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Annuity Loans


									Supporting Documentation to be submitted with each Annuity Loan Application
1. 2. 3. 4. Fully Completed Application Form. Signed Customer Declarations. Letter of Refusal of loan facilities from BOTH a Bank and a Building Society. Details of Income, as appropriate  If Employed: (a) (b) (c) P.60 for preceding Tax Year. Original Salary Certificate (Appendix 1). 4 Current Pay Slips showing weekly Gross Pay, Deductions and Net Pay.

 If Self Employed: Accountants Report / Set of audited accounts for preceding 2 years. Current Tax Balancing Statement (2008). Current Preliminary Revenue Tax Payment Receipt.  If in receipt of Social Welfare Payment: Details of Total Amount of Social Welfare Payments received during the period 1st January, 2008 to 31st December, 2008. N.B. The primary earner on the application must be, in continuous employment for at
least two years (this can be Self-Employment). The second applicant must have at least one year’s continuous employment. Certain exceptions can be considered.

5. 6. 7. 8. 9. 10.

Photographic Identification

(Current Passport or Drivers Licence).

Proof of Present Address (Current Utility Bill or Bank Statement). Copies of Current Account Bank /Credit Union / Post Office Statements for preceding 6 months. Original Savings Statements for preceding 12 Months. Original Loan Statements for preceding 12 Months. Tax Clearance Certificate. Form HPL1 Form to be stamped by the Revenue Commissioners. (Appendix 1A). Signed Declaration for Mortgage Protection (if applicable). Planning permission Number. (If applicable). Itemised Builders Estimate. €50 Application Fee.
(If applicable).

11. 12.
13. 14. 15.

LIMERICK COUNTY COUNCIL Conditions for Annuity Loans
1. Limerick County Council is prepared to consider applications from qualified persons for loans for the acquisition or construction of houses situated within its Administrative County.


Amount of Loan.
The amount of the loan shall not exceed:€220,000 or 97% of the net value of the house. In determining the ability of a loan applicant to repay, the Council will operate a policy whereby the repayment amount of total borrowings, including any existing loans and financial commitments does not exceed 35% of net income (Gross Pay less PAYE and PRSI). This measure ensures that borrowers have sufficient remaining income to live on after payment of the mortgage.


Mortgage Protection Insurance.
It is mandatory that all mortgages must be covered by Mortgage Protection Insurance for the lifetime of the loan. It is your responsibility to ensure that your Mortgage Protection Insurance is paid each year and Limerick County Council is notified accordingly.


Value of the house:
The value of the house shall be:(i) (a) In the case of a house occupied for the first time, the amount of which in the opinion of the Council represents the reasonable cost (including all reasonable incidental expenses) of building the house and the value of the interest of the borrower in the site thereof, together with, where the ownership of the house is acquired by the borrower, all reasonable expenses incidental to such acquisition, or
(b) In any case, the amount which, in the opinion of the Council, the house, if sold

in the opinion market might reasonably be to realise, together with so much, if any, of the legal and other expenses incidental to the proper acquisition of the ownership of the house, as the Council may consider proper. (ii) Where part of the house is used, or is intended to be used, for a purpose other than a dwelling, that part shall not be taken into account in determining the value of the house.


The value of a house may be determined by the Council before the house is constructed where plans of the house have been submitted to the Council for that purpose.


Use of a Dwelling House:
(a) The Council will not make a loan in respect of a house unless the house is used or is intended to be used primarily as a dwelling. A loan in respect of a Purchased Council house shall be made only to a person who would, in the normal circumstances, be eligible for a Council house.



Loan Instalment.
Where a loan is made in respect of a house in course of construction, the loan may be made by instalments from time to time as the building of the house progressed, so that the total loan does not at any time before completion of the house ,exceed 90% of the value of the work done up to that time on the construction of the house, including the value of the interest of the borrower in the site thereof, or 90% of the amount of the loan, whichever is the lesser.


A loan shall be repaid with interest within such period not exceeding 30 years, from the date of payment of the loan, or, if the loan is made in instalments, from such date as may be determined by the Council.


The rate of interest on a loan shall be variable and at such rate as may be fixed by the Council


A loan will be repaid by monthly instalments.


The borrower may, on paying all sums due on account of interest, repay the Council the whole of the outstanding principal of a loan, or any part thereof.


The borrower should ensure that there is a condition in the Contract entered into for the purchase or the erection of a new house, that the vendor or contractor shall maintain the house for, at least, a period of 12 months from the date of completion during which time he shall make good at his own expense all defects, imperfections, shrinkage and other faults arising out of or from the use of materials or workmanship not in accordance with specification and all such other structural defects or faults.


The borrower must occupy the house at his normal place of residence.


That the value of the ownership of the house is sufficient to provide adequate security for the loan.


That the title to the ownership is one which any ordinary mortgage would be willing to accept.


That the borrower is not a borrower in respect of any other loan made by them under the Act or is not the proprietor of a house in respect of which an advance or any part of an advance, made by them under the Small Dwellings Acquisition Acts, 1899 and 1962 remains unpaid. Notwithstanding anything contained in sub—paragraphs 2 & 3 of 12 above, the fact that a vested Council house is on vesting subject to an annuity and to the consequent restrictions shall not be a bar to the title being accepted by the Council, as security for a loan to purchase a house. That a repayment of the loan to the Council is secured by:(i) (ii) (iii) An instrument vesting the ownership in the Council. Where the ownership consists of a leasehold interest, by an instrument of mortgage. Where the title is registered under the Registration of Title Act, 1964 by charging the ownership to the Council.

Duties of Borrower:
The following provisions apply where a loan has been advanced:(i) (ii) (iii) (iv) (v) Every sum shall be punctually paid. The borrower shall use the house as his normal place of redsidence. The house shall be kept in good sanitary condition and repair. The house shall not be used in such a manner as to be a nuisance to the owner or occupiers of adjacent houses. A person authorised by the Council may enter the house at all reasonable times to confirm compliance with these conditions.


Transfer of Ownership.
The borrower shall not transfer his interest in the house without the consent of the Council.


A borrower is liable for the repayment of any sum due of a loan until he has transferred his interest in the house in respect of which the loan was made. Where default occurs in any condition of this Scheme, the Council will serve a notice in writing to the borrower requiring compliance and, if same occurs within 2 months, the Council will not take possession of the house.



A sum of €50 must be lodged with each application for a loan. The following charges will be payable by the borrower:The valuation fee and all legal fees. An engineering fee of €100 is payable to cover the first 3 inspections in a construction loan, for each subsequent inspection, a further €50 is payable.


A loan shall not be made where the borrower or his/her spouse either separately or with each other, has previously purchased or built for their own occupation another house in the state unless the borrower is in need of re-housing because the existing house is unfit for human habitation.


Income Limit.
In the case of a single applicant/earner, the income for the tax year preceding the date of application must not exceed €50,000. However, where income of applicant exceeds €50,000 because of overtime earnings, the application may be considered if the average of annual overtime earnings in the three preceding tax years, when added to the basic earnings in the qualifying year does not exceed €50,000. In the case of a joint application, the combined income of the borrowers must not exceed €75,000.

Important Note: Your home is at risk if you do not keep up payments on the Mortgage. The Payment Rates on this Housing Loan may be adjusted by the Lender from time to time.


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