Local Authority Affordable Purchase Scheme
Grey Abbey, Kildare Town Affordable housing Scheme is now closed.
What is the Affordable Purchase Scheme?
Under the Affordable Housing Fund, Kildare County Council will make homes available at a reduced price for buyers who are seeking to purchase a newly built home but need to bridge the gap between their mortgage and deposit to cover the full price of the home. It is proposed to deliver these homes on Council owned land and through advance purchases from Private Developers.
The Local Authority Affordable Purchase Scheme (LAAPS) provides purchasers with what is known as an equity facility. This means that purchasers will enter into an Affordable Dwelling Purchase Agreement with Kildare County Council and will receive funds from Kildare County Council in return for the Council taking a percentage ownership in the property purchased. The percentage ownership that Kildare County Council holds in your home is known as an equity share.
The purchaser can redeem or ‘buy out’ this equity share at a time of their choosing, but there is no obligation to do so. If the purchaser chooses not to redeem the equity share while living in the home, the Council can do so when the property is sold, transferred, or after the death of the owner.
The LAAPS will be aimed at households using their combined deposit and their approved maximum mortgage but who cannot afford the home at its open market value.
All queries on Affordable Housing can be sent to: email@example.com
How To Apply
There will be an individual application for each Affordable Housing scheme, there is no general application form or waiting list.
When affordable homes are made available for purchase, they will be advertised in the following places;
- Kildare County Council’s website
- Kildare County Council’s Social Media pages and
- In a local/national newspaper.
The advertisement will include details about the scheme including how and when to apply. Applications will be accepted through an online application portal. On the day the application portal opens, you will first need to register on the portal and then you can proceed to complete the online application form and submit the requested documentation.
Please be aware that applications will be prioritised on a first come first served basis and in line with Kildare County Councils Scheme of Priority.
The affordable purchase price will be calculated by Kildare County Council based on the “purchasing power” of eligible applicants. This calculation considers applicants maximum mortgage capacity and the minimum price set for the home by the Council. The Applicant’s purchasing power must not exceed 95% of the market value of the property. The purchasing power of applicants will be calculated as the combined total of:
- Maximum mortgage capacity, i.e., 4 times gross household income, plus,
- A minimum deposit of 10% of the affordable purchase price, plus,
- Relevant savings**.
**If you have savings above a certain amount, you may not qualify for the scheme. You can have the money to cover the deposit on the home and an additional €30,000. Anything above this is added to your purchasing power. If this purchasing power goes above 95% of the market value of the home, you are not eligible for the scheme.
- This initiative is targeted at first-time buyers and ‘fresh start’ applicants. Details around who can qualify under the ‘Fresh Start Principle’ is available here
- Each person included in the application must have the right to reside indefinitely in the State.
- Applicants “purchasing power” must not exceed 95% of the market value of the property.
- Your gross household income must be below a certain level. This is calculated by multiplying your gross income by 4. This figure must then be less than 85.5% of the market value of the home. *Alternatively, you must have proof from a bank or financial institution that you cannot get a mortgage for 85.5% of the market value of the home. All income that is assessable can be viewed here
- The income limits will differ depending on the properties being sold and this information will be included in Kildare County Council’s advert.
In general, the maximum income limit for an affordable dwelling is 85.5% of the market value divided by 4 (with exceptions)
While it is not a requirement, it is recommended that applicants have their Mortgage Approval in Principle prior to applying for Affordable Housing, or at least be in a position to apply for a mortgage.
A minimum deposit of 10% of the purchase price of the property will also be required so applicants should ensure they have sufficient savings before applying. First time buyer applicants can avail of the Help to Buy Scheme. This is operated by the Revenue Commissioners. For more information please visit revenue online
Please be advised that if you are applying as a Fresh Start applicant, you will be required to have a minimum of 20% deposit as per the Central Bank lending rules.