S H A R E D O W N E R S H IP H O U S I N G S Y S T E M WHAT IS SHARED OWNERSHIP? WHO QUALIFIES?

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1 S H A R E D O W N E R S H IP H O U S I N G S Y S T E M WHAT IS SHARED OWNERSHIP? Shared Ownership is a system which facilitates access to full home ownership in two or more stages to persons who could not afford full ownership immediately. The applicant will initially acquire a minimum 40% share in a house (or flat) and rent the remainder from the local authority, with an undertaki ng to acquire the remaining equity within a 25 or 30 year period. WHO QUALIFIES? The following are eligible for consideration under the Shared Ownership Scheme: (a) Tenants and tenant purchasers of local authority dwellings who intend to return their dwelling to the authority on provi ding a private house for their own occupation under the scheme (b) Persons included by a local authority in its latest assessment of housing needs under Section 9 of the Housing Act, 1988, or accepted for inclusion in the next such assessment (c) single income households where the income does not exceed 40,000 OR Where there are two ear ner s the following applies: two and a half times the principal earner s income plus the subsidiary earner s exceed 100,000. income cannot Applicants within the above categories are not automatically entitled to be granted approval under the system. On receipt of an application, the local authority will decide whether the person is generally eligible under the terms of the scheme and establish the relative priority of the application in relation to others before deciding whether to grant approval. No commitment regarding the purchase of a house should be entered into until approval in principle has been received from the local authority. Tenants or tenant pur chaser s who avail of the mor tgage allowance scheme may not avail of the shar ed owner ship scheme as well. HOW TO APPL Y? Application should be made to the Local Authority in whose area the house, which the applicant wishes to purchase, is situated. The L.A. will assess the application and if satisfied of the applicant s general eligibility, will issue a certificate of provisional approval which will establish entitlement to Shared Ownership provi ded the dwelling meets the requirements of the authority and the terms of the system are otherwise met.

2 WHAT HAPPENS WHEN AN APPROVED APPLICANT SELECTS A HOUSE? Building a New House When provi sional approval has been obtained :- 1. Apply for planning permission 2. When planning permission is granted obtain three tender forms from Kilkenny County Council. Have forms completed by three Registered Contractors and submit same plus plans and specifications of proposed dwelling 3. Submit completed final approval form Successful contractor must submit the following: 1. Public Liability Insurance 5 million 2. Employers Liability Insurance 3. Contractors All Risk Insurance 4. Evi dence of membership of CIF sick pay and pensions scheme. 5. Bond 6. Safety Statement 7. Current C2 Tax Clearance Certificate 8. Home Bond Certificate. Buying a Previously Occupied House When provi sional approval has been obtained :- 1. Have an independent surveyor carry out inspection of property and complete Surveyor Report Form (available from Kilkenny County Council) 2. Submit completed final approval form together with Surveyor s Report and PAYE Tax Clearance Certificate. You will be notified by Kilkenny County Council to submit Tax Clearance Certificate and deposit. A deposit should not be paid directly to the builder or the person selling the dwelling as it is the local authority that will initially acquire and pay for the house. WHAT KIND OF DWELLING MAY BE PURCHASED? It is the applicant s choice but Kilkenny County Council must be satisfied that the dwelling being acquired is reasonably priced, of suitable size and standard to cater for the applicant s household and free from structural defects. If it is a new house, the requirements as to construction standards, floor area etc., must comply with the Building Regulations. An existing dwelling must have hot and cold water systems, a fixed shower or bath and an indoor toilet.

3 HOW DOES THE APPLICANT PAY FOR HIS/HER SHARE? The applicant s share in the ownership of the house will be paid for by:- (a) the deposit of at least 1,270 (b) a mortgage The mortgage is repayable over a period not exceeding 30 years at a variable interest rate. The interest may be adjusted upwards or downwards from time to time. Applicants are advised that if they do not meet r equir ed paym ents, their houses ar e at r isk they may be char ged inter est on the ar r ear s. WHAT RENT HAS TO BE PAID? The following will apply to new Shared Ownership arrangements with effect from 1 st Januar y Rent will be calculated at 4.3% (3.8% interest rate plus 0.5% administration charge) of the value of the share in the ownership held by the Local Authority. The rent is payable monthly to the local authority and will be increased annually by a fixed 4.5% on the 1st of July. In all cases a minimum of 2 p.w. rent is payable, including those who qualify for subsidy. Interest due for the year at the prevailing rate will be applied to the rented equity in June of each year less the rent charged for the year. WILL THERE BE TRANSACTION COSTS? No stamp duty will be payable but some legal fees will be payable by the applicant & will be included in the overall cost of the house. However, every effort will be made by the local authority to keep these to a minimum. It is a matter for the applicant to choose whether to have independent legal advi ce on the transaction. SUBSIDY TOWARDS PAYMENT OF THE RENT Households with a gross income of 28,000 or less in the preceding tax year will qualify for an annual subsidy towards the rent as follows: HOUSEHOLD INCOME SUBSIDY PER ANNUM 13,000 and Under 2,550 13,001 15,500 2,300 15,501-18,000 2,050 18,001-20,500 1,800 20,501-23,000 1,550 23,001-25,500 1,300 25,501-28,000 1,050 Over 28,000 Household income is the total gross income of the purchaser and his or her spouse or the joint purchasers. NIL An applicant, once approved for subsidy in a particular band (other than the top band 25,501 to 28,000), will not be moved to a lower subsidy band until the total of all subsequent increases in income amount to three times the amount of the consequent reduction in subsidy.

4 WHEN AND HOW IS THE REST OF THE HOUSE PURCHASED? A person occupying a dwelling under the Shared Ownership system will have the right to purchase the local authority s share of the ownership and acquire full ownership at any time. Alternatively, this may be done by purchasing small trenches of the rented equity at differ ent stages. As part of the initial agreement, applicants will be required to buy out the full ownership within 25 year s. The cost of purchasing an additional share will be its initial cost adjusted to reflect the difference between the interest charged and rent paid. NOTES The maximum available under the Shared Ownership Scheme is 185,000 The amount of the rent will be increased by 4.5% with effect from 1st July each year. The mortgage payments may go up or down depending on interest rates Income tax relief is available on the interest paid on the mortgage element The applicants will be responsible for the maintenance, insurance and other ongoing costs r elated to the house The Shared Ownership Scheme involves important legal matters. In the event of any queries you should seek legal advi ce from your own Solicitor.

5 SHARED OWNERSHIP SCHEME Application for Provisional Approval 1. Name of Applicant(s): (a) (b) 2. Address: (a) (b) 3. P.P.S. No.: (a) (b) 4. Telephone No: (a) (b) 5. Date of Birth: (a) (b) 6. Nationality: (a) (b) 7. Status: (a) Single: Married: (b) Single: Married: Legally Separated: Divorced: Legally Separated: Divorced: Other: Other: 8. Dependants: Name Age Relationship Employment Weekly Income 9. Are you (a) A tenant or tenant purchaser of a Local Authority dwelling? Yes No (b) Included in a Local Authority Housing Assessment? Yes No If yes, name the Authority (c) In need of housing with household income less than 40,000 in the preceding tax year where there is only one earner, Yes No OR If more than one earner, two and a half times the principal earners income plus the subsidiary earner s income does not exceed 100,000. Yes No

6 10. Household Income in Tax Year Ended 31 st December preceding date of application: Gross Income of Applicant: (a) Gross Income of Applicant: (b) 11. (a) Have you ever previously owned a property? Yes No If Yes please give details (b) Present Accommodation Details: (Not applicable if answer to Question 9 (a) is yes) Private Rented: per week Sharing with another household: per week Living with Parents: per week Other (specify): per week If renting, are you in receipt of Rental Subsidy? Yes No per week 12. Approximate price/cost of house you propose to buy/build: Is it a new or existing house? New: Existing: If you have a particular house in mind, please give details: If you intend to build, have you a site available? Give details I declare to the best of my knowledge the information given is correct. Signed: Date: NOTE: Applicant (a) Applicant (b) Acceptance Of This Application Does Not Imply An Acceptance By The Local Authority Of Your Eligibility Under The Shared Ownership Scheme.

7 The Following Documentation Should Accompany Your Application: a) P.60 or other evidence of income for the previous tax year (i.e letter from Social Welfare if unemployed) b) Current payslips if employed (2 3) c) Statement from your employer confirming that you are in full time employment and details of your current weekly net income. d) P.A.Y.E. Tax Clearance Certificate (which can be obtained at the local Income Tax Office). e) Evidence of savings and borrowings i.e. statement from bank / credit union. f) If private renting: copy of rent book or letter from landlord. g) If you or your spouse/partner has previously owned their own home either alone or jointly, a letter from their solicitor is required indicating the outcome of the proceeds of sale of house. h) Copy of Legal Separation Agreement where applicable. i) Application fee of Items a) to i) and the completed application form should be returned to: Housing Loans Section, Kilkenny County Council, County Hall, John Street, Kilkenny. Telephone: