Information On The Law Relating To The Right To Buy Scheme
If you have been a tenant with your local Council, the armed services or a public body like an NHS trust you should be able to buy your home with the benefit of a discount.
If you used to rent from a Council but they sold out to a Housing Association whilst you were renting from them, you should still quality for discount.
What Discount Can I Get?
Since the 3rd April, 2012 if you have been a tenant for at least 5 years (this does not have to be continuous or in the same house) you should qualify for at least a 35% discount off the market value of your home (i.e. the price your house would sell for if you owned it). This increases by 2% for every further full year you have been a tenant, up to a maximum of 70% for a flat and 60% for a house.
You can make an application jointly with someone who is also a tenant with you, or with members of your family as long as they have lived with you for at least 12 months.
Qualifying To Buy
There are some conditions as follows:-
- The house must be your main home.
- It must be self contained (i.e. you do not share a kitchen or bathroom).
- If you owe money to creditors, are an undischarged bankrupt, or declared bankrupt or have a Court order against you saying you must leave your property you will not be able to buy through the Right to Buy scheme,
- If you have had a discount previously to buy a property then this might be deducted from your current Right to buy discount .
It is possible to obtain a Mortgage to assist with buying your house or flat and although we cannot advise you on the financial side, an Independent Financial Adviser would be able to give you advice on that to make sure you can afford to repay the Mortgage and pay the other bills and day to day expenses.
Selling The Property
You should also be aware that if your sell your house within 10 years of buying it you will have to offer to sell it back to the Council first, who, if they agree, will have to buy it from you for the market value as mentioned above. If they say they do not wish to buy it, you are then free to sell it to whoever you wish.
If you sell your house within 5 years of buying it from the Council, some of the discount will have to be repaid. The amount of the discount will depend on what percentage discount you received. It will reduce for every full year you have owned the property and will be a percentage of the market value when you sell. After 5 years you will not have to repay any discount.
Roskell Davies offer a completely free, no obligation initial enquiry service relating to Birmingham right to buy council housing issues. We understand that you want the solicitors who are right for you so we will gladly talk you through the process ahead of you. All legal costs will be discussed with you at the start so you have all the available options presented to you before you instruct us. With solicitors on our friendly team specialising in residential conveyancing, we hope we can help you today.
This is a very brief outline of the procedure involved. Gill Grice or Anne Jerome at Roskell Davies & Co. will be pleased to help you further with the legal aspects of buying a council house and you can contact them on 0800 142 2901 or complete an Online Enquiry.