West Cork body needs €50k to buy 20 houses

A West Cork housing association has been issued with a loan offer from AIB which will allow it to buy 20 properties under the Government’s mortgages-to-rent initiative.

Skibbereen-based Carbery Housing Association has been deemed an approved housing body.

Householders unable to pay their mortgages can opt for mortgages being transferred to an approved housing body on the understanding they will remain in their homes as permanent tenants of the association.

Secretary of the Carbery association, José Ospina, said if a householder was unable to make repayments and was eligible for local authority support, the housing association was enabled to buy the property, buying out the remaining mortgage and keeping the family on as permanent tenants.

However, it cannot proceed with its purchasing plan until it raises a shortfall of €50,000. It has surveyed seven properties and 13 more have been allocated by the housing agency for the programme.

The total cost of the properties is €851,500. The housing agency has agreed to a subsidy of €186,435.

After months of negotiation, AIB has issued the association a loan offer for €615,815 on a term of 20 years at 4.5% interest. However, it must contribute the €49,250 balance.

Mr Ospina said: “We’re looking to borrow slightly more than what the bank feels is safe to lend on the value of the property. It is absolutely essential for the future of the householders and the project that we raise the €50,000 required as soon as possible.”

The association is hoping to raise the money through crowd-funding and it is also contacting trusts for financial assistance.

“We have worked hard to get to the position we’re at and we are continuing to try and raise the necessary funds. I would hope that people would see this as a useful project going forward.”

www.icrowdfund.ie/campaigns/community-mortgages-to-rents/

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