Dáil Éireann Debate, Tuesday - 17 May 2016
427. Deputy Donnchadh Ó Laoghaire asked the Minister for the Environment, Community and Local Government to confirm the maximum value of a house under which it will be eligible under the mortgage-to-rent scheme. [9819/16]
View answer428. Deputy Donnchadh Ó Laoghaire asked the Minister for the Environment, Community and Local Government if there are exceptions to the maximum value limits of a house for applying under the mortgage-to-rent scheme; if local authorities have discretion regarding the maximum value limits of a house. [9821/16]
View answer429. Deputy Donnchadh Ó Laoghaire asked the Minister for the Environment, Community and Local Government the process through the mortgage arrears resolution process, by which a distressed shared ownership house can be transitioned to a mortgage-to-rent scheme, and if the same house value limits apply in those circumstances as apply to the mortgage-to-rent scheme more generally. [9820/16]
View answerI propose to take Questions Nos. 427 to 429, inclusive, together.
There are currently two Mortgage to Rent (MTR) schemes in operation through my Department. A scheme exists whereby a local authority (LA) can acquire ownership of properties with unsustainable local authority mortgages, thus enabling the household to remain in their home as a social housing tenant (LA- mortgage-to-rent). The other scheme provides for an Approved Housing Body (AHB) to acquire ownership of a property with an unsustainable private mortgage, which also enables the household to remain in their home as a social housing tenant (AHB-mortgage-to-rent). Both schemes assist families with income difficulties whose mortgages are unsustainable, and where there is little or no prospect of a significant change in circumstances in the foreseeable future.
Identical maximum house value limits apply under both MTR schemes. Specifically, properties should be of a value no more than €350,000 for a house and €300,000 for an apartment or townhouse in the areas of Dublin, Kildare, Meath, Wicklow, Louth, Cork and Galway; and €250,000 for a house and €190,000 for an apartment or townhouse in the rest of the country. Priorities must adhere to the most up-to-date acquisition cost guidelines set by my Department.
In addition, for both types of MTR the property must be in negative equity. However, a property that may have marginal positive equity may be considered for inclusion in either schemes where that equity is no more than 10% of the Open Market Value to a maximum of €20,000 in Dublin, Kildare, Meath, Wicklow, Louth, Cork and Galway and €15,000 in the rest of the country.
Information in relation to local authority mortgage arrears, the local authority mortgage arrears resolution process (MARP) and the help available to borrowers is also available on my Department’s website: http://www.environ.ie/housing/home-ownership/mortgage-arrears/local-authority-mortgage-arrears-help-available
I can confirm that the MARP and the MTR for local authority borrowers are available on an identical basis for both full annuity local authority mortgage holders and Shared Ownership borrowers in mortgage arrears.
