Dáil Éireann Debate, Wednesday - 25 May 2022
51. Deputy Robert Troy asked the Minister for Housing, Local Government and Heritage if a person who has recently gone through a legal separation can qualify for a local authority home loan in order to purchase a remaining percentage of the family home from their former spouse. [26901/22]
Amharc ar fhreagraThe Local Authority Home Loan is a Government backed mortgage scheme for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build.
A ‘Fresh Start’ principle applies for applications to the Local Authority Home Loan.
The following categories of persons are eligible to apply for the Local Authority Home Loan under the Fresh Start principle:
- Applicant(s) that previously purchased or built a residential property, but is divorced/separated or otherwise and has left the property and divested themselves of their interest in the property are eligible.
In cases of divorce/separation, the applicant must meet all the following criteria;
- Be separated/legally separated/divorced (i.e., their marriage or civil partnership or partnership has been legally or otherwise dissolved) under a Court Order or by a separation agreement, and
- have left the family home and retained no interest in it; and
- the property under the Local Authority Home Loan is the first residential property purchased since leaving the family home.
In recognition of such instances, an exemption to the First Time Buyer eligibility criteria can be applied under the Fresh Start Principle. However, this is for a fresh start applicant who has divested themselves of the family home to enable them to purchase a new home only. It is not available to purchase a remaining percentage of the family home from a former spouse.
The final decision regarding the Local Authority Home Loan application is made by the relevant Local Authority Credit Committee on a case by case basis.
Further details can be found on localauthorityhomeloan.ie/
