The right to buy scheme
If you are a council tenant and fit certain specified criteria then the "Right To Buy" scheme gives you the right to buy the property that you have been living in, off of the council at a discount of the purchase price of the property. This scheme also applies to tenants who have the Preserved Right To Buy (PRTB).
Can you access the Right To Buy scheme?
Yes, if you fit the following criteria:
- If you have been a secure council tenant for at least two years (or five years if you became a tenant after 18 January 2005) you are likely to have the Right to Buy your council home at a discount.
- If your were a secure tenant of a local authority and the ownership of your property was transferred to a housing association you may be eligible for a Preserved Right to Buy (PRTB) for your property. This will only apply if you are still the tenant of the same property before and after the transfer.
No, you do not have the right to buy if:
- you are an assured tenant of a registered social landlord (RSL) and do not possess a PRTB.
- your home is rented in relation to your employment.
- the courts have issued a possession order for you to leave your home.
- you are undergoing bankruptcy proceedings.
- you live in housing specially provided for older people and (in certain cases) disabled people.
What discount does the right to buy scheme give?
This depends on how long you have been a tenant in the property for. A five year tenancy will give you a 35% discount and a 20 year tenancy will make you eligble up to a 50% discount of the property value on the right to buy scheme.
This does also depend on the area that you are living in, so double check with your landlord about these figures as they can fluctuate.
Contact us now!
If you wish to speak to someone and quickly then we re only a phone call away. If you wish us to contact you with your enquiry then please submit a request via our forms that you will find helpful and insightful for each type of mortgage
Section 125
Ultimately, your landlord will make the decision whether you can access the right to buy scheme and if you are successful then a letter will be sent to you called a Section 125 notice which outlines the following:
- the price the landlord thinks you should pay for the property
- terms and conditions of the sale
- the discount you are eligible for
- estimates of service charges and improvement costs you are likely to pay in the next five years
- any structural problems the property may have
You are welcome to disagree with the price given for your home and can ask for an independent valuation by the District Valuer. This does have a downside that the Valuer may find the property worth more than specified and this will be the new price set for the property!
You have 12 weeks from receiving the notice to decide whether you want to purchase the property under this scheme. At this stage it is advisable to get independent financial and legal advice as well as getting a survey on the property.
