State-owned asset management company Kedipes on Thursday announced that its mortgage-to-rent scheme, launched in December 2023 to protect vulnerable homeowners, has already attracted over 2,500 applications.
Ahead of the scheme’s deadline on September 6, Kedipes said that it has processed 2,525 applications to date.
Of those applications, the company noted, 1,700 were found to have met the initial eligibility requirements based on borrowers’ financial situations and loan obligations.
Moreover, a considerable number are currently progressing through the more thorough stages of property eligibility, which involve technical inspections and value assessments.
Despite the scheme’s initial goal to complete 800 applications, the overwhelming response suggests this target is comfortably within reach, with some properties already transitioning to Kedipes’ ownership through formal Land Registry procedures.
At the same time, a number of rejection letters have been sent and 375 complaints have already been received on the basis of the planned procedure.
For those who qualify, the scheme provides significant relief by allowing them to rent their homes for 14 years, or indefinitely if they are over 65.
During this rental period, tenants have the opportunity to buy back their homes at a favourable price, which reflects changes in market conditions and accounts for rent already paid.
Furthermore, the option to repurchase the property is available after the first five years and must be exercised before the end of the 14-year term.
The purchase can be made either by the beneficiary directly or by a first-degree relative. If the option to repurchase is not taken, ownership of the property will remain with Kedipes.
The scheme is estimated to cost approximately €200 million.
