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What redemption means
Redemption means buying back some or all of the FHS equity share in your home. Once fully redeemed, the FHS percentage is removed and you no longer carry that shared-equity stake.
You can think of redemption as the exit route from the scheme. It can happen voluntarily because you want to reduce or clear the FHS share, or it can be required because of a trigger event such as selling the property.
Full redemption vs partial redemption
| Redemption type | What it does | When buyers use it |
|---|---|---|
| Full redemption | Buys back the entire remaining FHS equity share. | Before sale, before moving to a non-participating lender, or when the buyer wants the scheme fully cleared. |
| Partial redemption | Buys back part of the FHS share and reduces the remaining percentage. | When the buyer has savings or a lump sum but cannot clear the full share yet. |
The official scheme allows partial redemption, but there are limits: partial redemptions must meet the minimum amount rule and only a limited number can be made in a 12-month period.
Valuation rules: why timing matters
The buy-back amount depends on the property value used for the redemption calculation. That is why valuation timing matters.
- For a new-build or Tenant Home Purchase, the lender valuation can usually be used for a short period after drawdown.
- After that point, an updated valuation from an FHS-approved valuer is normally needed.
- The valuation is valid for a set period, so do not request it too early if you are not ready to redeem.
- For self-builds, redemption rules can differ before completion, so check the self-build terms carefully.
Events that can require full redemption
Some events can require the FHS equity share to be redeemed in full, along with any accrued unpaid service charges. The most important triggers to understand are:
- Selling the property. The share is normally cleared from the sale proceeds.
- No longer living there as your principal private residence. FHS is designed for owner-occupiers.
- Switching to a non-participating lender. This can require the share to be bought back in full.
- Death of the homeowner or last remaining applicant. The customer contract sets out how this is handled.
These are the moments where FHS becomes more than a purchase support. It affects later ownership decisions.
A sensible redemption plan
- Record the FHS percentage on day one. This is the key number for future planning.
- Check year 5 before the service charge begins. Decide whether savings, a gift or a remortgage could fund a partial or full redemption.
- Use partial redemption if full redemption is unrealistic. Even reducing the share can lower future obligations.
- Do not wait until sale agreed. If you plan to sell, contact FHS early so the redemption quote and solicitor steps do not delay closing.
- Keep official documents together. Your solicitor, lender and FHS customer portal may all become relevant later.
Common mistakes
| Mistake | Why it causes problems |
|---|---|
| Thinking the FHS share is a fixed euro amount | The buy-back amount can move with property value. |
| Ignoring year 6 | Service charges begin if the share remains outstanding. |
| Trying to switch to any lender without checking FHS rules | A non-participating lender switch can trigger full redemption. |
| Assuming renting out is allowed | FHS is linked to principal private residence use. |
| Leaving valuation until the last minute | Redemption and sale timelines can be delayed if valuation and documents are not ready. |
Frequently asked questions
Can I buy back the FHS equity share at any time?
In general, yes. You can request a full or partial redemption, subject to the scheme rules, valuation requirements and any limits that apply to partial payments.
Can I redeem only part of the share?
Yes. Partial redemption is allowed, but it must normally meet a minimum amount rule and only a limited number of partial redemptions can be made in a 12-month period.
Do I need a property valuation?
Usually yes after the early post-drawdown period. The valuation normally has to be completed by an FHS-approved valuer and is valid for a limited time.
What happens if I sell the home?
The FHS share and any accrued unpaid service charges normally have to be cleared on sale. You should notify FHS early if you intend to sell.
What happens if I switch mortgage?
Switching to a participating lender may not require redemption. Switching to a non-participating lender can require full redemption. Check this before starting a switch.
Will service charges also need to be paid when I redeem?
From year 6 onwards, accrued unpaid service charges may need to be cleared when you fully redeem the equity share.
Is full redemption always better than partial redemption?
Full redemption clears the scheme completely, but partial redemption can still be useful if it reduces the remaining share and future obligations while keeping cash pressure manageable.
Sources & references
Related calculators
Use these tools for the numbers behind this guide.