Under the `Right to Buy` scheme, you may be able to buy your home at a price lower than the full market value. You may be entitled to a discount depending on the length of time you have been a tenant.
You may qualify if:
- you have been a secure or public sector tenant for three years
- you live in a house or bungalow which is not specifically designated for residents over the age of 65 (freehold)
- you live in a flat (option of buying a 125 year lease)
The property's value will depend on its size, and the market value of properties in the area. The amount of discount offered is capped at £78,600.
If you share part of your home with other properties (e.g. stairwell in a block of flats), you will usually have to pay a yearly service charge.
If you want to sell your home again within five years, you will have to repay some of the discount given:
|First year||The whole discount will be repayable|
|Second year||4/5 four fifths of the discount will be repayable|
|Third year||3/5 three fifths of the discount will b repayable|
|Fourth year||2/5 two fifths of the discount will be repayable|
|Fifth year||1/5 one fifth of the discount will be repayable|
|Sixth year||No repayment required|
The amounts to be repaid will be based on the resale value of the property and will not include the value of any improvements. There are some exemptions allowed - for example if the property is staying in the same family.