This webpage tells you about whether you have the right to buy your home and how to get more information to help you make that decision.
Deciding to buy your home is one of the biggest financial decisions you will ever make, and it is a decision that needs careful thought. Here are some of the things you need to think about when deciding whether to go ahead:
- If you exercise your Right to Buy you will become responsible for all the costs of maintaining your home, including routine repairs, major structural repairs, and improvements to it. If you become a leaseholder by buying your flat, you will have to pay service charges each year, and also meet the costs of major repairs and refurbishment.
- Other costs involved: mortgage repayments; mortgage protection insurance if you fall ill or lose your job; Life assurance to enable your family to pay off the mortgage if you die; contents insurance against the risk of theft, fire, flood or other accidents; council tax and water rates; gas, electricity, telephone etc. Ground rent and service charges may apply.
- The process of buying a house is also costly, as you may need to pay for: a solicitor or licensed conveyancer; an independent survey: the mortgage to be arranged; the Land Registry fee; stamp duty (if applicable).
- Are you eligible for Housing Benefit? Remember, if you own your home you will not receive any housing benefit to help with your mortgage costs . You may be entitled to income support to help with the cost, but this is not usually payable for 39 weeks after you first claim it.
- If you are elderly and own your own home, its value may be taken into account in assessing whether you are eligible for financial help with the costs of residential care.
- If your are approached by a person or company offering to help to buy your home, check out what’s in it for them and talk to your landlord before signing up to any deal.
- Some companies offer tenants money up front in a deal under which the company ends up owning the property. But it is not always good for tenants, because the money they get may not be enough to buy another home. Some tenants have found themselves homeless after agreeing to such deals.
- If you want to talk your decision over with someone, you can get free advice from our “Right to Buy” team on 01744 675735 / 38 / 34
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The Housing Act 2004 makes further changes to the Right to Buy rules. From 18 January 2005 :
- The initial qualification period was extended from 2 years to 5 years for new tenants.
- The discount repayment period was extended from 3 years to 5 years.
- The amount of discount to be repaid if a property is resold within 5 years is now a percentage of the market value of the property when it is resold.
- The Right to Buy is suspended where an initial demolition notice has been served and ends where a final demolition notice is served.
- Tenants who agree to sell their home to a third party during the discount repayment period must repay some or all of their discount as if they had actually sold their home at the time of the agreement.
- Owners who wish to resell their home within 10 years of it having been sold under the Right to Buy must first offer it at market value to their former landlord or to another body prescribed by the Secretary of State.
- Landlords can serve a notice after 3 months requiring a tenant to complete their Right to Buy purchase instead of after 12 months.
- Tenants will no longer be able to choose to Buy on Rent to Mortgage terms after 17th July 2005.
- Landlords must give tenants information on the costs and responsibilities of home ownership.
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The Right to Buy scheme gives tenants a discount on the market value of their homes. The longer you have been a tenant, the more discount you get, up to a maximum limit that varies depending on where you live: £26,000 in the North West (with the exception of the Right to Acquire ).
Your discount may be reduced if Helena Housing has spent money on purchasing, building, repairing or maintaining your property over the last ten years. You cannot buy your home for less than the money spent by your landlord over the previous ten years. If we have spent more than the market value of your home, you will not receive any discount.
This also applies to Preserved Right to Buy but takes into account works previously done on the property by the landlord over 15-16 years and may include acquisition and building costs.
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- Homes suitable for the elderly. You may be refused to buy the property on the grounds that your home is particularly suitable for occupation by elderly people. Tenants have the right to request a review within 56 days after the landlord has refused to sell your home.
- Homes due to be demolished. Where an initial demolition notice is served the Right to Buy is suspended. If a final demolition notice is served, then any existing Right to Buy claims are ended and no new applications can be made.
- Sheltered housing for the elderly, the physically disabled, the mentally ill or the mentally disabled.
- Houses and flats on land which has been bought for development, and which is being used as temporary housing before the land has been developed.
- Tenancies of employees who live in homes owned by their employers to be near work.
- Tenancies of employees whose home is inside the boundaries of a school, a social service home, another type of operational building or cemetery.
- Tenancies of members of a police force whose homes have been provided free from rent and rates.
- Tenancies of fire authority employees who have to live near to the station they work and whose home have been provided by the employer.
- Temporary letting (of up to 3 years) of homes usually let to employees mentioned above.
- Some homes which are let as part of business or agricultural premises (e.g.; public houses, farms, shops).
- Homes which the landlord has leased from someone else and which have to be given up empty when the owner wants them.
- Almshouses
- Homes which are let by a charitable social landlord, a charitable housing trust or association.
- Tenancies given to students so they can follow certain full time courses at university or college.
- Tenancies of people moving into the area from another district to take up a job and given a home temporarily while they look for a permanent home.
- Tenancies for homeless people secured under Section 193 of the Housing Act 1996.
- The tenancies of people who used to be squatters but have now been given a fixed license to occupy a home.
- Long fixed-term leases (of over 21 years)
- Temporary lettings to people who were not secure tenants in their previous homes which are being improved or repaired.
- Where a Suspended Possession Order has been obtained against your property, as a result of a breach of tenancy including rent arrears, and is subsequently breached.
- Where there are certain bankruptcy proceedings i.e.: the person, or one of the persons, has a bankruptcy petition pending against him/her; has a receiving order in force against him/her; is an undischarged bankrupt; or has made a composition or arrangement with his/her creditors the terms of which remain to be fulfilled.
- Where the landlord has been granted a suspension of the Right to Buy by the court, if the court is satisfied that the tenant or a person residing or visiting the property has engaged in anti-social behaviour and that it is reasonable to make the order.
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If you decide that buying your home is right for you, you will need to apply to us to buy your home.
- You can get an application form and booklet by calling in to your local neighbourhood office or by contacting the Right to Buy team on 01744 675735 / 38 / 34. Staff will be happy to help you complete your form.
Your application form can be obtained from Helena Housing for free. (Be wary of other people offering you forms, especially if they ask you to pay for this). Fill in the form carefully. It is used to decide whether you have the Right to Buy and how much discount you will get.
When you have filled in the form drop it into any of our local neighbourhood office or return it to:
- Right to Buy Team
Helena Housing
Alexandra Park
Prescot Road
St Helens
WA10 3TT
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When we receive your claim form we will send you a notice (RTB2) telling you whether or not you have the Right to Buy. You should get this within 4 weeks from the date on which we received your RTB1 form (or within 8 weeks if you have been a tenant of your landlord for less than 2 years – this only applies to the Right to Acquire scheme).
If you do not have the Right to Buy your home, we will tell you why. If you disagree with our explanation and decision you can get advice from a Citizens Advice Bureau or from a solicitor. If you are still not satisfied, you can write to the Office of the Deputy Prime Minister.
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If we agree to sell your home to you, we will send you a separate offer notice (known as the Section 125 Notice) which tells you the price you have to pay and further procedures. This must be sent within a further 8 weeks after you have received your RTB2 form if your home is a house and you are buying a freehold or within 12 weeks if your home is a flat or maisonette. If you are buying a house on leasehold terms, the time limit is also 12 weeks.
- The Section 125 is an important document and you should read it very carefully:
The Section 125 document will tell you:
- The description of the property which you have the Right to Buy.
- The price we think you should pay for it. This would be calculated by working out how much your home was worth at the date on which you submitted your application form, and then take off the discount.
- Estimates of the service charges or improvement costs you will have to pay during the first 5 years after you buy your home, if it is a flat or maisonette.
- Any structural defects that we know about.
- Any further information that we think should be attached to the sale.
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When you receive your Section 125 notice, you may think we have valued your home too highly. If so, you have a right to obtain an independent valuation from the District Valuer. Before doing so, you have to inform Helena, (in writing), within 3 months of receiving the Section 125 notice, that you want a ‘determination of value’ under Section 128 of the Housing Act 1985. You then have 4 weeks to put your case to the District Valuer. He will need to inspect your home.
- The District Valuer’s valuation will be one that counts. Even if it is higher than Helena’s valuation, you will still have to accept it or withdraw your application to buy your home.
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If you want to question anything else in the Section 125 notice (the size of your discount, the effect of the cost floor, service charges, your home’s boundaries etc) you should contact the Right to Buy team on 01744 675735 / 38 / 34. If you or the landlord disagree about something, you have right to go to the county court for a ruling. But this can be expensive, and you should get legal advice first.
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Before you finally decide to buy, you should get an independent survey from a qualified surveyor. When you apply for a mortgage, the bank or building society will have a survey done, but this is only to value your home. It may not uncover any structural problems that may exist.
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Before deciding whether to buy, you should get legal advice. If you don’t know a solicitor or a licensed conveyancer you might ask your bank or building society for one they recommend. Your local library should also have details of the solicitors in your area, and details about the type of work they do.
- You should always ask how much it will cost before you employ a solicitor or licensed conveyancer.
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You will now have to decide if you want to:
- Buy your home outright for the full Right to Buy price, less any discount for which you are eligible;
- Forget about buying, withdraw your application, and carry on paying rent.
When you have decided, you must inform us in writing. You must let Helena Housing know your decision within 12 weeks of receiving your Section 125 notice. If you have had your house valued by the District Valuer, you must tell us what you want to do within 12 weeks of getting that valuation.
If you do not let us know what you intend to do in time, we will send you a reminder. If you do not reply within 28 days, we will think you don’t want to buy, and your application will not be dealt any further.
If for any reason you are not able to decide within the time limit what you want to do next, you can ask Helena Housing to wait a bit longer for your reply. If you are unable to decide for a good reason (e.g. you were in hospital), you should tell us and your time limit will then be extended automatically.
You don’t have to buy your home just because you have told us you want to. You can still change your mind. But if you do not tell Helena what you want to do, we will think you don’t want to buy, and you will have to start again. If the value of your home has gone up in the meantime, then you will have to pay the higher price.
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If you are happy with our terms for selling your home to you, and have arranged to raise the money, you should inform Helena Housing, in writing, that you are ready and ask your solicitor for advice on the legal documents and making your payment. It may take a few months before you become the owner of your home.
You should let Helena Housing know as soon as you know you are ready to go ahead and buy. If we do not hear from you for a long time, you may get a warning notice. This will ask you to complete the purchase within 8 weeks. If you don’t, we may send you a second notice asking you to complete your purchase. If you then don’t complete, your application will not be taken further.
Helena Housing cannot send a warning notice until at least 3 months (or 12 months if you applied for the Right to Buy before 18 January 2005) after your Section 125 notice.
It will help things go smoothly, if you or your solicitor keep Helena Housing informed of any other issues that may delay the purchase.
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- The Right to Acquire is similar to the Right to Buy but is only available for applicants who have become new tenants with Helena Housing on or after 2nd July 2002.
As well as occupying a qualifying property you must also:
- Have spent a total of 2 years as a public sector tenant or in accommodation provided by the armed services before 18/01/05 or five years after 18/01/05.
- Live in a house or flat which is a self contained property and is your only main home.
How do I apply?
If you think you qualify for the scheme, you should contact our Right to Buy team on 01744 675735 / 38 / 34 to claim your Right to Acquire application form. Once this has been completed you must sign and date it & return directly to the Right to Buy team or one of our neighbourhood offices.
The process for the Right to Acquire is the same as the Right to Buy, with the exception of the discounts allowed.
The discounts for this scheme are fixed amounts published by the government. The amount of discount you will receive will depend on where you live, currently £9,000 for the North West.
For more information regarding this scheme please contact the Right to Buy team.
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Q. Can I include anyone else in my application?
A. You may be able to buy your home jointly with up to 3 members of your family who have lived with you for the past twelve months, or with someone who is a joint tenant with you.
Q. What happens I want to sell my house later?
A. You can sell your home whenever you like. But if you applied for the Right to Buy before 18 January 2005 and sell within 3 years, you will have to repay some or all of the discount. After 3 years, you can sell without repaying any discount.
If you apply for the Right to Buy on or after 18 January 2005 , and sell within 5 years of buying, you will have to repay some or all of the discount. The repayment of discount will be a percentage of the market value of the property. After 5 years, you can sell without having repaying any discount.
Q. I have rent arrears. Can I still buy my home?
A. Yes. But Helena Housing is not bound to complete the sale if you have not paid all the rent or any other payment within 4 weeks from the date you were asked to pay it. Also you may lose your secure tenancy and no longer have the Right to Buy if your landlord has obtained a suspended possession order against your property, as a result of your rent arrears, which you subsequently breach.
Q. Once I apply to buy can I still access the free repairs service?
A. Only essential repairs will be provided whilst your application is being processed. You will not be entitled to any improvement works. If you complete the sale then you will be responsible for any repairs required to your property. In the event your application is withdrawn then you will be able to access Helena Housing’s normal repairs service.
Q. If I have carried out my own improvements will these be included in the right to buy valuation?
A. Provided you detail your improvements on your right to buy application these will not be included in our valuation.
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