The Local Authority Affordable Purchase Scheme is designed to help eligible buyers purchase homes at reduced prices, making homeownership more accessible in Ireland. This guide will explain how the scheme works, who qualifies, and how to apply.
What Is the Local Authority Affordable Purchase Scheme?
The Local Authority Affordable Purchase Scheme is a government initiative that allows first-time buyers and eligible applicants to purchase newly built homes at discounted prices. In exchange, the local authority retains a percentage stake in the property, which can be bought out over time.
Who Is Eligible for the Affordable Purchase Scheme?
To qualify for the affordable purchase scheme, applicants must meet the following criteria:
- Be a first-time buyer or meet certain exceptions.
- Earn below the income threshold set by the government.
- Intend to use the property as their primary residence.
- Be unable to purchase a home at full market price without support.
How Does the Local Authority Affordable Purchase Scheme Work?
The local authority affordable purchase scheme involves several key steps, from identifying eligible properties to managing the equity share retained by the local authority. Through this scheme, buyers can access discounted new-build homes, with the option to gradually repay the local authority’s share and gain full ownership over time. Below is an overview of how the affordable purchase scheme works.
- The local authority identifies new-build homes available under the scheme.
- Eligible buyers apply for the scheme and provide financial documentation.
- The local authority offers a discounted purchase price, retaining an equity share in the property.
- The homeowner can repay the equity share over time, gradually gaining full ownership.
- If the property is sold, the local authority receives a proportionate share of the sale price.
How to Apply for the Local Authority Affordable Purchase Scheme
If you’re considering applying for the local authority affordable purchase scheme, follow these steps to navigate the process smoothly.
Step 1: Check Your Eligibility
Review the eligibility criteria and ensure you meet the income and residency requirements.
Step 2: Find Available Properties
Local authorities publish lists of eligible homes. Check with your county council or housing department for details.
Step 3: Complete the Application Form
Fill out the affordable purchase scheme application form, available from local authorities.
Step 4: Submit Supporting Documents
Provide proof of income, mortgage approval, and identification documents.
Step 5: Receive Approval and Secure Financing
Once approved, secure a mortgage to cover the remaining purchase price. You can check how much you can borrow for a mortgage in Ireland.
Benefits of the Affordable Purchase Scheme
The Affordable Purchase Scheme offers significant financial advantages for eligible buyers, making it easier to own a home without the full market price burden. By reducing upfront costs and providing a structured equity buyout option, the scheme lowers mortgage repayments and enhances long-term financial security. Below are some key benefits:
- Lower Purchase Price – Buy a home at a discounted rate, reducing mortgage costs.
- Government Support – The scheme makes homeownership more accessible for lower-income earners.
- Gradual Equity Buyout – Homeowners can repay the local authority’s stake over time.
- Secure Homeownership – The scheme helps buyers avoid long-term renting.
MortgageLine Helps You Get the Best Mortgage for Your Needs
At MortgageLine, we specialize in helping first-time buyers and affordable housing applicants secure the best mortgage deals. We provide:
- Expert mortgage advice tailored to your financial situation.
- Guidance on the application process to increase approval chances.
- Access to competitive mortgage rates to help you save money.
If you’re applying for an affordable dwelling purchase scheme, we can help you secure the right mortgage for your needs. Learn more about mortgages for first-time buyers.
FAQs
Is There Stamp Duty on Affordable Housing?
Yes, stamp duty generally applies, but some exemptions or reductions may be available for affordable housing applicants.
How Much Deposit Do You Need for Affordable Housing?
Deposit requirements vary, but typically, you need 10% of the purchase price. However, government schemes like the Help to Buy scheme can assist with this.
How Do I Get an Affordable Purchase Scheme Application Form?
You can download the affordable purchase scheme application form from your local authority’s website or request a copy from your county council.
Do I qualify for the Local Authority Affordable Purchase Scheme?
To qualify for the affordable purchase scheme:
- Your income must be below a certain level. This is calculated by multiplying your gross annual income by 4. This figure is known as your ‘purchasing power’, and it must then be less than 85.5% of the open market value of the affordable home.
OR
- 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.
The market value of the properties is agreed by the local authority running the scheme before the scheme is launched. Check with your local council for details.
Get Expert Help with Your Affordable Home Purchase
MortgageLine can help you navigate the Local Authority Affordable Purchase Scheme and secure the best mortgage for your needs. Contact us today for a free consultation!
