Right to buy discount
How we provide this service
Information on right to buy discount entitlement is supported by Legal and Member Services, Member Services.
Links to forms, leaflets and websites providing more information
Department for Communities and Local Government
Common Questions
Q. How much discount will I be allowed?
A. For a house : a minimum of 32% after 2 years tenancy, and an additional 1% for every additional year up to a maximum of 60% (with an upper limit of £24,000.00).
For a flat : a minimum of 44% after 2 years tenancy, and an additional 2% for every additional year up to a maximum of 70% (with an upper limit of £24,000.00).
Q. What tenancies count towards my discount?
A. Tenancies with any local authority or housing association, and other public bodies. You can ask us to confirm if the public body concerned is one that can be counted. Or, you can simply include it in your application, and we will check whether it can be counted.
Q. Does it make any difference that I have bought a council house before?
A. Yes, you will have been granted an amount of discount on that purchase, and unless you have repaid the discount, the discount on your current purchase will be reduced by any discount that you have been granted on another purchase.
Q. I want to borrow extra money but my lender says that I must ask the council. Why is this?
A. The discount that we give you is protected by a legal charge on your house (in the same way that the mortgage money from your lender is protected). If you fall into arrears with your mortgage, the lender is able to force the sale of your property (this is known as repossession). The lender gets first call on the money made by selling a repossessed council house ? but only for the purchase price, because the council comes next in line to recover the discount. If you want to borrow more than the purchase price, then often the lender will only agree to this if we will give them a written guarantee that we will not take back our discount until the lender has recovered all of the money it lent, not just the purchase price. We will only give this guarantee for very limited purposes ? mainly for improvement works to the house.
Q. If I sell my house, how much discount will I have to pay back to the council?
A. Applications received before 18 January 2005. If you sell within one year of buying, you will have to pay the full amount of the discount back. Between one year and two years, you will have to pay two-thirds of the discount back. Between two years and three years, you will have to pay one-third.
Applications received from 18 January 2005. If the property is sold during the five years following your purchase you will pay back to the Council a proportion of discount decreasing by one-fifth each year. The amount of discount repayable will be that percentage of the resale price which is equal to the discount which you have been given, and will be expressed as a percentage of the value of the property. However, any amount (if any) of the resale price which is attributable to improvements made to the property by you following completion of the purchase, will be disregarded.
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Contact Details
If you have any queries about the information provided above, or require further information, please contact Customer Services on 01775 761161 or email info@sholland.gov.uk.
Right to buy application
