Affordable Housing at Rathealy Close, Fermoy, Co. Cork

Under the ‘Local Authority Affordable Purchase Scheme’, Cork County Council is making new homes available for purchase by eligible applicants at reduced prices. In return, Cork County Council will take a percentage equity stake in the Affordable Purchase home. The Council’s equity stake will be equal to the discount of the purchase price from the full market value of the home. For example, if an eligible applicant purchases a home at a 20% discount, Cork County Council will take a 20% equity interest in the home.

The main points of the scheme are as follows:

• The scheme is for first time buyers (along with some exceptions) who cannot afford to purchase a home at its market value.
• The scheme applies to new-build local authority houses and apartments.
• To participate in the scheme, applicants will be required to maximise their mortgage drawdown capacity (4 times a household income, from a participating bank).
• The maximum financial support available on each home will be established by Cork County Council.
• All purchasers will sign up to an ‘Affordable Dwelling Purchase Arrangement’ with Cork County Council. Under this arrangement the Council will take a percentage equity share in the dwelling, equal to the difference between the market value of the dwelling and the price paid by the purchaser, expressed as a percentage of the market value of the dwelling.
• The equity share required will not be less than 5% of the market value of the dwelling.
• The purchaser can buy out this equity share at a time of their choosing but there will be no requirement to do so.
• The Council may not seek realisation of its affordable dwelling equity for a 40-year period (other than for breach of the agreement).  However, the purchaser may choose to redeem or buy out the affordable dwelling equity at any time by means of one or a series of payments to the Council.
• If the purchaser chooses not to redeem the equity share while living in the home, the local authority can do so when the property is sold or transferred, or after the death of the owner.

A total of 20 affordable homes, consisting of 2 No. 3-bed mid terrace houses, 3 No. 3-bed end of terrace houses and 15 No. 3-bed semi-detached houses at Rathealy Close, Fermoy, Co. Cork are being made available for sale by Cork County Council, as constructed by Vella Homes under affordable dwelling purchase arrangements under the Affordable Housing Act 2021 and associated Regulations.  

Applications for other affordable housing developments in other parts of the county will be advertised and launched at a later date.
 

Applications for the development at Rathealy Close, Fermoy, Co. Cork  will be accepted via an online application portal which will go live on 19th March 2024 at 12 noon. 

Applications may be made between 12 noon on 19th March 2024 and 12 noon 9th April 2024.

Applications for other affordable housing developments in other parts of the county will be advertised and launched at a later date.
 

In order to be eligible to apply for Affordable Housing at Rathealy Close, Fermoy, Co. Cork, applicants must satisfy the following criteria;

• Each applicant must be a First-Time Buyer or meet the exceptions under the Fresh Start Principle or own a dwelling which, because of its size, is not suited to the current accommodation needs of the applicant’s household.
• To apply for a 3-bedroom mid terrace property, gross household income for the preceding 12 months should be below €70,539 however, those with a higher income may also be eligible if their lender provides them with a maximum mortgage which is less than 85.5% of the market value of the dwelling.
• To apply for a 3-bedroom end of terrace property, gross household income for the preceding 12 months should be below €72,142 however, those with a higher income may also be eligible if their lender provides them with a maximum mortgage which is less than 85.5% of the market value of the dwelling.
• To apply for a 3-bedroom semi-detached property, gross household income for the preceding 12 months should be below €73,318 however, those with a higher income may also be eligible if their lender provides them with a maximum mortgage which is less than 85.5% of the market value of the dwelling.
• Each person included in the application must have the right to reside indefinitely in the State.
• The affordable home must be the household’s normal place of residence.

Applicants’ purchasing power must not exceed 95% of the market value of the property.

Applicants may submit a Help to Buy from the Revenue Commissioners. Your Help to Buy application approval must include name(s) of applicant(s) with PPSN, maximum entitlement under the scheme and expiry date. (Applicants are considered first-time-buyers only if BOTH are buying their home for the first time.)

If you have not already applied for Help to Buy, you may apply at www.revenue.ie.

We will initially accept a screenshot of your application for a Help to Buy while you wait to receive your application approval.
Applicants who choose not to apply for Help to Buy must make a declaration stating they are first-time buyers and are not homeowners. Please sign and date this declaration.

The Fresh Start principle applies for applications to State affordable housing and loan schemes. This means that the following categories of persons are eligible to apply for the Local Authority Affordable Purchase Scheme:

• Applicant(s) that previously purchased or built a residential property but is divorced/separated or otherwise and has left the property and divested themselves of their interest in the property are eligible. Where a couple was in a relationship but not married, and the relationship has ended, the Fresh Start Principle can apply.
• Applicant(s) that previously purchased a residential property but has been divested of this through insolvency or bankruptcy proceedings, are eligible to apply. However, a separate assessment of creditworthiness will be conducted by the underwriters.

A further exception may apply in the case of an applicant who own a dwelling which, because of its size, is not suited to the current accommodation needs of the applicant’s household.

The application process will be via an online platform. The link to this platform is available at Affordable Housing Application and will be available and live from the 19th March 2024 at 12 noon. The system will allow for the input of all relevant data and the uploading of all supporting documentation. As per the Affordable Housing Act, only one application, per couple/single person, per scheme is allowed.

Step 1:REGISTERING: Register with the online platform. You will need the following information: Your full name, a valid & active email address & a mobile phone number. You will generate a registration verification number via text message, which you will enter to complete the set- up process.

Step 2: LOG ON: You will then be able to log on to the on-line platform to begin your application process. Again, as part of this log in, you will generate a verification number via text message to your mobile device. You will then need to enter this six-digit code to log in.

Step 3: THE APPLICATION: You will be presented with a number of tabs, each of which will need to be completed.

Tab 1: Application

This tab will contain the general scheme information, such as: scheme name, single or joint application, number of household members to reside in the house, type of property you are seeking etc.

Tab 2: Applicant A

This tab will contain the specifics of the principal applicant: name, date of birth, PPS number, Marital status, Nationality, contact telephone numbers and email, current address, county, Eircode, employment details, previous year’s gross income details, option to add details of other dependent household members (name, date of birth, age)

You will also be required on this tab to upload documents in relation to the following: proof of income e.g. salary cert/P60, proof of citizenship, proof of right to reside in Ireland, proof of buyer status i.e. Help To Buy, and proof of address.

Tab 3: Applicant B (if making a joint application)

This tab should be used where there is a secondary or joint applicant. The same details as above will be required.

Tab 4: Finance

All applicants will be required to provide evidence of ability to finance the purchase of their selected property, i.e. mortgage approval in principle letter and proof of savings i.e. statements for all bank & credit union accounts.

Tab 5: Declarations

You will need to agree to a number of declarations in relation to your application e.g. the information you submitted is true and accurate, etc.

• Evidence of ability to finance the purchase: 

i.e. a mortgage Approval in Principle (AIP) letter from one of the Pillar banks or a Local Authority Home Loan (LAHL) dated within the last 3 months. If you have not already applied for an AIP or LAHL, you will need to complete this process now.  Please note the Pillar Banks are: Bank of Ireland, Allied Irish Bank, PTSB, Haven, EBS or Local Authority Home Loan.

• Proof of Citizenship: Passport or Birth Certificate
• Proof of Right to Reside in Ireland for all non-EU/EEA applicants: GNI Stamp 4 
• Photographic Identification– 

Current Passport or current driving licence

• Proof of income and PPSN/Tax Registration Number:

PAYE employees: Salary Certificate completed by your employer and Employment Detail Summary, (previously known as P60) which is available from www.revenue.ie/MyAccount

Self-Employed: Documents for previous 2 years: - Audited/Certified Accounts, Tax Balancing Statement and Tax Payment Receipt

If not employed or were unemployed in any of the last 2 years:

Statement of total benefits received from Social Welfare in each year. This may be requested via email from your local Social Welfare/Intreo office.

• Proof of Present Address dated within the last 3 months.

Any one of the following documents: Current bank statement/credit union statement or utility bill (electricity, gas, Internet, mobile phone or telephone).

• Evidence of savings/deposit

Statements for the last 6 months of all Bank current accounts, saving accounts, Revolut accounts, Credit Union accounts & An Post accounts etc. for applicant(s) in sequential date order.

• Evidence of first-time buyers’ status and eligibility for the Help to Buy scheme:

Applicants may submit a Help to Buy from the Revenue Commissioners. Your Help to Buy application approval must include name(s) of applicant(s) with PPSN, maximum entitlement under the scheme and expiry date. (Applicants are considered first-time-buyers only if BOTH are buying their home for the first time.)

If you have not already applied for Help to Buy, you may apply at www.revenue.ie.

We will initially accept a screenshot of your application for a Help to Buy while you wait to receive your application approval.

Applicants who choose not to apply for Help to Buy must make a declaration stating they are first-time buyers, are not homeowners and are not applying for Help To Buy. Please sign and date this declaration. 

The types of properties available in the Rathealy Close, Fermoy development are 2 No. 3-bed mid terrace houses, 3 No. 3-bed end of terrace houses and 15 No. 3-bed semi-detached houses.

The minimum purchase price of the 3-bedroom mid terrace is from €255,000 and the minimum purchase price of the 3-bedroom end of terrace is from €262,500 and the minimum purchase price of the 3-bedroom semi-detached is from €262,500.

The market value of a property is the price for which the property would be expected to achieve on the open market. The market values for this scheme are as follows: 3-bed mid terrace is €330,000, 3-bed end of terrace is €337,500 and the 3-bed semi-detached are from €337,500 to €343,000.

The affordable purchase price for a property is the price that the applicant will pay for the property after the discount has been applied to the market value. This price is based on an applicant’s income and purchasing capacity.

Example – Property with a Market Value of €330,000.

The below example shows varying incomes and how they determine the affordable purchase price and the Council’s equity share of a property with a market value of €330,000. This example is based on the sale price for a 3-bedroom mid terrace house in Rathealy Close, Fermoy, Co. Cork.

The higher an applicant’s purchasing power is, the more they will contribute to the price and the less equity the Council will take.

There are 2 No. 3-bed mid terrace houses, 3 No. 3-bed end of terrace houses and 15 No. 3-bed semi-detached houses. It is recommended that two or more person households apply for the 3-bedroom dwellings – on the basis that under the Scheme of Priority for Affordable Dwelling Purchase Arrangements, as adopted by Cork County Council, where the number of eligible applicants exceeds the number of affordable dwellings for which applications are made, applications will be prioritised in accordance with Cork County Council’s Scheme of Priority, to include that for 3-bedroom dwellings, priority shall be given to two or more-person households.

The purchasing capacity of applicants will be 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

Plus

• In limited circumstances, any relevant savings, i.e., any savings in excess of the combined sum of the required deposit amount plus €30,000 may be taken into account.

Applicants may also avail of Help To Buy funds from Revenue. Please note that Help to Buy will only be released by Revenue if you have mortgage approval for a minimum of 70% of the Market Value of the house.

 

Financial institutions require that a minimum 10% deposit of the purchase price must be raised from applicants’ own resources.  Example: For a property with a purchase price of €275,000 you will need a deposit of at least €27,500.  The Help to Buy (HTB) Scheme operated by The Revenue Commissioners can be utilised towards this deposit amount where the applicant does not have savings to account for same.  

Please note that Help to Buy will only be released by Revenue if your mortgage and the Local Authority equity amount required by you, must be a minimum of 70% of the Market Value of the house.
 

The decision on your application is made by Cork County Council in accordance with the eligibility criteria set out in Question 5 of this document and a Scheme of Priority adopted by Cork County Council on 25th July, 2022.

A Scheme of Priority was approved by the Elected Members of Cork County Council on 25th July 2022. The Scheme of Priority outlines a methodology to be applied to determine the order of priority accorded to eligible households where the demand for such arrangements exceeds the dwellings or resources available. The main points are as follows:

• The Property must be suited to the applicant household’s need. In relation to 100% of the dwellings, date and time of application will be one of the criteria on which eligible applications will be prioritised under the Council’s Scheme of Priority.
• In relation to 30% of the dwellings, priority will be given to eligible applicants making the application who are currently resident in the Fermoy Municipal District area of Cork County Council or are within 10km of this Scheme.

Finance can be secured from one of the Pillar banks or a Local Authority Home Loan (LAHL) dated within the last 3 months.   If you have not already applied for an AIP or LAHL, you will need to complete this process now.  Please note the Pillar Banks are: Bank of Ireland, Allied Irish Bank, PTSB, Haven, EBS or Local Authority Home Loan.

Applications for Local Authority Home Loans should be made to Housing Directorate Loans Section, Floor 4, County Hall, Cork.

Email: housingloans@corkcoco.ie

An Approval in Principle letter from a private financial institution or a Local Authority Home Loan approval from the Cork County Council Housing Section, Housing Directorate should be provided.  Alternatively, an online calculator showing ability to potentially borrow the purchase amount can be provided. An example of an online calculator can be found at the following link: Home Loan Calculator

In order for Cork County Council to fully assess and process an application, applicants will need to submit a mortgage AIP letter from one of the Pillar banks or a Local Authority Home Loan (LAHL) letter dated within the last 3 months. Please note the Pillar Banks are: Bank of Ireland (BOI), Allied Irish Bank (AIB), Permanent TSB, Haven Mortgages and EBS.