What is the Affordable Home Purchase Scheme Equity Share?
The equity share, represented as a percentage value of the home, is the difference between the purchase price and the open market value.
The minimum equity share Carlow County Council can provide to applicants to help them "bridge the gap" is 5% of the full purchase price of the home.
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Applicants will not be eligible if they require less than a 5% equity share- see example below |
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| Open Market Value | What you can afford to pay (purchasing power) | Affordability gap | Affordability gap | Eligible to apply for Scheme? |
|---|---|---|---|---|
| €400,000 | €390,000 | €10,000 | 2.5% | No |
| €400,000 | €340,000 | €60,000 | 15% | Yes |
If you purchase an affordable home and the price you pay for the home is 15% less than the open market value of the affordable home, Carlow County Council will take a 15% equity share in your home.
If you choose not to redeem the equity share while living in the home, Carlow County Council may do so when the property is sold, transferred, after your death, or after the "long stop date", of 40 years.
For successful applications, conditions regarding the equity share are laid out in the Affordable Dwelling Purchase Arrangement document. This document is signed by all successful applicants prior to the completion of the sale.
Can I buy back the equity share in my home?
You can buy back the equity share in your home at any time, but you don’t have to.
You can buy back the full equity share in one payment, or pay it back partially However, the minimum amount is €10,000
The equity share in your home 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. If property prices increase, the amount you have to pay back will increase. if you bought your property in 2025 for €300,000 and the Council provided equity of 10% or €30,000 and you want to buy back the equity share in 2027 the property is revalued at €350,000, you will have to pay 10% of this, which is €35,000.
For example:
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Property Purchase in August 2025 Property Purchase Price €300,000 Equity Share amount €30,000 Equity Share Percentage 10% Same Property Valued in February 2027 Property Purchase Price €350,000 Original Equity Share Percentage 10% Equity Share amount €35,000 |
What is the process for buying back the equity share?
The Affordable Dwelling Equity Purchase Arrangement that you signed details the procedure in relation to buying back you equity share.
If you want to buy back some, or all of the Council’s equity share in your home, you must inform the Housing Authority in writing of your intention to make a redemption payment, and the proposed redemption payment amount minimum amount is €10,000
You must get your home valued. The valuation must be completed by Council Approved Valuer and you will pay for this.
You send this valuation report to the Council and ask them for a ‘redemption quote’. The redemption quote will tell you how much it will cost you to pay off some or all of the Councils equity in your home. This redemption quote is based on the valuation you get.
Payment must be made within 3 months of calculation. Once the redemption payment is made, the HA gives notice in writing to the homeowner with the revised affordable dwelling equity amount.
Should you wish to proceed with a redemption payment, additionally (and in order to comply with anti-money laundering requirements) you must submit:
- proof of ID (valid for at least the next six months)
- proof of address (valid for at least the last six months)
- documentation to support your source of funds. This could be any/all of the following:
- bank statements for 12 months to support savings
- a letter from your parent or third-party if you are receiving a gift
- a letter from your solicitor if you have recently received an inheritance
- a Contract for Sale if you are in the process of selling your property
proof of sale of an unencumbered asset - any other details that we may require as proof of funds
What if I don’t agree with the valuation?
If you don’t agree with the valuation provided, you should contact the Council to get a second valuation. If you don’t agree with the second valuation, the Council will get an independent assessment of your home’s value. This valuation is binding.
What if I add value to my home?
If you make a material change to your home that increases its market value, this increase will not be taken into account when valuing your property. For example, if you extend your home, the increase in the value of the home this brings will be excluded from the valuation.
Material alterations are defined as works that add additional living accommodation to the property, adapt the property to provide for access and use by a person with a disability, or upgrade the Building Energy Rating (‘BER’) of the property by two or more BER Ratings.
Examples of material alterations:
- any works to the property that require planning permission
- the addition of an extension or conservatory, which creates additional living accommodation
- the conversion of an attic space, garage, or basement which creates additional living accommodation
- changes to the internal property layout, such that the property is adapted to provide for access and use by a person with a disability such as:
- access changes such as creating a ramp or widening doorways
- installation of specially adapted kitchen units and worktops
- installation of specially adapted bathrooms
- works carried out to upgrade the energy efficiency of the home, resulting in the BER rating of the property improving by two or more BER ratings
Situations where I have to pay off the Equity Share
The Council can demand the repayment of the affordable dwelling equity by serving a Realisation Notice on the homeowner on the occurrence of certain realisation events which are set out in the Affordable housing Act 2021, including
- The expiry period of 40 years without redemption in full of the equity share by the purchaser(s) (which will be the period during which the Council may not realise its equity share other than for breach of other conditions of the agreement.
- Where the purchaser(s) dies, commits an act of bankruptcy or is adjudicated as bankrupt.
- A mortgagee, incumbrancer or receiver gains possession of the affordable dwelling.
- The dwelling becomes subject to an order or process for compulsory purchase.
- The dwelling is demolished or destroyed whether by fire or otherwise or is damaged so as to materially affect its market value.
The dwelling is abandoned or is no longer the principal primary residence of the purchaser(s)
- The dwelling is sold
- Where there is a material breach of a covenant in the affordable dwelling purchase arrangement.
- The purchaser(s) is found to have deliberately misled the Council in respect of any material fact regarding eligibility or priority in making their application.
A Realisation Notice will specify a period (not shorter than three months commencing on the service of the notice) after which the Council will be entitled to realise the affordable dwelling equity. The procedure for this arrangement will be clearly set out in the Affordable Dwelling Purchase Arrangement.
If I sell my home or rent it out
If you sell or rent out your home, you must pay off the Council’s equity share in your home. You must pay off the equity share in any situation where the home is no longer your primary residence.
If you sell your home and this amount is not paid off because the proceeds of sale after costs and expenses are not enough to pay the EQUITY the HA get the balance from the homeowner as a simple collectable debt.
If I die
If you die, or for joint applicants, when the last applicant dies, the equity share must be paid off.
Once the equity Share is cleared in full, who will release the Council inhibition registered on the title to my property?
Your Solicitor will complete the necessary steps required to release the Inhibition.