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Shared ownership scheme.

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  • 20-09-2011 12:12pm
    #1
    Betty-ireland
    Registered Users Posts: 97 ✭✭


    Is this option still a possibility with the councils? What way does the whole thing work with income, deposits etc.
    We're currently renting a council house but we've always wanted to buy. There's a house going where we were renting before we moved here, iit's quite cheap actually but as DH only works part time a mortgage is out of the question.


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    #2
    donalg1
    Closed Accounts Posts: 3,513 ✭✭✭donalg1


    Hi Betty, if a mortgage is out of the question then so is shared ownership as this is a mortgage also just a smaller mortgage than buying it outright as you take a mortgage on say 60% and then rent the other 40% from the Council with it having to be paid off within 25years.

    If you are a tenant of the Council's then the Tenant Purchase Scheme would be your best bet, now if you dont want to buy your current house the Incremental Purchase Scheme has either been introduced is due to be introduced soon, which basically works similiar to the Tenant Purchase Scheme only instead of buying your current house you are given the option to buy a new house in a different area.

    However you are still going to need a mortgage whichever way you go about buying a house, the Council's criteria differs from a bank as far as i know in that the main earner needs to be in full time employment for at least two years, with the sub earner then in employment for at least 1 year, so you might get past this with one in full time for 2years and the other on part time. Levels of deposit vary also, for the current Tenant Purchase scheme i dont think a deposit is required due to the reduction on the purchase price you would receive for the amount of time you have lived there.

    Best thing to do though is to phone the loans section of the Local Authority you are a tenant with, but first you will need two mortgage refusals from banks before you can apply to your local authority for a mortgage. But just phone them anyway and see what they say.


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