Thinking of Switching to 100% mortgage with DCC from Share ownership

texas star

Hi just wondering if anyone has done this and whats the disadvantages and advantages. DCC are sending out someone to do a market value of the house.Are they realistic valuations?Any other advise would be great.Thanks;)

listermint

What makes you think they wont be realistic?

Be more informed yourself and check out this for propertys in your area

http://www.propertypriceregister.ie/

texas star

Thanks yeah Ive done that already just wondering if it goes by square footage or do they come in and say oh new bathroom that adds value and stuff like that?

Skipper12

Is it not based on the original amount that you were renting from them?

Fro example if the shared ownership part was €30,000 of the value of the house is it not still €30,000 that is required to buy them out regardless of rises or falls in the overall price of the property?

texas star

To be honest Im not sure.

ted1

It's as skipper said, value based on original price. They own 50% you own 50% they won't sell there's for less, how long have you owned it for after 10 years its a sliding scale so by year 20 you own it outright

texas star

Im here 6 years in Finglas 3 bed house its perfect and if i had my way probably like everyone pick it up and put in Glasnevin(not trying to be posh) folks live there and where i was reared and DCC are now trying to push 100% mortgage probably off there books and they said at least its 100% so its not paying off just the rental part.I did the mortgage for 25 yrs and if i go 100% it will go to 29 yrs :mad:

donegal.

ted1 wrote: »

It's as skipper said, value based on original price. They own 50% you own 50% they won't sell there's for less, how long have you owned it for after 10 years its a sliding scale so by year 20 you own it outright

are you sure about that?
i thought 20 years was the max amount of time you had to buy the CC's half of the house. But you still had to pay them the entire amount ( eg. 50% of the oringinal price)

ted1

No it's a sliding scale after 11 years if you sell you get 55% after 12 you get 60% etc till year 20 you get 100% of house

riclad

IF you look on the documents you got, when you moved in ,the house
value should be there,
say your mortgage is 50k now, 50/50 loan rent,
that means 100 Per cent morgage is 100k.
For most people its best to switch over to 100 per cent mortgage as soon as possible.AS rent payments do not reduce the mortgage.
You switch to 100 per cent mortgage, your rent payment is zero.
THE council should have sent out letters , after 4 years,after loan start,
SWITCH OVER to 100 percent mortgage, ie you are saving nothing by paying rent,
you are just extending the mortgage into the future.
MY friend bought a 50/50 apartment for 80k, after year 4 she switched
over to 100 percent mortgage,
there wasn,t much difference in how much she paid per month.

The whole point of the 50 50 scheme was to help single people ,
who were on lower incomes,to get on the property ladder.
ONCE they could they should have switched over to 100 percent mortgage.
after year 5 ,the rent is just wasting money
Well a house in glasnevin is like 70k plus more than a house in finglas.

texas star

Thanks for that i will defo switch over to 100% think they said it takes about 4 months for the person to come out to do valuation.But what the point in doing a valuation if im still paying the mortgage on the house from what i signed for 6 years ago?

Dandelion6

I did it a couple years ago. The valuation turned out to be exactly the amount of my original mortgage. I found that a bit suspicious but at the time it wasn't totally unrealistic either so who knows.

leprechaunxwwwx

riclad wrote: »

IF you look on the documents you got, when you moved in ,the house
value should be there,
say your mortgage is 50k now, 50/50 loan rent,
that means 100 Per cent morgage is 100k.
For most people its best to switch over to 100 per cent mortgage as soon as possible.AS rent payments do not reduce the mortgage.
You switch to 100 per cent mortgage, your rent payment is zero.
THE council should have sent out letters , after 4 years,after loan start,
SWITCH OVER to 100 percent mortgage, ie you are saving nothing by paying rent,
you are just extending the mortgage into the future.
MY friend bought a 50/50 apartment for 80k, after year 4 she switched
over to 100 percent mortgage,
there wasn,t much difference in how much she paid per month.

The whole point of the 50 50 scheme was to help single people ,
who were on lower incomes,to get on the property ladder.
ONCE they could they should have switched over to 100 percent mortgage.
after year 5 ,the rent is just wasting money
Well a house in glasnevin is like 70k plus more than a house in finglas.

Two things
The scheme helped couples not singles only, that's neither here not there.

and the second and its a biggie. The rent is EQUITY, so it does come off the mortgage.
There is a post on another forum that goes into this in detail.

donegal.

i'm in a "shared ownership" house with donegal co.co. and the rent does not come off the mortgage.

Kelly06

The sooner you buy out the councils portion the better!

The money you are paying in rent is not going off your capital sum. I bought a property under the shared ownership in 2001. I started the process of buying it out in 2003. When the valuation was done I owed the council more for their portion than it was valued in the first place! Property is starting to rise so this could happen to you! Once I bought out the council my mortgage was cheaper than paying the rent and mortgage to the council.

Sooner the better you buy it out and also you don't have to take a council loan you can get one from any bank but there are obvious advantages for staying with the council especially depending on your age for life assurance policies etc.

For people that don't understand about shared ownership no one should stay on this agreement long term. The council own the freehold of the property and you own a 99 year lease over the property. Just look your house up on land direct and you will see two folio's for your shared ownership house. Even if you pay your mortgage for your 30 year term you will still only own the percentage you purchased in the first place I.e 60 % in my case. You would still have to pay rent to the council for the rest of your days! Buy it out and sooner the better too!