Housing: Shared Ownership
Shared Ownership Scheme System
The Shared Ownership offers home ownership in a number of steps to those who cannot afford full ownership in one step in the traditional way. Initially, ownership of the house is shared between the shared owner and the local authority.
Do I Qualify?
If you are
- in need of housing and your income satisfies the income test below,
or - a person whose application for local authority housing has been approved by the local authority,
or - a local authority tenant or tenant purchaser who wishes to buy a private house and to return your present house to the local authority,
or - a tenant for more than one year of a house provided by a voluntary body under the Rental Subsidy Scheme who wishes to buy a private house and return your present house to the voluntary body,
You may apply to your local authority for shared ownership
You should not enter into any commitment to purchase or build before getting approval in writing from your local authority.
How does the income test apply?
- Single income household
Multiply your gross income (before tax) in the last income tax year by 2.5. If the result is €79,359 or less you are eligible. - Two income household
Multiply the gross income (before tax) of the principal (greater) earner in the last income tax year by 2.5 and add the gross income of the subsidiary (lesser) earner in the last tax year. If the result is €79,359 or less, you are eligible.Examples of how the income test would apply in different circumstances:
| Single income household |
Single income household |
Two income household |
Two income household | |
| Principal income household |
€31,743 | €33,013 | €25,395 | €24,125 |
| Subsidiary income |
- | - | €15,875 | €21,585 |
| Formula | €31,743 |
€33,013 *2.5 €82,533 |
€25,395 *2.5 +€15,875 €79,359 |
€24,125 *2.5 +€21,585 €81,898 |
| Eligible | Yes | No | Yes |
Who Qualifies for the Rent Subsidy and how much is it?
For shared ownership transactions entered into on or after 1 January 2000, any shared owner whose household income in the preceding tax year was € 25, 395 or less qualifies for a rent subsidy. Subsidies range from €1,270 to €2,539, provided that the subsidy does not reduce the rent payable below € 1 per week. The amount of the subsidy will depend on your household income as follows:
Household Income Subsidy payable
p/a = per annum
Under € 12,697p/a = Subsidy of €2,539p/a
€12,698 to €15,236p/a = Subsidy of €2,286p/a
€15,238 to €17,776p/a = Subsidy of €2,032p/a
€17,778 to €20,316p/a = Subsidy of €1,778p/a
€20,317 to €22,855p/a = Subsidy of €1,524p/a
€22,857 to €25,395p/a = Subsidy of Nil
How do I buy out the remainder of the house?
The share of the house being rented can be bought out in full at any time. Alternatively, you may purchase additional shares from time to time, either by adding to your mortgage or paying cash. However, you are required to purchase the full ownership within 25 years. This does not mean that you have to repay all capital outstanding on the mortgage within the 25 year period. A shared owner may take out another mortgage to buy out the remaining share where the original mortgage is paid off. The cost of purchasing an additional share will be the initial cost of that share updated in line with inflation (using the Consumer Price Index)
Can I resell my house?
You can resell your house at anytime. The local authority will of course be entitled to claim any outstanding equity they have in the dwelling (updated in line with the Consumer Price Index).
In addition, if the local authority originally provided you with the house under the shared ownership scheme and it was provided at a discount from market value you must refund to the local authority a % of the proceeds from the sale of your house. The % of the proceeds to be repaid will be equal to the % discount originally received from the local authority. A full refund must be paid if you sell your house in the first ten years of occupancy. A reduction of 10% per annum is given for each full year of occupancy between 10 and 20 years. After 20 years of full occupancy no refund would be due to the local authority on the resale of the house.
Housing Section
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Phone: 094 9024444 (Castlebar) or 098 50400 (Westport)
Email: housing@mayococo.ie
Opening Hours: 9:30 a.m. to 1:00 p.m. and 2:00 p.m. to 4:30 p.m.