JOHN LYONS TD FINGLAS NEWS KEEPING IN TOUCH A new Tenant Purchase Scheme has been announced. The scheme will begin in January 2016. The Scheme will allow tenants in council houses to buy their home. Tenants will be entitled to a discount of between 40%-60% (depending on income level).
WHAT IS RECKONABLE INCOME?
WHO IS ELIGIBLE TO PURCHASE? A house may be sold only to its tenant (including joint tenants); The tenant must be living in the house for at least one year; The tenant must have a minimum income of at least €15,000 gross per year; A tenant is not entitled to purchase under the new scheme if he or she ■ Bought under a tenant scheme before ■ Has large arrears and has not agreed with the council to pay them off ■ Has or is engaged in anti-social behaviour (this also applies to household members).
HOW IS THE TENANT PURCHASE DISCOUNT CALCULATED? The discount given to a tenant purchaser depends on reckonable tenant income (e.g. joint incomes etc.), as follows: ■ A discount of 60% off the purchase price applies where reckonable tenant income is in the range €15,000 to €20,000; ■ A discount of 50% off the purchase price applies where reckonable tenant income is in the range €20,001 to €29,999; ■ A discount of 40% off the purchase price applies where reckonable income is equal to or greater than €30,000.
The full details of the scheme with examples can be found at – http://labr.ie/tenantpurchasescheme
Reckonable income is income earned from employment (before deduction of income tax, USC, PRSI etc.). Some social welfare payments may be included as reckonable income if they are not the main income (e.g. Social welfare payment to a spouse, civil partner or cohabitant of a tenant in employment). Payments from child benefit, carers allowance/benefit, FIS cannot be included.
HOW DOES THE TENANT PAY FOR THE HOME? The tenant can apply for a loan from the council. Funds from family members may be used towards the price of the house. The tenant does not need a deposit.
WHAT IS AN INCREMENTAL PURCHASE CHARGE? On sale of a house under the scheme, the council will place an incremental purchase charge on the house. This means that if you sell the house before a certain amount of time, you must pay back some of the discount you received to the council. The length of the charge depends on the discount you receive. For example, if you receive a 50% discount, the charge lasts for 25 years. Each year, the charge reduces by 2% and disappears after 25 years.
John Lyons, your local TD.
/JohnLyonsDublinNorthWest
Contact me on 618 3280 or john.lyons@oir.ie
@JohnLyonsTD