Affordable Purchase Housing FAQ’s

FAQ’s Affordable Purchase Housing at Parkleigh Seven Mills, Clonburris, Dublin 22

• 1 Where are the Affordable Homes located?

South Dublin County Council, “the Council”, has an arrangement in place with a developer for the sale of 25 affordable homes at Parkleigh, Seven Mills to eligible affordable housing applicants nominated by the Council.  These homes are located on:

Parkleigh Row, Parkleigh Avenue, Parkleigh Square, Parkleigh Drive, and Parkleigh Lane. 

• 2 Who is eligible to apply?

Applicants wishing to be considered for Affordable Purchase Housing at Parkleigh, Seven Mills must:

• Subject to certain exceptions, be a first-time buyer and not own or have a legal interest in a dwelling
• Be in a two or more-person household that intends the affordable home to be that household’s normal place of residence.
• Have the right to reside indefinitely in Ireland. Citizens of a member state of the EU/European Economic Area can apply if they are living and working in Ireland. Non-Irish/EU/EEA citizens must have indefinite leave to remain in the State.
• Have a typical applicant household income for 2022 of €92,981 or less (see indicative income limits depending on property prices below):

A minimum of 30% of the affordable homes for sale will be reserved for applicants who are or have been resident in the administrative county of South Dublin (see map here) for a minimum of five years.

Evidence of proof of residency in the administration area of South Dublin can include verifiable evidence from the following sources:

• Revenue Commissioners
• Banking correspondence
• Utility bills
• Correspondence from Government Departments
• School records/verification
• Insurance correspondence
• 3 When and how can affordable housing applications be made?

Applications will be accepted through an online application system only. The system will allow for input of all relevant data and successful applicants will subsequently be requested to submit all required supporting documentation.  Applicants will have to register on the Council’s Housing Online (HOL) system before applying (see https://www.sdcc.ie/en/services/housing/housing-online/ for more details).  The HOL system is open for new registrations from affordable housing applicants. If you have previously registered or set up an account to manage another housing application (including tenancy, social/affordable housing applications and/or HAP) you will not need to register again. Once registered, applicants must complete an affordable housing application through the HOL system.

The portal for online applications for Affordable Purchase Housing at Parkleigh, Seven Mills  closed at 4pm on Friday 15th December 2023. Applications will now be reviewed and applicants will be notified in writing in the coming weeks to advise if their application has been deemed eligible or ineligible.

In the online application process, applicants will have to:

• advise if they are a First-Time Buyer
• provide details (name, date of birth, PPSN) for two members of their household
• declare the total gross annual income for their household
• advise if they have mortgage approval, deposit (which can include support from the Help to Buy scheme) and savings*
• Confirm they have the right to reside indefinitely in Ireland. Citizens of a member state of the EU/European Economic Area can apply if they are living and working in Ireland. Non-Irish/EU/EEA citizens must have indefinite leave to remain in the State.

*While it is not a requirement of this scheme, it is recommended that applicants have Mortgage Approval in Principle prior to applying for Affordable Purchase Housing, or at least be in a position to apply for a mortgage.

Necessary supporting documentation will be requested to verify the applicant’s eligibility for the scheme before an applicant is approved for the purchase of an affordable home.  All application details and data submitted will only be retained for this scheme and will not be carried forward for any future affordable housing scheme(s).

Applicants who submit multiple applications and/or include any false or misleading information on their application will be disqualified from this process.

• 4 How will successful applicants be decided?

All applicants who are eligible and submit a valid application to purchase one of these properties will be added to an order of priority based on the time and date of their application, subject to a minimum of 30% of such eligible applicants who are or have been resident in the administrative county of South Dublin (see map here) for a minimum of five years. Selected applicants will be required to fully verify their application details and offered the opportunity to purchase a property in sequence until all properties have been sold.

The developer is not involved in the administration or the selection process for this affordable housing scheme.

• 5 What type of properties are available for purchase?

In this affordable housing scheme, 25 homes are being made available for purchase as follows:

• 2 type G3 homes: 3-bedroom semi detached house (c. 93.9 sq. m/c. 1,011 sq ft)
• 6 type G2 homes: 3-bedroom end of terrace house (c. 93.9 sq.m./c. 1,011 sq.ft.)
• 5 type F2 homes: 3-bedroom end of terrace house (c. 107.3 sq.m./c. 1,155 sq.ft.)
• 6 type F1 homes: 3-bedroom mid terrace house (c. 109.3 sq.m./c. 1177 sq.ft. or c. 108 sq.m /c. 1163 sq.ft.)
• 6 type G1 homes: 3-bedroom mid terrace house (c. 93.9 sq.m./c. 1,011 sq.ft.)

All the floor plans for the above listed homes are available in the Parkleigh Affordable Purchase Housing brochure.

• 6 When will the properties be available

 The affordable homes delivered in this scheme are currently expected to be completed between October 2023 and March 2024.

• 7 What is the market value of the properties?

The market value of an affordable home is the price for which the affordable home might reasonably be expected to achieve on the open market.  The initial market valuation of the home to calculate the equity share is carried out by the Council.  For subsequent valuations of the property, a valuation mechanism will be set out in the Affordable Dwelling Purchase Arrangement.  A valuation will be required when a redemption payment is being made by the purchaser.

Over time, if the value of the affordable home increases, the amount owed on the value of the equity share will increase in line with the prevailing market value.

The market value of the properties is:

• Type G3 (3-bedroom semi detached house): €407,500
• Type G2 (3-bedroom end of terrace house): €407,500
• Type F2 (3-bedroom end of terrace house): €435,000
• Type F1 (3-bedroom mid terrace house): €425,000
• Type G1 (3-bedroom mid terrace house): €402,500

•  8 Do applicants need to have mortgage approval in place?

While it is not a requirement of this scheme, it is recommended that applicants have their Mortgage Approval in Principle prior to applying for Affordable Housing, or at least be in a position to apply for a mortgage. Purchasers can use the Local Authority Home Loan or a mortgage from the below listed financial institutions who have entered into a ‘Priorities Agreement’, to finance their purchase. This agreement between the Council and the bank will not impact on the purchaser but will record that the Council will retain an equity share in the property and will provide that the bank’s interest will take priority.

• Local Authority Home Loan (via SDCC; Applying for a Local Authority Loan - SDCC)
• AIB
• Haven Mortgages
• EBS
• Permanent TSB
• Bank of Ireland

If you are married/co-habitating etc. both names must be on your Mortgage Approval in Principle and Letter of Loan offer for the purpose of this scheme.

• 9 What is the affordable purchase price of these properties?

The affordable purchase price for the properties will be discounted on the market value and based on the specific purchasing capacity of eligible applicants.  The Council will provide an “Affordable Dwelling Contribution” to reduce the purchase price payable now by successful applicants.

Discounts ranging from a minimum of 15% of the market value to a maximum of 24% of market value approx. will be available depending on successful applicants’ income, deposit (which can include support from the Help to Buy scheme) and savings, with price ranges as follows:

The homes will be sold to eligible applicants who can demonstrate that they have the purchasing capacity between the minimum and maximum purchase prices. Your purchasing power is calculated as the combined total of:

• Maximum mortgage capacity, i.e., 4 times gross household income, plus,
• A minimum deposit of 10% of the affordable purchase price (which can include support from the Help to Buy scheme), plus,
• Relevant savings, i.e., any savings in excess of the combined sum of the required deposit amount plus €30,000.

 Applicant’s purchasing power will determine the price that they pay for their affordable home. The purchasing power will equal the affordable purchase price for eligible and successful applicants.

If an applicant’s purchasing power is below the minimum purchase price they are not ineligible for the scheme however they will need to confirm that they have additional funds such as a gift that will increase their purchasing power to the minimum purchase price.

Applicants with purchasing power assessed as over the maximum purchase price of the affordable units available will be ineligible for the scheme.

• 10 Can persons who are not a first-time buyer apply?

Applications, subject to certain exceptions, will only be accepted from first-time buyers.

You may qualify for this scheme under the Fresh Start Principle.

• 11 What documentation may the Council request to verify an application?

Some, or all, of the following documentation may be required from successful applicants as part of the verification of their application details:

1. Photographic ID for each member of the household
2. Proof of Address
3. Proof of residency in the Republic of Ireland for applicant(s) (dated within the last three months)
4. Proof of PPSN for each member of the household
5. Proof of savings (dated within the last three months)
6. Mortgage Approval in Principle stating the maximum amount available to applicant(s)
7. Confirmation of eligibility for the Help to Buy Scheme for applicant(s)
8. Proof of Income for 2022:

PAYE employees

• Employment Detail Summary 2022
• P21 Balancing Statement 2022
• Salary Certificate (dated within 3 months)

Self Employed

• Audited/Certified Accounts
• Tax Balance Statement
• Tax Payment Receipt

Social Welfare Income

• Evidence of all social welfare payments for applicants purchasing the property
• 12 What deposit is needed?

Financial institutions require that a minimum 10% deposit must be raised by purchasers.  The Help to Buy Scheme operated by the Revenue Commissioners can help with the deposit needed to purchase these affordable homes.  Please see https://www.revenue.ie/en/property/help-to-buy-incentive/index.aspx for more details.

• 13 What is the Affordable Dwelling Contribution?

The Council will provide a contribution known as an “Affordable Dwelling Contribution” that facilitates the purchase of homes by an eligible applicant.  The Affordable Dwelling Contribution is the difference between the combined total of the purchaser’s deposit and maximum mortgage capacity (and savings where relevant) and the market value of the home on the date of purchase:

[Market Value] minus [Deposit + Mortgage Capacity + Relevant Savings] = Affordable Dwelling Contribution.

Further information about the Affordable Dwelling Equity contribution and Affordable Dwelling Purchase Agreement is available here.