On this page:
The Right to Buy Scheme allows you to buy your council home at
a price lower than the full market value. This discount is
based on the number of years you have spent as a public sector
tenant.
If you wish to exercise your Right to Buy, it is recommended
that you seek independent legal and financial advice about your
individual circumstances and to help with the legal process of
buying a house.
Buying your home is probably the biggest financial decision
you will ever make, so take time to consider whether it is the
right choice for you. For example, if you exercise the Right
to Buy you will become responsible for all the costs of maintaining
your home, including routine repairs, major structural repairs and
improvements to it. If you become a leaseholder by buying
your flat, you will have to pay service charges and also meet the
costs of major repairs and refurbishment.
Who has the Right to Buy?
- If your tenancy started before 18th January
2005, you can apply if you are a secure
tenant of the council and have spent at least 2 years as a
public sector tenant.
- If your tenancy started after 18th January
2005, you can apply if you are a secure
tenant of the council and have spent at least 5 years as a
public sector tenant.
- You may be able to exercise the Right to Buy jointly with up to
three members of your family who have lived with you for the past
12 months, or with someone who is a joint tenant with you.
Can I buy my home if I am on benefits?
Yes, however 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 the housing costs, but
this is not usually payable for 39 weeks after you first claim
it.
Can I buy my home if I have rent arrears?
Yes, but we are 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. You cannot buy your home if a
court makes a possession order which says that you must leave your
home.
What discount would I be entitled to?
The amount of discount for which you are eligible depends on
the time or 'qualifying period' you have spent as a public sector
tenant.
- If your tenancy started before 18th January
2005, the discount available for houses is 32% rising by
1% for each extra year, up to a maximum of 60% (or £75,000,
whichever is reached first).
- The discount available for flats is 44% rising by 2% for each
extra year, up to a maximum of 70% (or £75,000, whichever is
reached first).
- If your tenancy started after 18th January
2005, the discount available for houses is 35% rising by
1% for each extra year, up to a maximum if 60% (or £75,000,
whichever is reached first).
- The discount available for flats is 50% rising by 2% for each
extra year, up to a maximum of 70% (or £75,000, whichever is
reached first).
The qualifying period for discount can include time spent in
different homes and with different landlords and this doesn't have
to be continuous. You may also be able to count a period
where your husband or wife was a public sector tenant or lived in
housing provided by the armed forces.
If you are buying jointly with someone who has a qualifying
period longer than yours, you will get the higher rate of
discount.
Can I sell my home once I have purchased under the Right to Buy
scheme?
If you have bought your home under the Right to Buy scheme,
you can sell it whenever you wish but if you applied for
the Right to Buy before 18th January 2005 and sell
within 3 years of buying it, the following applies:
- If you sell within the 1st year after your purchase,
the whole discount will have to be repaid.
- If you sell within the 2nd year, two thirds must be
repaid.
- If you sell within the 3rd year, one third will have
to be repaid.
- If you sell after the 3 years, no discount will need to be
repaid.
If you applied for the Right to Buy after
18th January 2005 and sell within 5 years of buying it
the following applies:
- If you sell within the 1st year after your purchase,
the whole discount will have to be repaid.
- If you sell within the 2nd year, four fifths must be
repaid.
- If you sell within the 3rd year, three fifths must
be repaid.
- If you sell within the 4th year, two fifths must be
repaid.
- If you sell within the 5th year, one fifth must be
repaid.
- If you sell after the 5 years, no discount will need to be
repaid.
- In addition, the amount of discount to be repaid if you sell
within 5 years will be a percentage of the resale value,
disregarding any improvements.
For example:
If your home was valued at £100,000 at purchase and you
received £20,000 discount, this means you received 20%
discount.
If you want to sell your home within the 2nd year
and the property is revalued at £150,000, you will have to repay
£150,000 x 20% x 4/5 = £24,000.
If you want to sell within 10 years of purchasing, you will be
required to offer the property either to your former landlord or
another social landlord in the area at full market price.
If you sell a flat, the person who buys it pays to take over
the remainder of the lease - so if you buy your home on a 125 year
lease and sell it after 15 years, the buyer will get a 110 year
lease.
What if I have purchased before?
If you have purchased before under the Right to Buy Scheme,
the amount of discount you got then will usually be deducted from
your discount when you buy again.
If the original discount was given to joint purchasers, then
the amount of reduction of discount for subsequent purchases is
divided by the number of people who originally shared it.
What's the difference between buying a flat and a house?
If you buy a house, you will purchase the freehold and will
own the property outright.
If you buy a flat, you will usually purchase a long
lease. This allows you and your successors to live in it
for a fixed time, usually 125 years. The block of flats will still
be owned by the Council and we will be responsible for the upkeep
of the building as a whole and any communal areas and
facilities.
What will I have to pay for after I have bought my
property?
You will need to consider taking out insurance for your home,
contents and mortgage.
If you buy a house, you will be responsible for all repairs
and maintenance.
If you buy a flat, you will have to pay the Council a nominal
rent, known as 'ground rent', of £10 per year and service charges
to cover the cost of major repairs, general maintenance and the
maintenance of communal areas. This could amount to several hundred
pounds if the block needs major repairs or maintenance, such as a
new roof.
How do I apply to buy my home?
Once completed the form should be returned to the
Housing Department, Cavendish House, 78 Duke Street, Barrow LA14
1RR. The form is used to decide whether you have the
right to buy and how much discount you will get.
You will received a notice (Form RTB2) telling you whether or
not you have the Right to Buy within four weeks from the date
on which we receive your application form (Form RTB1).
If we have agreed to sell your home to you, we will send you a
separate offer notice (Section 125 Notice) which tells you:
- The market value of the property at the time you submitted your
application (any improvements you have made to the property are not
taken into account).
- The discount you are entitled to.
- The price that you have to pay.
- The terms and conditions of sale.
This will be sent within a further eight weeks after you
have received your RTB2 form if you are buying a house, or within
12 weeks for a flat purchase.
I have received my Offer Notice (Section 125 Notice) what do I
do now?
Before you decide to buy, you should:
- Get an independent survey carried out by a qualified
surveyor. When you apply for a mortgage, the bank or building
society will have a survey done, but it is only to value your home
and it may not uncover any structural problems that may exist.
- Also, you should get some legal advice from a solicitor or
licensed conveyancer. If you don't know a solicitor or
licensed conveyancer, you might ask your landlord or bank or
building society to suggest one.
Your local library should also have a list of the solicitors in
your area and details of the type of work they do.
Always ask how much it will cost before you employ a solicitor
or licensed conveyancer.
You now have to decide whether you wish to proceed with the
Right to Buy and let us know in writing, within 12
weeks of receiving the Offer Notice (Section 125 Notice),
by completing the Notice of Intention form that accompanied
it.
What if I disagree with the price of my home?
You have the right to ask for a second independent valuation
from the District Valuer.
You must let us know that you want a determination of value
within 3 months of receiving the Offer Notice (Section 125
Notice).
You then have four weeks to put your
case to the District Valuer who will need to inspect your
home.
The District Valuer's valuation will be the one that counts,
even if it is higher than the original valuation,
you will still have to accept it or withdraw your application to
buy your home.
What if I don't let the Council know if I want to proceed with
the Right to Buy?
If we do not hear from you in time, we will send you a
reminder. If you do not reply within 28 days, we will assume
that you no longer wish to buy and your application will not be
dealt with any further.
What if I cannot decide whether to proceed with my Right to
Buy?
You can ask the Council for a bit longer before you reply to
the Offer Notice (Section 125 Notice).
If you are unable to decide for a good reason e.g. if you were
in hospital and could not return the form in time, you should
tell the Council and your time limit will be
extended automatically.
I have decided to proceed with the Right to Buy - what
happens next?
I
f you are happy with the terms for buying your home and have
arranged to raise the money then you should ask your solicitor for
advice on the legal documents and making your payment.
You should aim to let the Council know as soon as you are
ready to go ahead and buy. If we don't hear from you for a
long time, we may send you a warning notice asking you to
either complete the purchase within eight weeks or to
write and tell us that you disagree with the terms of the
sale.
The warning notice will be sent no earlier than three
months after the Offer Notice (Section 125 Notice).
If we still do not hear from you, we
may send a 2nd warning notice asking you to complete the
purchase. If you still do not complete the purchase then your
application will not be taken any further.
Can I change my mind about buying?
You don't have to buy your home just because you have told us
that you want to, you can change your mind and let us know in
writing if you no longer wish to proceed.
For Further Information
If you need advice and information on any aspects of the
Right to Buy Scheme, please contact the Housing Department on
(01229) 876478 or email:
housing@barrowbc.gov.uk or
write to us at the address given at the bottom of this
page.
Comprehensive information is also provided in these
Government leaflets:
Alternatively, you could access the Government's dedicated
Right to Buy website at www.communities.gov.uk/righttobuy. It
includes an eligibility quiz and discounts calculator to help
tenants understand whether they might be eligible and, if so, the
costs of buying and maintaining their home. Tenants can also
email the Government's Right to Buy Team if they have any further
questions on rtb@communities.gsi.gov.uk
Barrow Borough Council is required by law to protect the public
funds it administers. It may share information provided to it with
other bodies responsible for auditing or administering public
funds, in order to prevent and detect fraud. Further information on
this can be found at:
http://www.barrowbc.gov.uk/Default.aspx?page=5240