Mortgage to Rent Local Authority
Kildare County Council – Local Authority Mortgage to Rent Scheme
(specific to Local Authority Borrowers only)
Introduction
The Local Authority Mortgage to Rent (LAMTR) scheme is a government initiative to help homeowners who:
- have mortgages through a local authority, and
- are at risk of losing their homes due to mortgage arrears.
The scheme is one of the possible solutions for people who have been involved in the Mortgage Arrears Resolution Process (MARP) with a Local Authority (LA) and whose mortgage has been determined as unsustainable. The most important step any household in mortgage arrears can take is to engage early with the Arrears Support Unit (ASU) of their LA.
The scheme enables householders to stay in their home. Ownership of the home transfers to Kildare County Council. The householder becomes a social housing tenant and pays a differential rent to the LA which is based on their income.
Kildare County Council becomes the landlord and the property becomes part of Kildare County Council’s housing stock.
The scheme has strict qualifying criteria.
Criteria
For you to qualify for the Local Authority Mortgage to Rent scheme:
- You must have co-operated with the Mortgage Arrears Resolution Process(MARP) with the Council and you must be unable to afford to pay your mortgage now or in the future.
- You must qualify for social housing from Kildare County Council Social Housing Supports Application Form
- The property must be your primary residence and must be currently valued at €515,000 (House) and €385,00 (Apartment) or less on the open market.
- Your property must be in good condition, must be in a suitable location and must suit your needs.
- You must not own any other property or have assets in excess of €20,000.
- Your net household income must not exceed €40,000 a year (Single person). Net household income is the household income after taxes and social insurance have been taken off. There are some additional allowances for children.
- You must have a long-term right to remain in the State
How it works
You voluntarily surrender possession of your home to Kildare County Council who will then rent it to you. The Council agree the price of the property based on the market valuation of your home. The proceeds from the sale of your home will go towards your mortgage debt and you come to an arrangement with the Council for any credit that may exist. You will no longer own your property, but you can continue living in your home as a social housing tenant.
How and where to apply:
Where appropriate, the Council will offer you the opportunity to apply for the scheme and give you an application form for mortgage-to-rent. If you are interested, you give consent in writing to the Council to submit your details to a number of organisations involved in the scheme. You then need to do the following:
- You agree to surrender ownership of your home in exchange for a tenancy agreement with the Council.
- You complete your Mortgage to Rent application form and a Social Housing Support application form and give them to your local authority along with all the required documentation, including the Letter of Offer to Participate in the Mortgage to Rent Scheme (issued to you by the Council). See also Mortgage to Rent Borrowers Flow Chart.
You should contact Kildare County Council’s Arrears Support Unit to discuss your suitability for the mortgage-to-rent scheme – see contact details hereunder.
See flow chart link - Flow Chart
Read more about the mortgage-to-rent scheme.
Getting advice
You must get legal and financial advice before the mortgage-to-rent process can go ahead.
The Council will pay up to €1600 for legal and financial advice (combined).
You can get financial advice from an accountant on the Mortgage Arrears Information and Advice Service: Panel of Accountants.
The Money Advice and Budgeting Service (MABS) can provide debt advice.
Appeals
If the Council does not agree that you are suitable for the mortgage-to-rent scheme, you can appeal to the Council’s Appeals Committee under the Mortgage Arrears Resolution Process (MARP)
Contact Us:
Arrears Support Unit – Finance Dept.
Tel: 045 980652 (Monday to Friday from 9.00am to 5.00pm)
Email: loans@kildarecoco.ie
www.kildare.ie/countycouncil
Useful contacts
Citizens Information
www.keepingyourhome.ie
Mortgage Arrears Information Helpline
Tel: 076 107 4050 (Monday to Friday from 9.30am to 5.00pm)
Money Advice and Budgeting Service (MABS)
Helpline: 1890 283 438 (Monday to Friday from 9.00am to 8.00pm)
www.mabs.ie or www.keepingyourhome.ie