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Home ownership service - right to buy

Hambleton District Council do not operate a Right to Buy policy as they are a Large Scale Voluntary Transfer (LSVT) Authority who disposed of all of their housing stock to Broadacres Housing Association Opens in a new window in 1993. However, ex-council tenants who were part of the transfer process retained the right to purchase their homes.

For more information contact Broadacres Housing Association, Broadacres House, Mount View, Standard Way, Northallerton, North Yorkshire, DL6 2YD - Tel 0800 587 5291 or the Housing Team, Hambleton District Council, Civic Centre, Stone Cross, Northallerton, DL6 2UU Tel 0845 12 11 555 or email housing@hambleton.gov.uk, Tel 0845 12 11 555.

Right to Buy Scheme

Are you eligible?
If your were a secure tenant of a local authority and the ownership of your property was transferred to a housing association you may be eligible for a Preserved Right to Buy (PRTB) for your property. This will only apply if you are still the tenant of the same property before and after the transfer.

You do not have the right to buy if:

• you are an assured tenant of a registered social landlord (RSL) and do not possess a PRTB
• your home is rented in relation to your employment
• the courts have issued a possession order for you to leave your home
• you are undergoing bankruptcy proceedings
• you live in housing specially provided for older people and (in certain cases) disabled people

Discounts available

The amount of discount depends on how long you have been a tenant. For example if you have lived in a house for five years the discount is 35 per cent of the market value of your house. If you have lived in a house for 20 years the discount is 50 per cent.

However, the discount is limited to the maximum amount available for your area. The maximum discount ranges from £16,000 to £38,000 for both flats and houses depending on where you live. To find out about the discount available contact your landlord.

If you sell the property within five years of buying it, you may have to pay back the discount.

Buying your home is a major financial commitment which will involve immediate one-off costs such as legal fees and Stamp Duty Land Tax as well as new ongoing costs such as paying the mortgage, repairs and service charges.

How to apply and next steps
Contact your landlord for an application form and who will make a decision about whether you qualify for the Right to Buy for your current property

If you do you will be sent a letter, called a Section 125 notice outlining:

• the price the landlord thinks you should pay for the property
• the discount you are eligible for
• estimates of service charges and improvement costs you are likely to pay in the next five years
• any structural problems the property may have
• terms and conditions of the sale

If you disagree with the price given for your home you can ask for an independent valuation by the District Valuer. However, the Valuer's decision is final so if it is found that the value of your house is higher than the original price your landlord is asking for, you must stick to it.

You must make your decision about whether you want to go ahead with buying the property within 12 weeks of receiving the notice.

At this stage it is advisable to get independent financial and legal advice as well as getting a survey.

 

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Right to Acquire Scheme

The Right to Acquire scheme gives eligible tenants of registered social landlords the right to buy their property from their landlord at a discount. Buying a home is a long term financial commitment so always make sure you get independent financial and legal advice before you make the decision.

Are you eligible?

You may be if you:

• are a secure or assured tenant
• have been a public sector tenant for at least two years or five years if you became a public sector tenant after 18 January 2005

And you live in:

• a qualifying property registered with the Housing Corporation as a Registered Social Landlord
• a property that was built or acquired by a housing association, both charitable and non-charitable, with public funds from 01 April 1997 onwards
• a property that was transferred from a local authority to a housing association after 1 April 1997

You may be classified as a public sector tenant if you have previously lived in properties provided by your local authority, the Armed services, fire service or police authority.

For the full list of bodies which may make you eligible contact the Housing Association's helpline 0845 230 7000

You will not be eligible if

• you are a council tenant
• the courts have issued a possession order for you to leave your home
• you are undergoing bankruptcy proceedings
• you live in housing specially provided for older people and (in certain cases) disabled people

Discounts available

Discounts range from £9,000 to £16,000 depending on where you live

If you applied to the scheme after 18th January 2005, and decide you want to sell the property within five years of buying it you will have to repay some or all your discount - the amount you repay depends on the how long after you got the discount you want to sell.

• if you decide to sell your property after five years you will not have to pay the discount back.
• if you decide to sell your property within 10 years then you will have to offer the property to your landlord first at market value - if your landlord doesn't want it then you are free to sell the property on the open market.

 

Time when property sold	Amount of discount to be repaid
Within 1 year	100%
Within 2 years	80%
Within 3 years	60%
Within 4 years	40%
Within 5 years	20%

 

How to apply and next steps

Contact your landlord for an application form and who will make a decision about whether you qualify for the Right to Acquire for your current property or an alternative property.

If the alternative property is in another area you may qualify for a different discount. You don't have to accept the alternative property and your landlord doesn't have to offer you an alternative property.

If you do qualify, your landlord will send you a notice outlining:

• a description of the property and any land included in the price
• details of your discount and how it has been calculated
• the price the landlord thinks you should pay for the property and how this has been calculated
• estimates of any service charges
• any structural problems the property may have
• terms and conditions of the sale

If you disagree with the price given for your home you can ask for an independent valuation by the District Valuer. However, the Valuer's decision is final so if it is found that the value of your house is higher than the one given by your landlord you must stick to it.

Buying your home

You must make your decision about whether you want to go ahead with buying the property within three months of receiving the notice.

It is advisable to get independent financial and legal advice as well as getting a survey. You may need to arrange a mortgage to pay for the property and you will need a legal representative to help you draw up contracts.

There are many additional cost's involved in both the home - buying process and owning a home. Read 'Planning for buying a home' to help you estimate some the costs involved.