How does the scheme work

The main points of the scheme are as follows:

• The scheme is for first time buyers (along with some exceptions) who cannot afford to purchase a home at its market value.
• The scheme applies to new-build local authority houses and apartments.
• To participate in the scheme, applicants will be required to maximise their mortgage drawdown capacity (4 times a household income, from a participating bank).
• The maximum financial support available on each home will be established by Louth County Council following a full income assessment.
• All purchasers will sign up to an ‘Affordable Dwelling Purchase Arrangement’ with Louth County Council. Under this arrangement the Council will take a percentage equity share in the dwelling, equal to the difference between the market value of the dwelling and the price paid by the purchaser, expressed as a percentage of the market value of the dwelling.
• The equity share required will not be less than 5% of the market value of the dwelling.
• The purchaser can buy out this equity share at a time of their choosing by means of one or a series of payments to the Council.  The minimum payment being €10,000, however there will be no requirement to do so for a period of 40 years
• The Council may  seek realisation of its affordable dwelling equity  after the 40 year period known as the Long Stop Date.  (other than for breach of the agreement).  However, the purchaser may choose to redeem or buy out the affordable dwelling equity at any time by means of one or a series of payments to the Council.
• If the purchaser chooses not to redeem the equity share while living in the home, the local authority can do so when the property is sold or transferred, or after the death of the owner.

Please see our Frequently Asked Questions