 25 years from 2006 to buy out the Council's equity.

By that time LA housing schemes may have been regionalised and there maybe a special offer to buy out whoever your landlord will be then.

The Shared Ownership scheme was very cumbersome, lifted from UK. The ideas was to allow Rent Subsidy be claimed.

Thanks for that and from what I heard, shared ownership is now stopped by the LA , the problem is I only got 19 years to pay off mine and because I work I dont get any subsidy, I am now thinking I might be better of doing nothing just save very hard and pay as much off as i can.

Thanks again

Beth 2010

ghostchild wrote: »

Hi

I hope someone can help on this.

I took out a shared ownership loan with my local authority in 2006. I got a letter from them lately telling me how much i owe in equity on the house and reminding me that i need to buy out my remaining share.

I have mortgaged 45% and rental equity is 55%. They are saying I owe them over a €1000 more in equity than I originally did even though I have paid them the correct amount every month since the end of 2006.

I'm just wondering how I stand. I mean how could I owe more than when i started paying off and should the equity not be respective of the value of the property? The house was valued at €280,000 but I was lucky to be entitled to the affordable housing sheme which meant I purchased it for €186,000. But as everyone knows house prices have hit the floor and its valued at round €160,000 now. I don't have any savings and as you can only get 80% of a mortgage and the house is in negative equity i don't know how i will ever be able to buy out the equity share.

Any advice would be greatly appreciated.

Hi I bought my house by shared ownership also.

You seem to be a bit confused about things though. The council own the superior interest in your home which is registered on a freehold folio in the land registry (55%). They granted you a shared ownership lease for a term of 99 years which is registered as a burden on their freehold folio . This leasehold is the part you own (45%) . They also granted you a mortgage and this is registed as a burden against your leasehold folio and you pay this every month. You also pay a rent each month to the council on their equity. Each year the council re-evaluates how much the value of their portion of the house and adjusts the rent accordingly.

Even though you are paying your mortgage every month this money is only reducing the money that is owed against the 45% equity. It is not possible for you to reduce the councils equity by paying your mortgage.

Have you gotten redemption figures from the council? Is it possible for you to get a mortgage to buy out both your mortgage and their equity. That's what I had to do and I also ended up paying more than I borrowed in the first place. It's not a great deal and it was only intended for people to use it as a first step on the housing ladder

Hope it's a bit clearer for you

ladyeaston

hi I am so confused need to chat to you and more people who can come together and see what we can do to make all our lives a bit better, do you know more people with our problem, email me please i will send it in private,

ladyeaston

i am to old for a loan as i would have to get a loan of 100 just to get the co, co, share out of my hair , i am getting more confused by the min.

Beth 2010

ladyeaston wrote: »

i am to old for a loan as i would have to get a loan of 100 just to get the co, co, share out of my hair , i am getting more confused by the min.

Hey I bought mine out two years after I got the house.

You should call the local authority and clarify the things you don't understand. They are always there to explain things for you. What local authority are you with

ladyeaston

Beth 2010 wrote: »

Hey I bought mine out two years after I got the house.

You should call the local authority and clarify the things you don't understand. They are always there to explain things for you. What local authority are you with

Hi how did you manage to buy you home out as i am in mine six years and right now i am 56 and would never get a loan to buy them out

Regards

ladyeaston

nuac wrote: »

YOu have 25 years from 2006 to buy out the Council's equity.

By that time LA housing schemes may have been regionalised and there maybe a special offer to buy out whoever your landlord will be then.

The Shared Ownership scheme was very cumbersome, lifted from UK. The ideas was to allow Rent Subsidy be claimed.

Not everyone has 25 years i only got 19 because of my age and no one will give me a loan plus i am not getting any allowance the onnly thing i can think of is to try and get the council give me an anunity loan

schemingbohemia

You might get more information here in the accommodation and property forum

http://www.boards.ie/vbulletin/forumdisplay.php?f=38

What have the council said to you? Have you gone into them? Have you gone to a solicitor that might have experience in this area or your local citizens information centre or Free Legal Aid Centre?

www.citizensinformation.ie

www.flac.ie