Shared Ownership
This system offers home ownership in a number of steps to those who cannot afford full ownership in one step. Initially, ownership of the house is shared between the shared owner and the Local Authority. The applicant must purchase at least 40% (maximum 75%) of the value of the house and rent the remaining share (60% or less) from the Local Authority. The applicant must pay for the share by taking a mortgage loan from the Local Authority or by self contribution. The share of the house being rented may be bought out in full at any time. Alternatively, the applicant may purchase additional shares from time to time. However, they are required to purchase the full ownership within 25 years. The cost of buying out the balance of the equity in the house is calculated by adjusting the original value of the rented equity in line with movements in the Consumer Price Index.
Who is eligible?
The following are eligible for consideration under the shared ownership scheme:
- Tenants and tenant purchasers of local authority houses who intend to return their houses to the authority on providing a private house for their own occupation under the scheme.
- Persons included by the 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;
- Tenants of one year's standing of houses provided by approved housing bodies under the Rental Subsidy Scheme who intend to return their houses to the approved body on providing a private house for their own occupation under the scheme;
- Persons in need of housing whose household income in the preceding tax year, calculated in accordance with a formula, does not exceed €100,000. Under the formula, income will be reckoned as follows:
* "house" includes apartment, flat etc.
- in the case of a single income household, two and a half times the borrower's income in the preceding tax year;
- in the case of a two income household, two and a half times the income of the principal earner, plus once the other income.
Examples of how the proposed formula and limit would work in different circumstances are shown below:
Shared Ownership Examples| | Single income household | Single income household | Two income household | Two income household |
|---|
| Principal Income | €36,800 | €41,000 | €30,000 | €35,000 |
|---|
| Subsidiary Income | Nil | Nil | €17,000 | €20,000 |
|---|
| Formula | €36,800 x 2.5
= €92,000 | €41,000 x 2.5
= €102,500 | €30,000 x 2.5
+ €17,000
= €92,000 | €35,000 x 2.5
+ €20,000
= €107,500 |
|---|
| Eligible? | Yes | No | Yes | No |
|---|
Local authority tenants, tenant purchasers or tenants of houses provided by approved Housing bodies under the Rental Subsidy Scheme who avail of the Mortgage Allowance Scheme may not avail of the Shared Ownership Scheme as well.
Shared Ownership - Application for Provisional Loan.pdf (size 121.9 KB)
Shared Ownership Scheme - Explanatory Memorandum.pdf (size 95 KB)