Are you interested
in the right to buy
your home?
Right to Buy
www.yourphp.org.uk
Section 121(a) of the
Housing Act 1985
(as amended)
Statutory Instrument 2005 No. 1735
BCP Council has a duty to tell all secure
tenants about their Right to Buy the
property they live in. Already, more
than 5,000 secure Council tenants have
bought their home from BCP Council.
If you are thinking about exercising
your Right to Buy, there are a number
Most of BCP Council’s “secure” tenants in a
general needs property have the Right to Buy
their home. However, there are some exceptions
to this which relate to the people applying or the
property they live in.
Are you eligible?
What you need to do first
right2buy.php@bcpcouncil.gov.uk
Please look carefully at the back of this leaflet where the exceptions are set out in detail.
If you have lived in your general needs Poole Housing Partnership (PHP) property for three years, or have a qualifying previous tenancy with another local authority or housing association to bring your total tenancy period to three years, you may be able to purchase your home through the Government Right to Buy scheme.
If you would like us to send you an information pack with the application forms, then either phone or email on the details
below:-Email: or call:
However, before you complete and return the forms to PHP, you need to check if you would be able to afford such a venture, as you would if you were buying on the open market.
As PHP properties are all owned by BCP Council, to protect the Council’s assets we have to ensure that only genuine applications are made, and that our residents are able to finance and maintain such a purchase.
01202 118706or01202 817217
Who can help?
Who can buy their council home?
Therefore, we require residents to fill out three separate forms in order to carry out the checks required; one is the Government’s application form, known as an RTB1 and the others are an “Additional Eligibility Form” and an “Anti-Money Laundering Declaration”. These forms ask for information on any loans/debts you may have and require residents to provide written evidence on how they would fund a purchase.
If you are bankrupt or have an individual voluntary arrangement, debt recovery order or have arrangements with a creditor then you wouldn’t be eligible for Right to Buy, but may be able to apply at a later date when you’ve been able to clear these debts.
In order to complete the forms required, residents will also need to have an approximate value of the property, before the offer can be sent to them, and to do this we suggest you either visit a local estate agent or go on line to a site such as Rightmove, Zoopla, Nethouse Prices or similar, go to the sold tab and enter your postcode to see the sold prices of similar properties to the one you are living in and use this figure.
If a mortgage is required, we would need written evidence that this can be obtained which would need to be provided in the form of a Mortgage in Principle, Decision or Agreement in Principle, or similar we do not need a full mortgage offer. To work out an approximate idea of how much discount you would be entitled to, please see the next section.
Who can help?
Discount
The maximum discount on a house or flat is 70% but
the monetary figure will be capped. The Government
decides what the cap and discount entitlement is and
they review this annually.
https://righttobuy.gov.uk/right-to-buy-calculator/
For example, if the cap is £84,600 and your home is valued at £250,000 and you have 12 years tenancy, this would give you a 42% discount which would be £105,000, but in view of the cap you would receive the maximum discount of £84,600.
The discount after three years is 35% for houses and remains at 35% for the 4th and 5th year. There is then a further 1% for each additional complete year of confirmed tenancy.
The discount after three years is 50% for flats and maisonettes and remains at 50% for the 4th and 5th year. There is then a further 2% for each additional complete year of confirmed tenancy.
For an idea of the discount you can receive, use the Government calculator on the following
Who can help?
The Right to Buy Process
Once PHP has received your completed application
forms and supporting documents, they will send you
an acknowledgement letter, then within four weeks
the solicitors acting for PHP will send you a response
form (known as a RTB2) telling you whether or not you
have been accepted for the Right to Buy.
Valuation
In the meantime, checks will be carried out by PHP and BCP Council on all the forms received, including assessing how the purchase will be funded. You will have a visit from BCP Council and / or your Housing Officer (or our Leasehold Services Officer if the property is a flat).
Plans of the property and gardens, or communal areas for a flat, will be drawn up and checked. If there is not an Energy Performance Report on file then we will make an appointment for our contractor to come out and obtain this information which will tell you how energy efficient the property is and provide an Energy Performance Certificate.
An appointment will then be arranged for an independent company to come and value the property and check the plans supplied. Please note that any improvements you have made to the property will be disregarded for valuation purposes there is a section on the application form for you to include these.
Once this open market valuation report has been provided to PHP it will be checked along with any legal issues that may affect the value. The documents will then be circulated for approval by PHP and BCP Council before being returned to our solicitor.
If the property is a house and there are photovoltaic
(PV) panels installed on the roof, you will be given the
choice to purchase these outright at a discounted
price and this will be included on the offer notice.
An information sheet will also be sent to you and a letter from PHP explaining about the “feed in tariff” and what income you could expect to receive from the panels if you decide to purchase them. If you do not wish to purchase the panels, you must ensure PHP is advised and they will be removed before the sale of the property. Please note that PHP will need a minimum of three weeks notice for this to be arranged.
Who can help?
What happens after
the Offer Notice is Received?
Along with the offer notice from our solicitor you will
be sent a form asking if you wish to accept the offer,
decline it or require the property to be re-valued by
the District Valuer. You will need to complete this
accordingly and return it to PHP’s solicitor.
Repairs
If you accept the offer and want to continue with the sale, you must appoint a solicitor and they will contact PHP’s solicitor to arrange the final process of the sale.
Please note that, whilst a right to buy application is in process, you will be responsible for any repairs, other than those to keep the property “wind and water tight”. We will also ensure heating and hot water is supplied to the property.
Be Aware!
If you go ahead and purchase your property then
you need to be aware of two legislative “charges”
that will be put against your property at the Land
Registry:-•
•
PHP can provide an information pack on the “Right of First Refusal” on request.
If you sell the
property:-within 5 years, then a percentage of the discount will need to be repaid, this will be worked out based on the value of the property at the time you wish to sell and will be on a sliding scale down to 1/5th in year five;
additionally, within the first 10 years, the property has to
be offered back to BCP Council so that they have an opportunity to recoup their stock - legislation gives them 8 weeks to make a decision. This is known as the “Right of First Refusal”. An independent valuation will be undertaken, paid for by PHP and a survey will be carried out by a PHP surveyor in order to evaluate the costings to buy back the property. If BCP Council does not wish to purchase, or offer it to an alternative housing provider, then the resident is free to sell it on the open market.
Who can help?
What happens if the Sale is Delayed?
If at any time during the process you believe that PHP
is delaying the sale and have not complied with the
time limit, you may send them an “Initial Notice of
Delay” (Form RTB6).
Suspension of the Right to Buy Process
PHP must respond to this within one month with a “counter notice”. If this is not done or the necessary action to remedy the delay is not carried out, you may serve an “Operative Notice of Delay” (Form RTB8).
Any rent paid after the service of a valid RTB, and before the completion of the sale, may then be deducted from the purchase price.
Once you have accepted the offer notice, if there is any delay with the sale, PHP’s solicitor can serve you a “Prior Notice to Complete” requesting you to complete the sale within 8 weeks.
If you cannot do this and PHP’s solicitor sends you a “Final Notice to Complete” giving you a final 8 weeks to complete, and you do not complete within this period, then your application will be cancelled.
There are two circumstances where PHP may suspend your Right to Buy
application:-i) If there are proposals to demolish your home and BCP Council has served an Initial Demolition Notice, then the application may be suspended for 5 years. If the demolition does not take place in that time, you may complete the purchase on the original terms. However, if plans to demolish continue, then your Right to Buy that property will cease;
Your Solicitor
Valuation Fees and Mortgage Costs
Survey
Stamp Duty
You will need to appoint a solicitor who will act on your behalf to make sure that everything is done properly. You will have to pay for their time and for “disbursements”; costs that they incur on your behalf (e.g. local authority and Land registry searches);
PHP will not charge you when it arranges for an independent valuation to be carried out on your property, but if you are buying your property with a mortgage, then the mortgage company will probably want to carry out its own valuation and usually charge you for this.
Many mortgage companies also charge an “administration fee” for arranging the mortgage.
PHP will not carry out a survey of your property as a stock condition survey would already have been carried out, but it is recommended that residents arrange one themselves.
This is a tax on the sale of the property and is calculated as a percentage of the property’s value, less the discount. Stamp Duty is only payable on property values over a set level; your solicitor will be able to advise on the current level.
If Stamp Duty is applicable on the purchase, there is no invoice sent, your solicitor would arrange for the monies to be sent to HMRC along with the return form within 30 days of completion of the sale, if they don’t, HMRC will impose a fine for every day it is late.
Who can help?
What will I have to pay for
after I have bought my Home?
Although you will no longer pay rent to BCP Council,
you will have other financial
commitments:-• • • • • • •
You will have to pay the mortgage company at the rate you agreed with them when you took out your mortgage.
You will also have to pay the charges for any other loan you take out and which is secured on the property e.g. for home improvements. If you do not make payments as required by the mortgage/loan company, they can take action to repossess your home.
Your mortgage company may insist that you take out life insurance or mortgage protection insurance to cover the cost of your mortgage.
Your mortgage company will require that you insure the building against damage, unless the property is a flat or maisonette in which case the landlord, PHP, will arrange buildings insurance under its block policy. (This does not include contents insurance for which you remain responsible.)
You must continue to pay your Council Tax and your bills for gas, electricity, telephone etc. Home owners and leaseholders must pay water rates directly to the water company.
If you purchase your flat or maisonette, you will
become a leaseholder, however you will not own
the structure of the building or land that it is on.
There are two types of service
charge:-If you have any queries regarding leasehold properties (flats) please contact our Leasehold Services Officer on 01202 118488 or email leasehold.php@bcpcouncil.gov.uk.
You are therefore required to pay service charges for any services PHP provides to the building or land.
i) Annual (or Revenue) service charges are for things such as cleaning the communal areas or caretaking, grounds maintenance, heating and hot water (if your property is part of a communal heating system), as well as buildings insurance. If you apply for the Right to Buy, PHP will let you know what your estimated annual service charges are.
ii) Major Works (or Capital) charges are for any large scale repairs PHP may carry out to the block, such as redecoration, renewing the roof, replacing windows, renewing water tanks, rewiring the landlord’s electrical supply, etc. If you apply for the Right to Buy, PHP will let you know what major works it expects to carry out in the next five years and give you an estimate of your contribution. Remember, if you do not pay your service charges without good reason, PHP could ask the county court for a money judgement against you (CCJ) which may affect your future ability to obtain credit. You will be responsible for repairing and decorating the inside of your home. Things that PHP might have done for you as a tenant, e.g. replacing individual hot water boilers, kitchen units and bathroom fittings, repairing the electrical wiring or plumbing, will now be your responsibility.
Who can help?
Freehold Purchase of a House
With houses and bungalows you will become a
freeholder instead of a leaseholder and you will own
both the building and the land that your home is on.
Circumstances under which you do not
have the Right to Buy
a) You do not have the Right to Buy your property if: •
•
• •
As a freeholder, you will be responsible for looking after both the inside and outside of your home, including any garden and fences sold with your home. You will not have to pay service charges, unless your property is on an estate where there may be a grounds maintenance charge.
The tenants applying have not held a qualifying tenancy for at least three years prior to receipt by PHP of the application (Form RTB1);
A joint tenancy exists and at least one tenant doesn’t wish to buy the property, (unless the other tenant gives written consent to the purchase);
b) BCP Council Properties which cannot be sold under the Right to Buy: • • • • • • • • • •
Those where BCP Council do not own the freehold or does not have a lease of more than 21 years remaining where the home is a house, or 50 years where the home is a flat;
The property forms part of, or is within the enclosure of, a building which is held mainly for purposes other than housing or is situated in a cemetery;
The property was provided to you or your predecessor as part of a job;
The home is one of a group of homes generally let to people of a pensionable age or who have a disability, and special services or facilities are provided to them (e.g. a Sheltered Housing Officer, a system for calling them and the use of a common room close by); The home is one of a group of homes generally let to people who are suffering, or who have suffered, from a mental disorder, and special services or facilities are provided to them (e.g. Social Services);
The home is particularly suitable for occupation by people of pensionable age or who are physically disabled, and was let with these groups in mind;
Homes in respect of which a final demolition notice has been served;
Homes which BCP Council has leased from someone else, and which have to be given up empty when the owner wants them; Almshouses;
Further information
www.yourphp.org.uk
Or from the Government on the following website links:
General information: Application form:
https://righttobuy.gov.uk/
https://www.gov.uk/government/publications/notice-claiming-the-right-to-buy--2
Printed: February 2021
Further information can be obtained
from Poole Housing Partnership:
Email Tel
