Sunday 24 September 2017

NAMA property scheme to protect buyers to be extended

Charlie Weston Personal Finance Editor

A PROPERTY scheme that protects buyers from falling prices is to be extended across the country.

The National Asset Management Agency (NAMA) offer aims to insulate homebuyers from negative equity and will now be extended to another 180 houses in 12 counties across Ireland.



Negative equity is where the value of the mortgage is greater than the value of the property.



Called the 80:20 deferred payment scheme, NAMA sets aside 20pc of the selling price for five years.



Buyers who enter the scheme pay 80pc of the agreed sales price up front.



After that time, if the value of the property falls by anything up to 20pc, the buyer will have a corresponding amount knocked from their mortgage.



Launched in May, it included 115 houses in three counties but the expansion boasts a greater geographical spread.



So far 41 houses that were part of the original pilot scheme have been sold.



Now another 180 properties, ranging in size from two-bedroom to five-bedroom homes, in 12 counties will be added.



Prices are as low as €100,000.



The properties are located in Carlow, Clare, Cork, Dublin, Galway, Kerry, Kildare, Kilkenny, Limerick, Meath, Sligo and Wexford.



Three banks are participating in the scheme - Bank of Ireland, AIB subsidiary EBS and Permanent TSB bank.



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