Right to Buy your home

Transcription

1 Right to Buy your home Plymouth Community Homes tenant s may have the right to buy the home they rent at a discounted price through the Right to Buy scheme. The Right to Buy scheme is a Government back scheme that allows some tenants to buy their home at a discounted price. The maximum discount is currently up to 77,000 in Plymouth. Housing association tenants may also qualify if they were originally council tenants and their tenancy has been transferred to a housing association. If you qualify for the 'right to buy' you can buy your home jointly with a joint tenant, or with up to three family members who have lived in your home for at least the last 12 months and is 18 or over in age. If your secure tenancy was in existence after 18 January 2005, or you were a public sector tenant after 18 January 2005, you do not have the Right to Buy until you have spent at least five years as a public sector tenant, However you do have the Right to Acquire. Please refer to the Right to Acquire scheme on Plymouth Community homes web page. Qualifying for the right to buy your home To qualify for the right to buy you must be a PCH tenant, and must have been a social housing tenant for at least five years. The five years doesn't have to be all at once, and your time spent at any of the following could be considered: a council tenant a housing association tenant an armed forces tenant a tenant of a public body such as the NHS. Some properties don't qualify for the right to acquire: your home has been designed or adapted for people with special needs your home is particularly suitable, having regard to its location, size, design, heating system and other features, for occupation by elderly persons. your home is provided as part of your job (for example, if you are a caretaker)y you live in sheltered housing where services are provided your home has been designed or adapted for people with special needs You may not be entitled to buy your home under the right to buy if: the property isn't your only or main home your home isn't self-contained (e.g. you share a kitchen or bathroom)

2 you are bankrupt or threatened with bankruptcy or have other serious money problems If you are in breach of a Notice of Seeking Possession If your property is set aside for elderly or disabled people We will be able to advise you or your home qualifies. Right to buy homes transferred to housing associations If your home was transferred from the Council to Plymouth Community Homes (PCH) in 2009, you probably still have the right to buy. This is called the 'preserved' right to buy. You can use form RTB1 to apply to us. Applying for the right to buy To apply for the right to buy, you will need to complete a Right to buy Application form RTB 1 or ask us for the form. After you apply, we have to tell you if you are eligible we will give you a decision within four weeks. If any former tenancies have to be confirmed from other organisation s a further 4 weeks is permitted before we respond to you. During this time we will undertake the following: Verification that the property is not exempt from being sold Obtain photographic proof of ID i.e passport, driving licence or National Insurance ID card from the applicant Home or office visit to verify applicants living at property and any home improvements carried out to the property We will then arrange for a valuation of your home to be undertaken by a Royal Institute of Chartered Surveyors valuer. The valuer will contact you directly to arrange an appointment. Once the valuation report has been received we will confirm your qualifying time and the discount that will be awarded to you, by way of formal notice known as S125. This will include: the terms and conditions of the sale the market value of the property the discount you will get and how it is calculated if the property is a flat, an estimate of the service charges you will have to pay details of any structural problems that PCH are aware of. If we confirm you don't have the right to buy your home, we will give you a reason. you have the right to appeal if you think this decision is wrong. Discounts on homes bought using the right to buy If you qualify for the right to buy, the valuer will assess what the property is worth and you will be offered the opportunity to buy it at a reduced price. The Government sets the maximum discount on the sale price. The amount of discount you get depends on you as the applicant how long you have been a tenant.

3 The costs of buying your home To get an indication of the open market value of your home search for values of property sold in the last 6 months in your street through web based searches. This can help you understand the approximate value of your home for mortgage purposes. Unless you have the money to buy your home, you will have to get a mortgage from a bank or building society. You may also need to fund a deposit and pay the costs involved in buying a home. The costs of your mortgage may vary over time as interest rates change or you apply for new mortgage deals. As a home-owner, you'll have to budget for the costs of emergency and long term repairs and improvements to your home. If you buy a flat you are likely to be a leaseholder and may have to budget for service charges and repair costs for communal areas as well as for your own flat. You'll also need to budget for the costs of running your home It's important to consider how you will manage if your circumstances change. If you are out of work for example, you won't be eligible for housing benefit, but may be able to claim Support for Mortgage Interest payments as part of certain other benefits; however you may only be able to claim this for a limited time. Risks of repair costs for communal areas When you purchase your home you will be liable for repairing and maintaining the property and grounds. Repair and maintenance costs of flats can be very expensive. You are unlikely to just be responsible for the costs of repairs to your own home you are also likely to have to contribute towards the cost of repairs and improvements to the communal areas of your block of flats and sometimes on your estate. Sometimes buyers also have to contribute to the costs of communal areas. These charges can be very expensive, especially if PCH plans to do works to improve the standard of housing. You may have to budget for additional loans or mortgages to fund these types of repairs. We have a legal duty to tell you about the cost of repairs and improvements before you buy a leasehold flat, and anytime afterwards when repairs are planned. However, the estimate of the costs involved may be lower than the final bill. Selling a home bought using the right to buy If you decide to sell your home within the first five years (or it is repossessed by your mortgage lender during that time) you will have to repay some or all of the discount that has been awarded to you. If you need any support in completing your application form or you need any further information. Please contact the Residential Sales Advisor on telephone number

4 To find out more information regarding the Right to Buy scheme please go to the Government website

5 RTB6 (From tenant) Application received from tenant RTB2 sent to tenant 4 weeks from application received. (8 weeks if you have been a a tenant with this landlord for less than 2 years If tenant disagrees with valuation (s)he has 12 weeks to appeal to District Valuer. Form available from RTB Officer at PCH. Valuation to take place within 2 weeks of PCH sending out RTB2 subject to access availability. RTB PCH to reply within 1 month Landlord's Offer Notice within 8 weeks (house) or 12 weeks (flat) of date of RTB2 Reminder sent to tenant for return of S125 within 1 week of due date RTB8 (From tenant) Tenant must return of Sale of Dwellings form within 12 weeks of date of Landlord's Offer Notice (Statutory) Request conveyancing plans and EPC. Both returned witin 2 weeks Timing for EPC subject to access availabilty Application withdrawn 28 days from return due date If sale has stalled tenant will be sent an S140. After 56 days a final request to complete will be sent (S141) Possible reasonable extension if requested RTB Officer to instruct solicitor within 2 weeks of receiving plans and EPC S141 sent to tenant. (S)he then has 56 days to complete their purchase Completion 8 weeks subject to the legal process Cancellation of sale