Publicly Funded House Purchase Loans

KILKENNY COUNTY COUNCIL

Publicly Funded House Purchase Loans

Kilkenny County Council can consider loan applications for the purchase or construction of houses situated within it’s administrative area from persons who have been refused by a Building Society and a Bank (letters of refusal must accompany the application) and satisfy the eligible requirements.

1.Persons Entitled to House Purchase loans:

(a)Persons who either individually or jointly have never purchased or built a house.

(b)Persons who have been accepted on the Council’s housing list

(c)Local Authority tenants or tenant purchasers who wish to buy a private house and return their present home to the Local Authority.

(d)A tenant, for more than one year of a house provided by a Voluntary Housing Body under the Rental Subsidy Scheme, who wishes to buy a private house and return present home to the Body.

2.Income Limits

The income limit for a single earner is €40,000. In the case of a joint application the following formula applies:

Two and a half times the principal income, plus income of spouse/partner cannot exceed €100,000. (Categories (b), (c) and (d) in 1 above are exempt from the income limit.)

3.The house must be suitable for the person’(s) needs. The maximum loan available is 95% of the value of the house subject to an overall maximum of €185,000.

4.The repayment period can be 15, 25 or 30 years (whichever the applicant desires)

5.The interest rate is variable and will, therefore, fluctuate from time to time. Prior notice of change will be forwarded to the borrower.

6.House purchase loans include mortgage protection so that eligible borrowers’ loans are repaid in the event of permanent disability or death. Full cover is available to borrowers under 55 years of age who are in good health and gainful employment at the date of loan approval. The life element only is available to unemployed persons and partners. The cost of this cover is met by an additional monthly charge. The current charge is 0.598% of amount borrowed. The cover is subject to the terms and conditions of the policy.

7.In the Case of New Houses

(a)(i)The house shall be constructed with good building practice.

Materials, fittings and appliances must be in conformity with the relevant Irish Standard Specifications and be acceptable to the County Council. For specific guidelines on these standards, consult Memorandum H.A. 1 of the Department of the Environment (conditions for the payment of New House Grant)

(ii) The dwelling shall comply with the Building regulations.

(iii)If the dwelling is to be provided in total or mainly by contract, it must be registered under the Home Bond. This will guarantee the house for six years against major structural defects.

(iv)Appropriate insurance cover will be required while the house is under construction

(b)In the case of previously occupied houses, the house must be in sound structural condition.

(c)The dwelling must comply in all respects with the Local Authority planning requirements.

(d)Title to the site must be registered with the Land Registry in the name of the applicant/s and must be free of all burdens. The sum advanced must be secured by the completion of a mortgage/charge document duly registered in accordance with the appropriate statutory provisions.

8.In all cases the dwelling must comply with the Local Authority Planning requirements. It should be noted that the payment of a loan involves no warranty on the part of KilkennyCounty Council or its employees as to the structural soundness of a dwelling. Applicants are advised to get an independent technical survey of the house before proceeding with the purchase.

9.Advances in respect of a house may be made in instalments from time to time as the work progresses. The first payment is made when the house has reached wall plate level, subject to the Council’s Solicitor having received satisfactory title. In this connection, the title to the site must beregistered with the Land Registry in the name of the applicants and must be free of all burdens. The sum advanced must be secured by the completion of a mortgage/charge document duly registered in accordance with the appropriate statutory provisions. The total instalments paid at any time shall not exceed 90% of the value of the work done.

10.General conditions which apply when the loan is advanced:

The borrower will be obliged to comply with the following conditions until the loan with interest is fully paid.

(a)Every sum for the time being due in respect of principal or interest shall be punctually paid

(b)The house shall be kept insured against fire for such sum as the Local Authority may require, in the joint names of the borrower and the County Council and the receipt for the premium shall be produced for inspection immediately after payment of same.

(c)The borrower shall use the house as his normal place of residence unless the Housing Authority consents to his residing elsewhere, whether indefinitely or for a specified period.

(d)The house shall be kept in good sanitary condition and repair.

(e)The house shall not be used in such a manner as to be a nuisance to the owners or occupiers of adjacent houses

(f)The housing authority may authorise any person, in writing, to inspect the house at all reasonable times for the purpose of ascertaining whether these conditions are complied with.

(g)The dwelling or any part thereof, shall not, without the written consent of Kilkenny County Council, or until the loan is fully repaid, be mortgaged, charged or alienated otherwise than by devise or operation of the law.

Documentation required with application

1.Copy of house plan and specification

2.Copy of Site Plan

3.Home Bond Certificate

1. Certificate of Gross Income for previous tax year

(copy of P.60 or Tax Assessment)

5.Application Fee of €38.00

6.Letter of Refusal from Bank

7.Letter of Refusal from Building Society

8.P.A.Y.E. Tax Clearance Certificate (which can be obtained at the local Income Tax Office)

9.Current payslip(s) if employed.

10.Statement from your employer confirming that you are in full time employment and details of your current weekly income.

11.Evidence of savings available i.e. statement from bank/credit union.

12. The following should be submitted where applicable:-

(a) Copy of Marriage Certificate if married

(b) Copy of Separation Agreement if Separated

(c) Copy of Divorce Documentation if Divorced

13.Completed Mortgage Protection Plan Form

Please Note:

Mortgage repayments cannot exceed 35% of household’s net income(after Tax, PRSI and levies).

KILKENNY COUNTY COUNCIL

Publicly Funded House Purchase Loans

An accompanying document outlining details of House Purchase Loans is available and should be carefully read before completing this application form.

Section A.

(1) Applicant/Principal Earner (2) Spouse or Joint Applicant

Name: ______

Address: ______

______

______

Contact Tel No. (1)______(2)______

P.P.S. No. (1)______(2)______

Marital Status:- Please tick.(see documentation required)

Applicant (1) Married ___ Single ___ Divorced ___ Separated ___

Applicant (2) Married ___ Single ___ Divorced ___ Separated ___

Date of Birth: (1)______(2)______

Did either of you previously own a house. YES NO

If so state address ______

REASON FOR DISPOSING OF HOUSE

Attach letter from Solicitor confirming how it was disposed of and proceeds or shortfall on completion of sale.

SECTION B:

To be completed in respect of the principal earner

Occupation: ______

Name and Address of employer ______

Present Weekly Income: Net (take home)______

Amount of gross salary or wages ______

in respect of tax year preceding date of application (P60)

To be completed in respect of the joint applicant or spouse

Occupation: ______

Name and Address of employer ______

Present Weekly Income ______

Amount of gross salary or wages ______

in respect of tax year preceding date of application

Give details of your present accommodation (state if rented, living with parents etc, number of rooms etc)

______

Length of time residing at this address ______

Dependants:

Name / Age / Relationship / Employment / Weekly Income

SECTION C. - Details of house to be purchased/built

Is the house new or previously occupied ? ______

IF PREVIOUSLY OCCUPIED

Address of Property to be purchased ______

Purchase Price of House ______

Name of Auctioneer in Charge of Sale ______

Name of Vendors’ Solicitor ______

Brief description of house i.e. number of bedrooms etc. ______

______

IF HOUSE IS NEW

Location ______Area of Site ______

Planning Permission Ref: ______Purchase Price of Site ______

Date Planning Permission Granted ______

Contract price (including cost of water, sewerage & ESB connection) ______

Name & Address of Contractor ______

Tax Clearance Certificate (submit copy)

Home Bond Membership (submit copy)

Complete for either new or previously occupied houses:

Water SupplySewerage

Public

Private

Group Scheme

Other costs (specify) ______

Legal Costs______

Total Expenditure______

Amount of Loan Required ______

Amount of Savings(submit evidence) ______

Period of Loan (15, 25 or 30 years)______

ONLYCOMPLETE THIS SECTION IF YOU ARE PURCHASING A LOCAL AUTHORITY HOUSE UNDER THE TENANT PURCHASE SCHEME:

Current Weekly Rent Payment:______Rent A/C No.______

Amount of Loan Required______

Amount of Savings (submit evidence)______

Variable Rate (see details of repayments

with current interest rate)______

OR

Fixed Interest Rate of 4.85%, ______

(excluding Mortgage Protection Insurance 0.598%)

Available for first five years only –

remaining term at

variable interest rate.

TERM: 15, 25 OR 30 YEARS______

If you wish to receive details of repayments on both fixed and variable rates you can request same from the Loans Section.

NOTE:

(a)Please submit copy of valuation letter issued to you.

(b)Please note that your loan application cannot be considered if arrears are outstanding on your Rent Account.

TO BE COMPLETED AND RETURNED WITH EVERY APPLICATION FORM

1. TO BE COMPLETED BY APPLICANT

1.YOUR FULL NAME______

(BLOCK LETTERS)

1. PREVIOUS NAME (IF ANY)______

1. PRESENT ADDRESS______

1. PREVIOUS ADDRESS (IF ANY)______

1. FULL ADDRESS OF NEW HOUSE______

______

1. P.P.S REFERENCE NUMBER______

TO BE COMPLETED BY INSPECTOR OF TAXES

I hereby certify in accordance with my records and to the best of my knowledge, that the above named person has not previously claimed income tax relief in respect of interest paid on money borrowed to purchase or build a dwelling.

Dated:______Signed:______

OFFICIAL STAMP

______

B. TO BE COMPLETED BY APPLICANT

1. NAME OF SPOUSE/JOINT APPLICANT (IF ANY) ______

1. PREVIOUS NAME OF SPOUSE/JOINT APPLICANT______

1. PREVIOUS ADDRESS OF SPOUSE/JOINT APPLICANT______

1. FULL ADDRESS OF NEW HOUSE______

______

1. P.P.S. REFERENCE NUMBER OF SPOUSE/JOINT APPLICANT______

TO BE COMPLETED BY INSPECTOR OF TAXES

I hereby certify in accordance with my records and to the best of my knowledge, that the above named person has not previously claimed income tax relief in respect of interest paid on money borrowed to purchase or build a dwelling.

Dated:______Signed:______

OFFICIAL STAMP

I ACCEPT THAT THE GRANTING OF A LOAN APPROVAL IMPLIES NO WARRANTY ON BEHALF OF KILKENNYCOUNTY COUNCIL OR ITS OFFICIALS AS TO THE STRUCTURAL SOUNDNESS OF THE HOUSE.

SIGNED:______SIGNED:______

APPLICANTAPPLICANT

DECLARATION OF APPLICANT(S)

To be made before a District Justice, Commissioner for Oaths or a Peace Commissioner, Member of Garda Siochana, Priest or Minister of Religion.

I, (We) ______and ______being the

applicant(s) named in this application, do solemnly and sincerely declare that all the foregoing statements and particulars in this application are true and correct in every particular, to the best of my knowledge, information and belief and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the Statutory Declarations Act, 1938.

______and______

Signature of DeclarantSignature of Declarant

Made and subscribed before me this ______day of______20__

at______

______

District Justice, Commissioner for Oaths,

Peace Commissioner, Member of Garda Siochana, Priest or Minister of Religion.

WARNING

Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on it.

IN ALL CASES THE DWELLING MUST COMPLY WITH LOCAL AUTHORITY REQUIREMENTS.

IT SHOULD BE NOTED THAT THE PAYMENT OF A LOAN INVOLVES NO WARRANTY ON THE PART OF KILKENNYCOUNTY COUNCIL OR ITS EMPLYEES AS TO THE STRUCTURAL SOUNDNESS OF A DWELLING.

APPLICANTS ARE ADVISED TO GET AN INDEPENDENT TECHNICAL SURVEY OF THE HOUSE BEFORE PROCEEDING WITH THE PURCHASE.

1