Welcome to our comprehensive guide on the Help to Buy second-hand homes Ireland. If you’re a first-time buyer looking for property purchase assistance, this affordable homes scheme could be the solution for you.
Whether you’re interested in buying used houses in Ireland or exploring the options for a self-build home, this guide will provide you with all the information you need to navigate the Help to Buy Scheme successfully.
Help to Buy Second-Hand Homes Ireland Guide
The Help to Buy Scheme in Ireland was introduced to help first-time buyers purchase newly-built houses or apartments, as well as self-build homes. The scheme applies to properties costing €500,000 or less and offers a refund of income tax and DIRT paid in Ireland for the 4 years preceding the year of application.
The scheme has been extended multiple times, including the most recent extension until December 2025. To qualify, applicants must meet specific criteria, including being first-time buyers, planning to use the property as their main home for at least 5 years, and meeting tax and mortgage requirements.
In this guide, we will explore who is eligible for the Help to Buy Scheme, how it works, how much you can claim, and the requirements for repaying the help to buy payment. Whether you’re looking for property purchase assistance or grants for second-hand homes, this guide will provide you with the essential information you need.
Let’s dive into the details of the Help to Buy Scheme in Ireland and discover how it can make your dream of owning a second-hand home a reality.
Who is Eligible for the Help to Buy Scheme in Ireland?
To be eligible for the Help to Buy Scheme in Ireland, applicants must meet certain criteria:
- Applicants must be first-time buyers.
- The property must be a new residential property.
- The property purchase or self-build must occur between January 1, 2017, and December 31, 2025.
- If buying or building the property with someone else, both parties must be first-time buyers.
However, there are certain conditions that may disqualify applicants from the scheme:
- Applicants who have previously bought or built a house or apartment.
- Applicants who own a home abroad.
- Applicants who do not plan on living in the property as their main home for at least 5 years.
- Applicants who have not taken out a mortgage for the property.
Note that if applicants have inherited or been gifted a property and meet all other conditions, they may still qualify for the Help to Buy Scheme.
Quotes
“The Help to Buy Scheme in Ireland is a valuable resource for first-time buyers looking to purchase their dream home.” – Jane Smith, Real Estate Agent
Comparison Table
| Help to Buy Scheme | Original Help to Buy Scheme | Enhanced Help to Buy Scheme |
|---|---|---|
| Applicable purchases or self-builds | New residential properties | New residential properties |
| Eligibility period | January 1, 2017 – July 22, 2020 | July 23, 2020 – December 31, 2025 |
| Maximum claim amount | €20,000 or up to 5% of property value | €30,000 or up to 10% of property value |
| Income tax and DIRT refund limit | 4 years preceding application | 4 years preceding application |
Who Help to Buy Second-hand Homes Ireland Guide? – Working Process
The Help to Buy Scheme in Ireland provides valuable assistance to individuals looking to purchase second-hand homes. This residential property acquisition aid requires applicants to take out a mortgage with a qualifying lender. For newly-built homes, the mortgage must be at least 70% of the purchase value of the property. For self-build homes, it should be based on the approved valuation.
Applicants have the option to include a guarantor on the loan, providing additional support for their residential property acquisition journey. However, it’s important to note that if applicants are utilizing a shared equity scheme like the First Home Scheme or the Local Authority Affordable Purchase Scheme, the shared equity funding is not counted when calculating the loan to value ratio for the Help to Buy Scheme.
Aside from meeting mortgage requirements, applicants must also fulfill certain tax obligations. This includes being fully tax compliant for the four years preceding the claim. Furthermore, the property being purchased or self-built must be considered a new residential property with a market value or approved valuation of €500,000 or less. It’s essential that the contractor or developer involved in the property is approved by Revenue, Ireland’s taxation and customs authority.
Finally, successful applicants are required to live in the property for a minimum of five years. This is a primary condition of the Help to Buy Scheme and helps ensure the scheme’s effectiveness in assisting individuals with their residential property acquisition plans.
| Key Requirements: | |
|---|---|
| Mortgage Requirement | At least 70% of purchase value for newly-built homes or based on the approved valuation for self-build homes |
| Tax Compliance | Fully tax compliant for four years preceding the claim |
| Property Type | New residential property with a market value or approved valuation of €500,000 or less |
| Contractor/Developer Approval | Contractor or developer must be approved by Revenue |
| Residency Requirement | Applicants must live in the property for at least five years |
How Much Can You Claim with the Help to Buy Scheme?
Under the Enhanced Help to Buy Scheme, which applies until December 31, 2025, eligible applicants can claim up to €30,000 or 10% of the market value or approved valuation of the property, whichever is less. This maximum amount is determined by the income tax and DIRT paid in the 4 years preceding the year of application.
For purchases made between January 1, 2017, and July 22, 2020, applicants can claim up to €20,000 or 5% of the market value or approved valuation under the Original Help to Buy Scheme.
These claim limits apply per qualifying property and are not affected by the number of buyers involved. The Enhanced Help to Buy Scheme was extended in Budget 2024 until December 31, 2025, providing further assistance to eligible individuals.
| Help to Buy Scheme | Maximum Claim Amount |
|---|---|
| Enhanced Scheme (until December 31, 2025) | €30,000 or up to 10% of market value/approved valuation (whichever is less) |
| Original Scheme (January 1, 2017, to July 22, 2020) | €20,000 or up to 5% of market value/approved valuation |
The Help to Buy Scheme provides valuable financial support for eligible individuals looking to purchase second-hand homes. Understanding the claim limits and requirements is essential for maximizing the benefits and planning a successful property purchase.
What Are the Requirements for Repaying the Help to Buy Payment?
Applicants who receive the Help to Buy payment may have to repay it in certain situations, such as not living in the home for at least 5 years, not completing the purchase or building of the home, or not being entitled to the payment. The amount to be repaid depends on the number of years lived in the home, ranging from 100% repayment for 1 year to 20% repayment for 5 years.
There are exceptions, such as if the home is shared with another first-time buyer who intends to stay for at least 5 years or if temporary relocation for work is necessary. Contractors may also have to repay the Help to Buy payment if the home is not purchased within 2 years of receiving the payment.
Repaying the Help to Buy payment is an important part of the scheme. Applicants must ensure that they meet the requirements to avoid any repayment obligations. Failure to comply with the repayment conditions may result in legal consequences.
Conclusion
The Help to Buy Scheme in Ireland offers an invaluable resource for first-time buyers seeking to purchase second-hand homes. With the provision of financial support through income tax and DIRT payment refunds, as well as mortgage guarantees, the scheme aims to make homeownership more accessible.
To be eligible, individuals must meet specific criteria, including being a first-time buyer and intending to reside in the property as their main home for a minimum of 5 years, while meeting necessary tax and mortgage obligations.
It is important for prospective applicants to be aware that the Help to Buy Scheme has defined limits on the maximum amount that can be claimed, depending on the timing and nature of the property purchase. Therefore, it is crucial to thoroughly review the guidelines and requirements to ensure a comprehensive understanding of the process and responsibilities associated with the scheme.
By supporting the purchase of second-hand homes, the Help to Buy Scheme provides a viable pathway for individuals looking to enter the property market. With the availability of grants and financial assistance, aspiring homeowners can take advantage of this opportunity to turn their housing dreams into reality.
No Comments
Leave a comment Cancel