Who is eligible for Right to Buy?

At present the The Right to Buy scheme has been abolished in Scotland and Wales but it is still available to those living in Northern Ireland and England.

To take advantage of this scheme you must meet a certain criteria which has been listed below:

• The property in question must be your only/main home.
• It must be self-contained and none of the rooms in the property can be shared with people outside of your household.
• A secure tenancy agreement must be in place between you and the Landlord – this is a legal contract and you must have been in the property for a minimum of 3 years (not always consecutively).
• I think it goes without saying that you must have no issues with Debt and must not be in Rent Arrears with your local Council.
• If you share your tenancy, a joint application can be made and it is also possible to apply with up to 3 members of your family providing that you have lived together in the property over the past 12 months. 

How do I get the ball rolling?

There are steps that need to be taken when approaching the task of purchasing your Council Home.  The first thing you’ll need to do is complete an RTB1 application form.  You can get one of these from https://www.gov.uk/right-to-buy-buying-your-council-home/applying

Once you have completed this form, making sure all sections are completed and it is signed by yourself, you will then need to send it to your Landlord.  It is advisable to send it by Recorded Delivery and follow up with a phone call to ensure this has been received. 

Your Landlord will need to give you a decision regarding whether they are willing to sell within four weeks of receiving the application.  The exception to this is if the Landlord has been your Landlord for less than 3 years, in this instance it may take up to 8 weeks.  They must also provide you with a reason why should they say no to your request.

If the decision by your Landlord is Yes they will send you an offer.  This MUST be sent to you within 8 weeks on a freehold property or 12 weeks if you’re buying a leasehold.  They will explain in their offer the price they are offering it you for, how that figure was decided along with the discount that they are offering.  They should also advise you of any issues that they know of with regards to the structural being of the property and an estimate of any service charges for the next 5 years if this is applicable.

Once the offer has been received by yourself you will have a 12 week period to decide if you wish to go ahead.  You also have the option to pull out and continue renting the property if you’d prefer.

What if I disagree with the Landlord's decision?

If you disagree with the offer and think that they have set your market value too high you will need to respond within a 3 month period and you will need to get an independent valuation.  They will send a District Valuer from HM Revenue & Customs (HMRC) who will visit and decide how much the property is worth. 

In the event of your Landlord not responding within the timeframes mentioned above you may be able to get a further reduction on the price.  To do this you will need to complete an Initial Notice of Delay form, RTB6.  You’ll need to send this to your Landlord, and they then must either move the sale along within one month or send you a 'counter notice'. The counter notice will say that it has already replied, or explain why it can't speed things up.

If your landlord doesn't reply within a month of getting the RTB6, fill in the 'Operative notice of delay' form (RTB8). This means any rent you pay while you're waiting to hear from your landlord could be taken off the sale price. You can do this each time your landlord is late getting back to you.

How much of a discount will I get?

Flats and Houses have different discount rules.  If you are wishing to purchase a House you will be given a 35% discount if you have been a Public Sector Tenant for between 3-5 years.  After 5 years the discount increases by 1% for each extra year that you’ve been a Tenant.  Should you qualify the maximum discount is £96,010 across England, except in London where the maximum is £127.940.  These figures increase each year in April in line with the consumer price index (CPI).

If you are purchasing a Flat the discount is 50% providing you have been a public sector tenant for between 3 and 5 years.  After 5 years, the discount goes up 2% for every extra year you’ve been a public sector tenant, up to a maximum of 70% or £96,010 across England and £127,940 in London boroughs (whichever is lower).

How is the discount calculated?

The following is taken into consideration:

• how long you’ve been a tenant with a public sector landlord
• the type of property you’re buying - a flat or house
• the value of your home

If you’re buying with someone else, you count the years of whoever’s been a public sector tenant the longest.

If successful and you sell the property within the first 5 years you must be aware that you may be required to re-pay some of the discount back.  Also be aware that if you sell the property within 10 years of the Right to Buy purchase, the council must be offered first refusal on the house.

Where you sell within the first year of ownership, you'll have to pay back ALL of the discount. After that, the total amount you pay back reduces to:

• 80% of the discount in the second year.
• 60% of the discount in the third year.
• 40% of the discount in the fourth year.
• 20% of the discount in the fifth year.

You may also get a smaller discount if you’ve used Right to Buy in the past.

Do I need to instruct a Solicitor to handle the purchase?

Yes you will need to instruct a Solictor as soon as your Right to Buy application has been accepted by your Local Authority.  It is important that you ensure that they are specialists or able to deal with Right to Buy purchases as it is a slightly different process to the usual way of buying a home.

How do I finance the purchase?

Like any House Purchase you will need to arrange a Mortgage to purchase your Council Home.

It’s important to research the type of Mortgage that will suit your needs.  This is a huge commitment and not one to be taken lightly so seeking professional help is something you will need to do.  Speak to a Mortgage Advisor for advice.  They will provide you with your options and work out what is best suited to your situation. 

If you are thinking of buying or selling your home, you may find some of these services useful: