Home Ownership for [……] Council Tenants

[Insert authors name] [Job title] [Team]

Home Ownershipfor [……] Council Tenants

Council or Housing Association tenants

Insert logo

What this presentation is about• What is Right to Buy

• A step-by-step guide to buying your home:Step One: Find out if you are eligible

Step Two: Work out the discount Step Three: Work out the costs get advice

Step Four: Fill in an application form Step Five: Receive an offer from your landlord

Step Six: Surveys, loans and more advice Step Seven: Complete your purchase

• Useful contacts

• Any questions?


Insert logo

• Right to Buy is a scheme that gives council tenants the opportunity to buy their homes at a discount.

• In April 2012 and March 2013, the top discount on Right to Buy was increased and now tenants can buy their home with up to a 70% discount.

• Two million homes have been bought under Right to Buy since 1980 when the scheme began.

What is Right to Buy?


Insert logo

Step One: Are you eligible?


You could be eligible for a Right to Buy discount if:

You are a council tenant – or have been a council tenant when your home was sold to your current landlord

You have been a tenant for at least 5 years

You don’t live in sheltered housing or other housingparticularly suitable for elderly or disabled people

The property is your only or main home.

Insert logo

Step Two: How much discount?

The level of discount depends on two things:

How long you have been a secure council tenant You must have been a tenant for five years or more (this doesn’t need to be continuous) and the discount goes up for every year over this

Whether you live in a house or a flat


Insert logo

Step Two: How much discount?

For a house:

•Discounts start at 35% after 5 years’ tenancy •Add 1% for each extra year that you have been a tenant, •Up to maximum 60% discount – or £75,000 (whichever is the lower).

For a flat:

• Discounts start at 50% of market value after 5 years’ tenancy• Add 2% for each extra year that you have been a tenant • Up to a maximum 70% discount – or £75,000 (whichever is the lower).


Insert logo

Some worked examples

Miss X is buying her flat

Current flat value: £120,000Years as a tenant: 10 years

Percentage discount: 60%(50% + 2% for each year over 5 years) Value of discount: £72,000

Price she will pay: £48,000(£120,000 less £72,000)

Example 1


NB. Discounts may be smaller if your landlord has carried out any major work on your property

Insert logo

Some worked examples

Mr and Mrs J are buying their house Current house value: £200,000Years as tenants: 10 years

Percentage discount: 40%(35% + 1% for each year over 5 years)Value of discount: £75,000 as £80,000 (40% of £200,000) is greater

Price they will pay: £125,000(£200,000 less £75,000)

Example 2


NB. Discounts may be smaller if your landlord has carried out any major work on your property

Insert logo

Step Three: Work out the costs

One-off purchase costs:

•Survey fees•Legal fees•Mortgage fees•Stamp duty

Ongoing costs:•Mortgage repayments•Service charges•Insurance payments•Living costs

Other:•Major repairs


Costs you need to think about.You should also compare with what you are paying now.

Insert logo

Mortgages

You will probably need to apply for a mortgage.

• A mortgage is a loan you take out over an agreed number of years and pay back with interest.

• Make sure you shop around and find the best deal for you. There are a wide variety of mortgage products on the market.

• Free advice is available but some people will charge a fee so always check costs upfront. Talk to our independent advisers here today, the Money Advice Service or Citizen Advice Bureau.


Insert logo

Make sure you seek advice as early as possible

Pick up a handy guide to mortgages from the Money Advice Service on the Right to Buy stand

Visit their website at www.moneyadviceservice.org.uk

Step Three: Seek advice


Insert logo

For more information on Right to Buy, visit the Right to Buy website at www.communities.gov.uk/righttobuy.

You will find some practical tools to help you work out if Right to Buy is for you, including an eligibility quiz and discount calculator.



Insert logo

Talk to the mortgage advisers from the Citizens Advice Bureau for free impartial advice, or visit www.adviceguide.org.uk



Insert logo

The Right to Buy application form is called RTB1

You can pick up a copy today – or download it from the Right to Buy website www.communities.gov.uk/righttobuy

Fill this in and send it by recorded delivery to your landlord.

For help with filling it in, speak to the housing officers here today.

Step Four: Fill in an application form


Insert logo

Step Five: Valuation and offer

Return the RTB1 form.

Your landlord will contact you to confirm you are eligible and to arrange for someone to come and value your home.

The landlord then has up to 12 weeks to send an offer letter for a flat and 8 weeks for a house

Your landlord will send you an offer notice within 8 weeks for a house (S125), setting out:

• the property value• discount• price you’ll pay• any structural problems they know about• terms and conditions.

For leasehold properties, you will also be given an estimate of service charges over the next 5 years.

You have up to 12 weeks to accept this offer.


Insert logo

Step Six: Surveys, loans and more advice

If you accept the offer, you will need to:

• get a survey done

• appoint a solicitor

• and apply for a mortgage

Talk to the advisers today for advice!


Insert logo

Congratulations – You are now a homeowner!


Insert logo

Useful ContactsFor more information

• Visit our stalls next door

• Visit www.moneyadviceservice.org.uk for financial advice

• Visit: www.adviceguide.org.uk for info about legal advice

• Visit our website [www…….]

• Call the [home ownership team on…………]

• Visit www.communities.gov.uk/righttobuy for more info on Right to Buy and how to apply


Insert logo

Any questions?


Insert logo

Home Ownership for [……] Council Tenants

Documents