Tenant Purchase Schemes

1995 Tenant Purchase Scheme

Please find some information on the Tenant Purchase Schemes.

1995 Tenant Purchase Scheme  - please find details as follows:

 If you have been a tenant of a Local Authority for at least one year, you may apply to purchase your property.

The most recent scheme was announced by the Minister for the Environment in May 1995.

Is there a closing date for the scheme?

Yes. The closing date for the Scheme is 31st December 2012. Sales of Houses must be complete by 30th June 2013.

How is the purchase price calculated?

The price of the house will be its market value, as determined by the local authority, in its existing state of repair and condition, less discounts. The structural condition of the house will be taken into account and any increase in the market value due to improvements you made to the house will be disregarded in calculating the price.

What discounts are available?

You will be allowed discount of 3% of the value of the house for each year of tenancy (up to a maximum of 10 years) of a local authority house plus €3,810.00 in lieu of First Time Buyer’s Grant.

Can a tenant contest a local authority valuation?

Yes, but you must submit a valuation certificate from a qualified valuer to support your claim. In the event of a significant difference between the authority’s original valuation and that submitted by the tenant, the authority will refer the matter to the Valuation Office.

Are any houses not for sale?

In general, all houses are included in the scheme with the exception of houses provided for elderly persons and flats which do not have a private entrance. Authorities may, at their discretion, exclude houses for reasons of good estate management, because of their structural condition or if they have proposals to carry out remedial works to them.

Does the local authority have to put the house into good structural condition?

No. The sale price of your house will reflect its existing state of repair and condition. The local authority is under no obligation to put any house being purchased into good structural condition prior to sale. No warranty by the local authority shall apply, or be deemed to be implied, as to the state of repair or condition, or the fitness for human habitation of any house sold under the purchase scheme.

Who is responsible for the maintenance after purchase?

Like all homeowners, you will be fully responsible for the upkeep and maintenance of your house from the date you sign the purchase agreement with the local authority.

How is the purchase of the property financed?

The purchase price will be payable at the point of sale and the tenant, as purchaser, will be responsible for raising the necessary finance. If you need to get a mortgage loan, as most purchasers will, you have the choice of applying to a bank or building society or your local authority.

The local authority will be able to offer you

A loan at a variable interest rate (i.e. it varies up or down as interest rates generally change)

Do tenant purchasers qualify for tax relief?

Yes. You may qualify for the usual income tax relief on mortgage interest. Your local Inspector of taxes will give you full details.

Is mortgage protection insurance required?

Mortgage protection insurance is compulsory in the case of a local authority mortgage and is currently (July 2012) charged at the rate of 0.4703% per annum which is added to the interest rate on your loan. The Mortgage Protection Interest for the Shared Ownership loans only provides cover for the mortgage, the rented equity is not included. Building societies and banks also normally require and arrange mortgage protection insurance.

Stamp Duty?

No stamp duty is payable on the sale of the house.

Are there restrictions on the use/resale of the house?

Yes. The house must, unless the local authority otherwise allow, be occupied as a normal place of residence by the purchaser, the purchasers family or successor in title. If you wish to sell, re-mortgage or transfer the ownership of the house within a period of 25 years from the date of purchase you must get the consent of the local authority.




Jennifer Frahill
Tenant Purchase Section
Social Policy & Housing Section
Phone: (061) 407121
email: jfrahill@limerickcity.ie

   Tenant Purchase Scheme Application Form MS Word - 157 Kb | PDF - 157 Kb)

   Information Sheet on Fixed Term Tenant Purchase Scheme 2011 (PDF - 61 Kb)

Last update:20/09/2012