THREE RIVERS HOUSING GROUP

Home Ownership

Right to buy

Right to buy

How does it work?
You may have the Right to Buy if you are a secure, protected or fair rent tenant and the property is your only home. The qualifying period is 2 years for tenancies that started before 18 January 2005 and 5 years for those that started after that date.
You may be able to exercise the Right to Buy jointly with members of your family who have lived with you for the past 12 months or with someone who is a joint tenant with you. If your tenancy is in joint names, all tenants must indicate if they wish to purchase the property or not.

When can a Right to Buy application be refused:

If you have one or more of the following issues:

Rent arrears leading to a possession notice
Demolition notice
Bankruptcy
Anti-Social Behaviour
Notice order seeking possession
Elderly People - Information is available in the denial of Right to Buy leaflet. This leaflet is for tenants who have sought to exercise the right to buy but have been denied on the grounds that their homes are particularly suitable for occupation by elderly people.

For more information on any of the above, please contact our Home Ownership Team on 0191 375 3729 or email pauline.neave@threerivershousing.co.uk]

How much discount will you receive?
Discount is calculated differently for houses and flats.
Houses – the minimum discount is 32% if your tenancy is at least 2 years and increases by 1% for each additional year to a maximum of 60%
Flats – the minimum discount is 44% if your tenancy is at least 2 years and increases by 2% for each additional year to a maximum of 70%
BUT – your discount cannot be greater than the maximum regional discount of £22,000.

Right to Buy Process
STEP 1 – APPLICATION
The first step is to get an application form (RTB 1). You can get the RTB 1 by ringing 0191 375 3729 or email pauline.neave@threerivershousing.co.uk
If you require assistance in completing the application form or have any questions regarding the Right to Buy, please contact us on the number above. Once you have completed the form you need to return it to Three Rivers Housing Association.
STEP 2 – ACKNOWLEDGEMENT OF RIGHT TO BUY APPLICATION
When we receive your application we must send you a notice (form RTB 2) advising you whether or not you have the Right to Buy, within 4 weeks (or 8 weeks if you have been a tenant with the Association for less than 2 years). If you don’t have the Right to Buy the Association must tell you why. If the reason is because the property was first let before 1st January 1990 and - is particularly suitable for occupation by elderly persons and - was let for occupation by a person aged 60 or more you may ask a residential property tribunal to decide whether the decision was correct, but you must do this within 56 days of your refusal:

If you were denied the Right to Buy for any other reason then you do not have a right of appeal but can get further advice from the Citizens Advice Bureau or from your own Solicitor.

STEP 3 – VALUATION AND OFFER NOTICE

A description of the property you are buying
The valuation of the property
The discount you will receive off the market value
How much you will have to pay
Details of any cost floor (minimum purchase price)
Estimates of the ongoing service charges or improvement costs (if your property is a flat or maisonette)
Details of any structural defects (that the Association is aware of)
The terms and conditions of the sale

STEP 4 – RIGHT TO REQUEST A RE-VALUATION
If you are unhappy with the valuation you can apply for an independent valuation from the District Valuer. You must tell the Association, in writing, within 3 months of receiving your Offer Notice (Section 125) that you are requesting a re-determination of your valuation. The Association will then notify the District Valuer and a further valuation will be carried out. An amended Offer Notice will be sent to you if the valuation is changed. You must then tell the Association whether you wish to go ahead with the purchase within 12 weeks of receiving the amended Offer Notice.

It is important to note that the District Valuer’s decision is final, even if the valuation is higher than the Associations.

If you have any other queries relating to your Offer Notice you should contact the Home Ownership Team on 0191 375 3729 or email pauline.neave@threerivershousing.co.uk

STEP 5 – DECISION TO BUY OR NOT
Following the receipt of your offer notice and before deciding whether to buy you should get an independent survey from a qualified surveyor and legal advice. If you decide to proceed you must inform the Home Ownership Team on 0191 375 3729 or email pauline.neave@threerivershousing.co.uk within 3 months of receiving your Offer Notice, telling them the name and address of your solicitor. We will provide you with a form for you to do this.

If you decide not to go ahead with the purchase you must inform the Home Ownership Team on 0191 375 3729 or email pauline.neave@threerivershousing.co.uk If you don’t do this within 3 months they will send you a reminder. If you don’t reply to this within 28 days your application will be cancelled.

STEP 6 – ARRANGING A MORTGAGE
If you need a mortgage, this is the time you should talk to a bank or building society. We aim to make access to the Right to Buy as easy as possible for everyone. .

STEP 7 – COMPLETING THE PURCHASE
When you advise the Association that you want to go ahead with the Right to Buy of your home, we will arrange for layout plans of your property to be drawn up and prepare the legal documentation to be forwarded to your solicitor, who will contact you to arrange completion of the legal paperwork.

Your solicitor will arrange a date for you to complete the purchase with the Association. To avoid delays you must ensure that your rent account is clear of any outstanding debt prior to this date.

If the Association does not hear from you or your solicitor they may send you a warning notice asking you to complete the purchase within the next 8 weeks or to write to say if you disagree with the terms of the sale. If the completion does not take place they may send you a further notice asking you to complete. If you do not reply your application will be cancelled.
If other aspects of your tenancy change, such as antisocial behaviour, demolition notices or bankruptcy, then the Association will not complete your purchase.

STEP 8 – DELAY PROCEDURE
If the Association fails to issue any of the above documents within the specified deadlines you can serve an 'Initial Notice of Delay' (form RTB 6). The Association must respond with a counter notice giving an explanation for the delay or issuing the relevant form within 30 days.

If the Association does not send a counter notice within 30 days, you can then send an 'operative notice of delay’ (form RTB 8) which means the rent you pay while the delay goes on will be taken off the price you have to pay for your home.
You can get these forms by ringing 0191 375 3729 or email pauline.neave@threerivershousing.co.uk

Buying a Flat or Maisonette
If you buy a house, you will purchase the freehold and will own the property outright. If you buy a flat or maisonette, you will usually purchase a long lease, which allows you and your successors to live in it for a fixed time, usually 125 years. The block of flats will still be owned by the Association who will be responsible for the upkeep of the building and for any communal areas and facilities.
Issues to consider before buying your flat or maisonette :
If you buy your flat or maisonette you become a ‘leaseholder’. Every year you will have to pay a nominal rent (known as ground rent) plus a share of the costs of managing the block. As well as this you will have to pay ‘service charges’ which include annual charges for day to day maintenance and major works. Service charges could amount to several hundred pounds each year or more if the block needs major repairs.
Your share is determined by the number of flats in the block. When applying to purchase your flat the Association must give you an estimate of the service charges you will have to pay during the first 5 years and cannot charge you more except for inflation. You will have to pay service charges every year you own the property and may also have to pay for some of the costs of major works carried out after the first 5 years.
Service charges are paid every 3 months in advance.

Selling Your Home:
If you applied to buy your property before 18 January 2005 and you intend to sell or dispose of it within 3 years from the purchase date you will be required to repay discount. If you sell within the first year of purchase the whole discount will have to be repaid. If you sell within the second year two thirds must be repaid and one third within the third year. After 3 years you can sell without repaying any discount. If you applied to purchase your property on or after 18 January 2005 and you intend to sell or dispose of your property within 5 years from the date of your purchase you will be required to pay back discount. If you sell within the first year of purchase the whole discount will have to be repaid. Four fifths must be repaid if you sell in the second year, three fifths in the third year, two fifths in the fourth year and one fifth in the fifth year. After 5 years you can sell without repaying any discount. In addition, the amount of discount to be repaid if you sell within 5 years of purchase will be a percentage of the resale value of the property, disregarding the value of any improvements.

Right of First Refusal:
If you purchased your home after 18 January 2005 and decide to sell within 10 years, the Association have right of first refusal to buy back your property. The Association do not have the right of first refusal on properties sold before 18 January 2005.

Click on the link below to download the Right to Buy FAQ. You will need to download Acrobat Reader to view the document.

Download Right to Buy FAQ (pdf)

STEP 6 – ARRANGING A MORTGAGE If you need a mortgage, this is the time you should talk to a bank or building society. We aim to make access to the Right to Buy as easy as possible for everyone. .

Right of First Refusal: If you purchased your home after 18 January 2005 and decide to sell within 10 years, the Association have right of first refusal to buy back your property. The Association do not have the right of first refusal on properties sold before 18 January 2005.

STEP 6 – ARRANGING A MORTGAGE
If you need a mortgage, this is the time you should talk to a bank or building society. We aim to make access to the Right to Buy as easy as possible for everyone. .

Right of First Refusal:
If you purchased your home after 18 January 2005 and decide to sell within 10 years, the Association have right of first refusal to buy back your property. The Association do not have the right of first refusal on properties sold before 18 January 2005.