Affordable Housing clawback

ladyjuicy08

I bought my 2 bedroom apartment in 2010 under the affordable housing scheme in 2010 it was valued at €195000 I purchased it from council for €174000 I've seen similar apartment selling for €250000 in same area.How much is the clawback I would have to pay the council??

Irish-Lass

Were you not given a copy of documents when you closed showing the amount of clawback that would be expected after a certain number of years.

I know when I did them for SDCC that all new purchasers were issued with a copy of the documents.

You could just ring the Law Department of which County Council it is and ask them

ladyjuicy08

Irish-Lass wrote: »

Were you not given a copy of documents when you closed showing the amount of clawback that would be expected after a certain number of years.

I know when I did them for SDCC that all new purchasers were issued with a copy of the documents.

You could just ring the Law Department of which County Council it is and ask them

Can't remember but I'll go thru my files and check

surrender monkey

The claw back will be huge here. You will pay over all the money you achieve over the original sale price to the Council. If you pay 175,000 originally and sell for 250,000 the claw back will be 75,000. Far better to stay on for another few years if you can. This is because the claw back percentage reduces incrementally after the 10th year until it is 0% after 20 years have passed.

Graham

Talk to the council and ask them.

I understand with some schemes that anything above the original value (€195k in your example) may only be subject to a % clawback on the amount over €195k.

*Small Print
Loose understanding, if memory serves me correctly, your mileage may vary, check with your local council and take proper qualified advice cos I might have this completely ar*eways.

ted1

surrender monkey wrote: »

The claw back will be huge here. You will pay over all the money you achieve over the original sale price to the Council. If you pay 175,000 originally and sell for 250,000 the claw back will be 75,000. Far better to stay on for another few years if you can. This is because the claw back percentage reduces incrementally after the 10th year until it is 0% after 20 years have passed.

I don’t think that’s right, isn’t it percentage based. So if he got a house for 150 valued at 200 and sells for 300 he’ll get 300*.75=225.

surrender monkey

I don’t think that’s right, isn’t it percentage based. So if he got a house for 150 valued at 200 and sells for 300 he’ll get 300*.75=225.

Unfortunately not, a family member just had to pay the Council 38 grand for the privilege. Which was every penny achieved over the original purchase price. The property was sold at the start of year 9. If you wait a few years you won't pay as much. That said all councils are different, if you want to enquire as to the position in your council then the housing Loan Accounts section usually do the sums on the claw back so ring them.

Graham

Purchase price is not original valuation, it's the discounted price. I would guess your family member sold for less than the original valuation.

E.g.

Original value €200k
Purchased for €150k
Sold for €188k

€188 - €200 = -€12k so nothing left to split

surrender monkey

The family member sold for 38 k over the original purchase price in year 9. The council took every penny over the original purchase price. Trust me I'm not wrong. You have to wait until years 11 to 20 to start seeing a reduction. Sell in years 1 to 10 and they put the boot in.

Gumbo

ted1 wrote: »

I don’t think that’s right, isn’t it percentage based. So if he got a house for 150 valued at 200 and sells for 300 he’ll get 300*.75=225.

After the 10th year the clawback reduces by 10% per year until year 20.
My sister is currently selling her house and she has it since 2005.

There’s a calculation which to do using the original % discount.
Also, you can reduce the clawback by any upgrades you’ve done such as garden work, windows, extensions etc

So the following applies for example.
Original purchase price against the original market value = discount %.

Now the sale price is multiplied by the original % discount and that’s your clawback.
Then you minus any % for the years over 10 allowing 10% per year.

GIMP

Sold recently, DCC took every euro over the original price I paid. Less a 10% discount as I sold in year 11.

Way too much confusing over this.

I bought for 175k, sold for 185k they got 9k, 1k off (10% discount) for the 11th year.

ted1

GIMP wrote: »

Sold recently, DCC took every euro over the original price I paid. Less a 10% discount as I sold in year 11.

Way too much confusing over this.

I bought for 175k, sold for 185k they got 9k, 1k off (10% discount) for the 11th year.

It’s not very confusing. If you bought for 175 I imagine that the house was worth more than 185. So in you case the affordable housing protected you from making a loss. So DCC made a loss. clawback comes into effective when you sell for higher than the I original house price and is percentage linked.
http://www.dublincity.ie/housing-and-community-i-own-my-home-section/i-bought-my-home-council

Graham

I think some posters are confusing the original purchase price with original value.

E.g. with a 10% Discount:

Original Purchase Price = €180,000
Original Valuation = €200,000

Seller gets nothing if the property is sold for less than €200,000.

vandriver

You pay the % discount on the sale price.
In your case,about 10.5%.
So if you sell for 250k,your clawback will be 26k

ladyjuicy08

vandriver wrote: »

You pay the % discount on the sale price.
In your case,about 10.5%.
So if you sell for 250k,your clawback will be 26k

Sounds better than €75k

Lonestar75

Hello,

Revisiting this thread as I am potentially selling my affordable house this year. Had originally contacted the local council last year. They confirmed the clawback rate was 26.02% and would go down by 10% per year after the first 10 years per year ( Year 10 26.02%, Year 11 23.42%, Year 3 21.07 etc. ) on the overall selling price. Then after 20 years there would be no clawback. This seems to match what I had originally understood the process to be and I was happy with it.

I purchased the property Jan 2009 at €199,750, with the market value being €270,000 at time of purchase. This provided the clawback rate 26.02%. I agreed with this, as the paperwork I signed (still have a copy notes the remainder (€70,250) was to be paid by the council. Fair enough!

Through a twist of fate old paperwork from my retired solicitor arrived recently and within their paperwork, it actually notes the council only paid €50,000 and not €70,250 as I had originally believed.

Is it not the case then that my original clawback rate should be less, after all that what I have on my original signed document as the contribution by the council and that was the market value as well, hence the calculation for the clawback rate? The council have confirmed the market rate was €270k and their contribution was €50k, not €70k

If anyone has a similar experience, appreciate any insight

Thanks