Please note that the information contained here is of necessity somewhat condensed. If you have any queries that require more detailed information then please contact the relevant section at the number shown.
What is the Tenant Purchase Scheme?
The Tenant Purchase Scheme (Sales Scheme) for Local Authority Dwellings (1995) enables Local Authority Tenants to purchase their homes at a reduced price. The current scheme is due to expire in June 2012 and all purchases approved under this scheme must be completed by this date.
Are any properties excluded from sale?
In general, all houses are included in the Sales Scheme with the exception of Senior Citizens’ dwellings, maisonettes, duplexes and all flats/apartments. Dublin City Council may, at its discretion, exclude houses for reasons of good estate management, because of their structural condition or if it proposes to carry out remedial works to them.
How long must I be a Tenant before I can apply to purchase?
To qualify you must (a) have a minimum of twelve months tenancy with Dublin City Council or other Local Authority or (b) a combined minimum of twelve months tenancy with Dublin City Council and another Local Authority. You do not have to be living in your present accommodation for twelve months before you can apply.
Is there an application fee?
There is a fee of €75.00 for the initial application and €100.00 for each subsequent application for a revaluation/new purchase price.
How is the purchase price calculated?
It will be the market value of the property in its existing state of repair and condition as determined by Dublin City Council less any tenancy discount etc. (see below) due. Any increase in the market value relating to improvements financed by you will be deducted from the market value before the purchase price is calculated.
What discounts are available?
If you have up to 10 years qualifying tenancy in a Dublin City Council and/or other Local Authority dwelling, you will be allowed a discount of 3% of the market value of the house for each year of tenancy up to a maximum of 10 years. The maximum discount available is 30%. There is also a further deduction of €3,810.00 in the form of a 'Tenant Purchase Grant'.
How long is the purchase price valid for?
The purchase price is valid for a period of three months from the date it is issued and the sale must be completed within this period.
Does Dublin City Council have to put the house into good structural condition?
The purchase price of your home will reflect its existing state of repair and condition at the time of application. Dublin City Council is therefore, under no obligation to put any house being purchased into good structural condition prior to its sale. You are recommended to seek independent architectural advice to ensure that you are satisfied as to its condition prior to finalising the purchase.
Can I appeal Dublin City Council’s valuation?
If you wish to appeal the valuation you must do so in writing and provide an independent Valuer’s report supporting your claim. The Valuation will then be reviewed.
If you wish to appeal the valuation on the grounds that there may be structural damage to the property, you must provide a report from a Quantity Surveyor or an Architect detailing the nature and extent of the damage. An inspection will then be carried out to establish this. The estimated cost of repairing any structural damage will be deducted from the market value of the property.
If you are not satisfied with the outcome of your appeal the matter can then be referred to an independent Arbitrator for consideration.
Are there any costs involved in the purchase?
With effect from 1st April, 2011 Stamp Duty is payable on the sale of the house. The maximum Stamp Duty payable from 1st April, 2011 is €100. Value Added Tax is also applicable at the appropriate rate on properties that are less than 5 years old. Tenants must engage and pay the cost of their own solicitor. An administration fee, payable to Dublin City Council on the day of closing the sale is also applicable.
How is the purchase financed?
The Tenant as purchaser is responsible for raising the necessary finance. The majority of purchasers will need a mortgage loan for this purpose from a Bank, Building Society or other financial institution. You must stipulate the intended source of the loan on your 'Acceptance of Price Form' (The form is attached to the letter notifying you of the sale price).
If you wish to purchase outright by means of a cash purchase, you must also stipulate this on your 'Acceptance of Price Form'. You will be required to provide documentary evidence of the source of these funds.
Applying to Dublin City Council for a mortgage loan
You can only apply to Dublin City Council for a loan if you provide evidence that you have been refused funding by at least two financial institutions. There is a non-refundable application fee of €75.00. You will be required to complete a loan application form and provide evidence of employment and income etc.
Lending criteria and terms and conditions will apply (full details available on request). Applications where the principal earner has not been in continuous permanent employment for at least two years will not be considered.
What other costs are involved with a Dublin City Council mortgage loan?
There is a loan administration charge of €300.00. This is in addition to the general administration charge of €300.00. €600.00 in total is payable on the day of the closing of the sale together with the appropriate Stamp Duty charge.
How is the loan repaid?
Loans are repaid in monthly instalments by means of Direct Debit payment from your bank.
Do I need household insurance?
A mortgage loan is secured on the title deeds of your home. Annual structural insurance (inclusive of fire and flood) will be required by applicants taking out a Dublin City Council Mortgage.
What about my rent payments?
Before the sale can take place it will be necessary for you to have an up to date rent assessment and a clear rent account. You will not be charged rent for the week in which the sale closes.
What is involved in the closing of the sale?
The sale will be completed in the Law Department of Dublin City Council. You will be notified in writing at least two weeks beforehand of the date of the closing and of what documentation you will be required to produce.
Who is responsible for maintenance after purchase?
You will be fully responsible for the upkeep and maintenance of the property from the date you purchase it.
Are there any restrictions on the use/resale of the house?
The house must, unless Dublin City Council otherwise allows, be occupied as the normal place of residence by the purchaser, his/her family or successor in title. If you wish to sell the house within a period of 20 years from the date of purchase or before you have acquired full ownership, you will require the consent of the Council for the sale. Evidence of you having alternative accommodation will be required prior to granting such consent.