Right to Buy

Right to Buy

As a tenant of the Council, you may wish to buy your home.

Have you ever thought about buying your home?

If you have been a tenant with Broxtowe Borough Council or another social landlord for three years or more (this does not have to be in a row), you could qualify to buy under the Right to Buy scheme.

You can share the Right to Buy jointly with family members over 18 years old who have lived with you for at least 12 months.

Property Exemptions

Certain types of property are exempt from Right to Buy:

  • Dwellings that are particularly suitable for elderly people
  • Certain dwellings for disabled people
  • Dwellings for persons of pensionable age
  • Properties that are scheduled for demolition

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Eligibility

You must be a secure tenant in order to be eligible for the Right to Buy.

Where a tenancy is in both names, both tenants must be named and sign the Right to Buy form even if they do not want to purchase.

Any tenant who is subject to one of the following will be not be allowed to join the scheme:

  • Possession order with a fixed date – including a Suspended Possession Order
  • Ground 2 Criminal Nuisance Order
  • Right to Buy Suspension Order
  • Bankruptcy Order
  • Demotion Order

Certain family members have the right to join the scheme, even if they are not tenants.

In order to family members to join, they must:

  • Be the spouse/partner of the tenant; or the tenant and that person live together as if they were husband and wife or civil partners, or the tenant’s parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew or niece live at the property as their only or principle home
  • Live at the property as their only or principle home
  • Have been living at the property for 12 months immediate preceding the date of application

Family members are automatically excluded if they are subject to any of the Court Orders listed above.

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Discount

The longer you have been a tenant, the more discount you are entitled to off the market value of the property. The current maximum discount is £80,900.

Examples of Discount (%) by Year 
 Years  Houses  Flats
3

35%

50%

5

35%

50%

10

40%

60%

15

45%

70%

20

50%

70%

25

55%

70%

30

60%

70%

35

65%

70%

40

70%

70%

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Buying a house

Discounts start at 35% from 3-5 years, and go up by 1% per year after year 6 up to a maximum of 70%, or the cash value of £80,900.

  • Current house value: £120,000
  • Years as a tenant: 20
  • Eligible discount: 50%
  • Discount value: £60,000
  • Price you pay for your house: £60,000

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Buying a flat

Discounts start at 50% for 3 to 5 years, at year 6 add on 2% for each extra year of tenancy up to 70% or the cash value of £80,900.

  • Current flat value: £80,000
  • Years as a tenant: 10
  • Eligible discount: 60%
  • Discount value: £48,000
  • Price you pay for your flat: £32,000

We cannot give out estimated valuations over the telephone, as an independent external valuer is instructed to value your home once your Right to Buy application has been accepted.

Only improvements made by you to the property will be disregarded in the valuation.

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Things to Consider

Once we have received your application, we will only carry out essential repairs and the property will be excluded from any planned maintenance works (such as a new bathroom or kitchen).

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Costs for tenants and homeowners

When you apply and your application is accepted, you should receive a letter from us within 8 weeks for a house (12 weeks for a flat) which will let you know how much you will need to pay the Council for your home.

If the price is right, you need to seriously consider the advantages and disadvantages of buying your home. Clearly you will not have rent to pay, you will not have a landlord and you will have a valuable investment. There are strong reasons to buy…. but you need to weigh up the costs of home ownership:

There will be initial one-off costs you will need to pay to your solicitor and lender for:

  • Legal fees
  • Survey fees
  • Valuation fees
  • Land Registry fees
  • Possibly Stamp Duty fees

 There will be other regular costs for:

  • Mortgage repayments
  • Property insurance
  • Council tax
  • Life assurance
  • Mortgage payment protection insurance

 You may need to finance major structural works. This can also include works to water, sewerage, gas, electricity or other utility services.

If you buy a flat you will need to pay an annual service charge to the Council likely to include:

  • Repairs to the building
  • Staircase/communal lighting
  • Building Insurance
  • Management costs
  • Grounds maintenance

 Purchasers of flats will also be expected to pay a contribution toward the cost of any improvements to the block and to pay an annual ground rent to the Council.

 As a tenant you may get Housing Benefit to help with your rent but as an owner you will receive no Housing Benefit to help with mortgage costs.

 If you are elderly and decide to buy, your home’s value may be taken into account in deciding whether you are eligible for financial help with the costs of  residential care, should you require it.

 If you decide to buy you will be likely to need a mortgage, a solicitor and a survey of your home.

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Getting a mortgage

Few people can buy their home with cash and the vast majority will need a mortgage.

You should talk to banks and building societies and generally shop around for the best deal as there are a great many competitive packages available. Details of the different types of mortgages can be obtained from the Financial Services Authority (0800 111 6768).

The Council does not offer a mortgage scheme.

YOU MAY LOSE YOUR HOME IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT!

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Appointing a solicitor

When you are happy with your mortgage and have submitted your application to your bank/building society you must get a legal representative. You should contact several solicitors and obtain quotations to include:

  • Solicitors Fees
  • Local Authority Searches
  • Mining Search
  • Bankruptcy/Land Registry Searches
  • Land Registry Fee
  • Government Stamp Duty

 It is always wise to compare quotations even if a solicitor has been recommended to you.

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Property survey

We would strongly advise that you have a property survey carried out by a qualified surveyor. This will incur costs.

There are three types generally:

  • Mortgage Valuation - All borrowers needing a mortgage will have a mortgage valuation carried out; it is really only a limited inspection providing the minimum information.
  • Homebuyers Report - This will provide information on the overall condition of a property and its market value. Major defects will be listed as well as any further investigations necessary.
  • Structural Survey - This will be a very detailed report on the structural conditions of your home which is essential for older properties or those in need of a lot of works. As well as faults, it reports on implications and costs of putting things right.

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Insurance

  • At the time of purchasing your home it is advisable to insure the following:
  • The building (unless your home is a flat)
  • Furniture and your belongings
  • Your life
  • The income of whoever pays the mortgage

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How to Apply

You can obtain an application form from the Council Offices Reception, or call the Right to Buy team for an information pack to be sent out to you.

Alternatively, you can visit the Government’s Right to Buy website (Opens in a New Window) where you will find a copy of the Right to Buy application form

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Delay Procedures

If you put in a Right to Buy application and believe the Council is delaying its progress, you may be entitled to some compensation. In this instance, please contact the Right to Buy team.

If you would like further information about the Right to Buy scheme or to book an appointment, please contact the Right to Buy team.

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Contact
Housing
tel: 0115 917 7777