WHAT IS THE RIGHT TO BUY?
The Right to Buy was introduced in 1980. It means you can buy your Council house at a discount to the full market value. Your discount is based on the number of years you have spent as a public sector tenant.
WHO HAS THE RIGHT TO BUY?
You must have held a public sector tenancy for at least two years if your tenancy was in existence before 18th January 2005 and be a secure tenant at the time of applying. If your tenancy began on or after 18th January 2005 you must have spent at least 5 years as a public sector tenant. You will only be able to purchase under the scheme if your house or flat is a separate home and is your only home. You may be able to exercise the Right to Buy jointly with members of your family who have lived with you for the past 12 months, or with someone who is a joint tenant with you.
WHAT DISCOUNT AM I ELIGIBLE FOR?
If you live in a house and your tenancy was in existence before 18th January 2005 your discount will start at 32% for the first two years tenancy and then increase by 1% for every additional year you have been a tenant up to a maximum of 60%. If you live in a house and your tenancy began on or after 18th January 2005 your discount will start at 35% and then increase by 1% for every additional year you have been a tenant up to a maximum of 60%. If you live in a flat and your tenancy was in existence before 18th January 2005 your discount will start at 44% for the first two years tenancy and then increase by 2% for every additional year you have been a tenant up to a maximum of 70%. If your tenancy was created on or after 18th January 2005 the discount available to you after 5 years is 50% and then increase by 2% for every additional year you have been a tenant, up to a maximum limit of 70%. However, the discount is subject to maximum limits which vary according to where you live. For example, if you live in the East Midlands, the maximum discount you can receive is £75,000. This figure is set by the Secretary of State.
ARE THERE ANY OTHER LIMITS ON DISCOUNT?
Yes, two:
A special rule called the cost floor may apply. Your discount will be reduced to reflect what your landlord has spent on building, buying, repairing or improving your house during the last 10 years before you apply to buy, and
if you have previously bought another Council property, any discount that you got then will usually be deducted from the discount that you get when you buy again. If you previously bought jointly and are now buying solely, or with a different person, then half the discount you previously received will be deducted.
WHAT IS A LEASEHOLDER?
If you buy a house you will usually buy the freehold. This means that you will be the outright owner. If you buy a flat, you will become a leaseholder. Normally, this means that you will be responsible for the interior of your home whilst your landlord will be responsible for looking after the structure and the exterior of the block. He will ask you to pay for major repairs and improvements, through service charges. These can be high – sometimes as much as several hundred pounds each year, or even more if your block needs major repairs.
WHO VALUES MY HOME IF I WANT TO BUY IT?
Landlords have to do this. If you think your landlord has valued your house too highly, you have the right to an independent valuation from the District Valuer. But you have to accept his valuation even if it is higher than the landlords.
CAN I RESELL MY HOME AFTER PURCHASING IT UNDER THE RIGHT TO BUY?
You may sell your home whenever you like. But if you applied for the right to buy before 18th January 2005 and sell with 3 years of buying it, you will have to repay some or all of the discount you received. If you sell:
f you applied for the right to buy on or after 18th January 2005, and sell within 5 years of buying it, you will have to repay some or all of the discount you received. If you sell:
The repayment of discount will be a percentage of the market value of the property when it is resold within the first 5 years of purchase. After 5 years you can sell without having to repay any discount.
WHAT HAPPENS IF MY LANDLORD DELAYS THE SALE?
Landlords have to deal with Right to Buy applications within certain time limits. The landlord must send out a RTB2 form, to either admit or deny your right within 4 weeks of receiving your application. He then has a further 8 weeks (12 weeks for flats) in which to send out your Section 125 Offer notice. You then have 12 weeks in which to either accept or withdraw. Once the offer is accepted by you, the times scales cease, it is then as long as it reasonably takes to complete the sale. If there is a delay because the landlord hasn’t sent you the right form or notice when he is supposed to, you may be able to get the purchase price reduced.
DO I HAVE TO COMPLETE THE PURCHASE WITHIN A CERTAIN TIME?
No. You can take all the time you reasonably need to get a mortgage or legal advice. You can also take your time to discuss the terms of sale with your landlord. But you should let your landlord know as soon as you are ready to go ahead and buy. If he doesn’t hear from you for a long time you may get a warning notice asking you to either complete the purchase or discuss any problems. If you do not respond to this, you may receive a second notice asking you to complete the purchase. If you don’t do this, your application will be withdrawn.
CAN I APPLY TO BUY IF I HAVE RENT ARREARS?
Yes, but your landlord is not bound to complete the sale if you have not paid all the rent or any other payment within four weeks from the date you were asked to pay it. Also you may lose your secure tenancy and no longer have the right to buy if your landlord has obtained a suspended possession order against your property as a result of your rent arrears, which you subsequently breach.
DO I HAVE THE RIGHT TO BUY IF I AM IN RECEIPT OF HOUSING BENEFIT?
As a tenant, you may be able to claim housing benefit to help with the rent. As an owner-occupier, you will not receive any housing benefit to help with your mortgage costs. You may be entitled to income support to assist with housing costs, but this is not usually payable for nine months after you first claim it.
For further information on the Right to Buy, please contact 0845 258 5550 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Your Right to Buy your Home Summary Your Right to Buy your Home - House
Your Right to Buy your Home - Flat Right to Buy Application RTB1 Form
