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Shared ownership scheme

The shared ownership option is a housing scheme designed to enable persons on low incomes, who would not otherwise qualify for a mortgage, to buy a house of their choice.

Under the scheme, the applicant initially buys a share (minimum 40%) in a house and rents the remainder from the council, with an undertaking to buy the remaining shared within a 25-year period.

Eligibility

If you belong to one of the following categories you are eligible to apply for consideration for the shared ownership scheme:

  • Tenants and tenant purchasers of local authority dwellings who return their dwelling to the authority.
  • Persons included by a local authority in it's latest assessment of housing needs or accepted for inclusion in the next such assessment.
  • Tenants of one year's standing in accommodation provided by approved housing bodies under the Voluntary Housing Rental Subsidy Scheme.
  • Persons not in any of the above categories but considered by Clare County Council to be in need of housing and subject to the following income eligibility formula:
    • For a single income household, the income in the preceding tax year must not exceed €40,000.
    • In the case of a two-income household, two and a half times the principal (larger) income, plus once the subsidiary (lower) income in the preceding tax year must be less than €100,000.

Application form

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Frequently asked questions

  1. What kind of property can I get?
  2. What price range of property can I look at?
  3. Will I need a deposit?
  4. Is there any subsidy on the rental?
  5. How much will my repayments be?
  6. Is the interest rate fixed?
  7. Is mortgage protection insurance included?
  8. Is the rent I pay fixed?
  9. Do I rent the County Council's share forever?
  10. What about legal costs and stamp duty
  11. Do I need a solicitor?
  12. Can I sell the house?

  1. What kind of property can I get?

    Under the shared ownership scheme you can choose a new or existing property. The selection of the dwelling is your choice but Clare County Council must be satisfied that it is reasonably priced, of a suitable size and standard and free from any structural defects. New houses must comply with the Department of the Environment and Local Government guidelines. The property must be located within the administrative area of Clare County Council. If you decide to build a house, stage payments will not be advanced until the title of the site concerned is transferred to Clare County Council.

  2. What price range of property can I look at?

    At present Clare County Council operates on a maximum price of €185,000 for a property. Depending on your financial circumstances you can choose a dwelling up to that price level. In general, the Council will not approve funding packages under the scheme which require cumulative repayments (loan and rent and any other loans) exceeding 25% of the applicant's gross certified income. In this regard, income from child benefit and maintenance payments arising from marital break-up will be disregarded.

  3. Will I need a deposit?

    Yes, you will need to have a minimum deposit of €1,270. This will be paid to Clare County Council when you select a dwelling and will go towards paying for your share of that dwelling. You should not pay any deposit to the builder, estate agent or person selling the property.

  4. Is there any subsidy on the rental?

    If the gross income of your household for the previous tax year was less than €25,500 you will be entitled to an income related subsidy towards the rent which will reduce your repayments.

  5. How much will my repayments be?

    Obviously, the amount of your monthly repayments will depend on the cost of the property. The following examples will give you an idea of the range of repayments for prices between €120,000 and €150,000. The examples assume that the applicant is taking a 50% share of the cost and the applicant is not entitled to rental subsidy. The examples are based on a mortgage interest rate of 2.95% for a loan period of 20 years.

  6. Is the interest rate fixed?

    The Interest Rates on this housing loan are variable and may be adjusted by the lender from time to time.

  7. Is mortgage protection insurance included?

    Yes, applicants are eligible for mortgage protection provided they are in good health and under 55 years of age when the loan is advanced. The policy covers the life of the Principal and Subsidiary earner and long term disability of the principal earner. The charge is 0.598% and is incorporated into the interest rate.

  8. Is the rent I pay fixed?

    No, the rent you pay per month is the value of the County Council's share of the property multiplied by 4.3% and divided by 12. Each year the value of the rented share will increase in line with the rate of inflation. On the 1st July each year your rent will be calculated using the updated value of the County Council share.

  9. Do I rent the County Council's share forever?

    No, the maximum period you may rent for is 25 years, at which stage you must buy the County Council share of the property. You may, however, fund the purchase of the remaining County Council's share by obtaining another mortgage.

    The County Council actively promotes the Shared Ownership Scheme as a significant alternative to local authority housing and is among the leading local authorities nationally in the promotion of the scheme. Shared Ownership involves the funding of the purchase of houses for eligible applicants using part mortgage, which is lent to the applicant, and part purchase of the remainder by the Council, which is then rented to the applicant. The applicants select and negotiate the purchase of the house.

  10. What about legal costs and stamp duty?

    There is no stamp duty payable on properties bought under the Shared Ownership Scheme. However, Clare County Council will charge you approx. €2,500 to cover the legal costs involved in buying the property. The exact figure cannot be determined until each transaction is completed. This sum may be added to the mortgage. Therefore, it does not require an up-front payment.

  11. Do I need a solicitor?

    All legal work involved in buying the property will be done by Clare County Council's solicitor. However, you are advised to obtain independent legal advice before signing any documentation.

    Likewise, the property must be independently inspected by your own qualified architect / engineer. Inspections by County Council officials are intended solely for the information of Clare County Council in determining whether a loan should be advanced. No responsibility whatsoever is implied or accepted by the County Council for the condition of the property by reason of such inspections or reports.

  12. Can I sell the house?

    Yes, you will have the same rights to dispose of your property as any other private home owner. On the sale of the house the outstanding loan, together with the Council's equity in the property, must be repaid to the Council.

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Page last updated: 26/01/09