Right To Buy

The Right to Buy scheme allows most council tenants to buy their council home at a discount. Tenants can apply to purchase their council property if:

• It is their main or only home;
• It is self-contained;
• They are a secure tenant;
• They had a public sector landlord (for example a council, housing association or NHS Trust) for 3 years.

However, consideration needs to be made before proceeding as owning a home also brings some added responsibilities. For example, you may need a mortgage to assist with the purchase and you will therefore need to be able to meet the mortgage repayments as and when they fall due.

You will also 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 or leasehold house, you will have to pay service charges each year, and may also have to meet the costs of major repairs and refurbishment which can be substantial.

If you purchase your home under the Right to Buy, you can sell it whenever you like but if you sell within the discount repayment period you will usually have to repay some or all of the discount obtained. If you sell within the first year of purchase, the whole discount will have to be repaid. Four fifths must be repaid if you sell in the second year, three fifths in the third year, two fifths in the fourth year and one fifth in the fifth year. After five years, you can sell without repaying any discount. In addition, the amount of discount to be repaid if you sell within five years of purchase will be a percentage of the resale value of the property, disregarding the value of any improvements

Certain sales or transfers are, however, exempt from the requirement to repay discount, for example transfers between certain family members.

Here at Mullis & Peake LLP we can guide you through the process of your purchase and explain to you any liabilities that you will be subject to.