Right to buy council house

Guide to the Right to Buy for Lewes District Council tenants

Can I buy my Council home?

Yes – if –

• You are a secure tenant  
• You were a tenant before 18 January 2005  
• And you have spent at least two years as a public sector tenant  (either with a Council, a Housing Association, or certain other public bodies – please ask us if you are unsure

If your tenancy started after 18 January 2005 you will have to wait until you have spent at least 5 years as a public sector tenant

No – if –

• You have a Non–secure tenancy 
• You have an Introductory tenancy
• You are a service tenant – ie a Council Scheme Manager or Caretaker. 
• Your home is particularly suitable for occupation by elderly people – if you have a Scheme Manager or if it has features which make it particularly suitable. 
• You have a Possession Order outstanding against you 
• You are an undischarged bankrupt, or have a bankruptcy petition pending against you. If your partner is not bankrupt they may buy the property.

How do I apply?

• Call into our office at 20 Fort Road Newhaven BN9 9QF
• Call into the the Finance and Community Services reception at 4 Fisher Street, Lewes  
• Write to us at Newhaven
• Email us at   housing@lewes.gov.uk    
• Telephone us on 01273 484261 (reception)

Ask for a Right to Buy form, and return it to our Newhaven office. You do not at this stage need a solicitor, and we also do not recommend any private companies that seek to “assist you”. There are no costs involved at this point, and if you need any help in filling in the form our staff can provide it.  It is a good idea to deliver the form to our offices by hand and ask for a receipt, or send it to us by recorded delivery. Make sure you complete all the sections, including the list of your previous tenancies and any improvements you have made. You will also be asked to sign a declaration that you are not bankrupt, and complete a form telling us when access will be available.

What happens next?

We have 28 days to let you know whether you have the Right to Buy (8 weeks if you have held tenancies other than with us). We will send you a form called RTB 2. If we agree you have the Right to Buy we will at the same time start the process of getting your home valued and assessing any service charges.  We check that you completed any improvements you have declared yourself.

What if the Council say I can’t buy my home?

You can appeal, but only against a decision that it is particularly suitable for occupation by elderly people.  Write to the Residential Property Tribunal Service, 1st floor, 1 Market Avenue, Chichester PO19 1JU, telephone 0845 100 2617 - email southern.rap.@odpmgsi.gov.uk.

How does the Council tell me the price and terms of the sale?

We will send you a “Section 125 Notice”. This tells you the price, discount allowed, and if your home is a flat, the estimates of the service charges or improvement costs you will have to pay during the first 5 years after you buy your home. It will also tell you about any structural defects that we know about, and set out the terms and conditions which will be attached to the sale.

How does the Council work out the price?

A surveyor will visit your home by appointment and value the property. Any improvements you have made to the property, which have increased its value, (such as a fitted kitchen, new bathroom, or landscaping the garden) will not be taken into account.

The discount rules differ depending on when you first became a public sector tenant. If your secure tenancy was in existence before 18 January 2005, or you were a public sector tenant before 18 January 2005, you should have spent two years as a public sector tenant. If you were granted your tenancy after this date you should have been a public sector tenant for five years.

The table below gives examples of the discount you would receive if your tenancies started before 18 January 2005. If you became a public sector tenant after 18 February 2005 you will have to wait five years before you can apply to purchase your home; you would then be entitled to a discount of 35% for a house and 50% for a flat, as below.

The maximum discount you are entitled to in the Lewes District Council area is £38,000. So if the calculation of the percentage below is greater,  the price  will only be reduced by £38,000.

Qualifying period	Percentage of discount -   Houses	Percentage of discount -   Flats
2 years	32 %	44%
3 years	33%	46%
4 years	34%	48%
5 years	35%	50%

If you disagree with the price we have fixed you can appeal to the District Valuer. You must tell us within three months of receiving the Section 125 notice that you want a ‘determination of value’ under the Housing Act 1985. You then have 4 weeks to put your case to the District Valuer, who will inspect your home.

What if there is a delay?

We should send you a RTB 2 form within 28 days, (or 8 weeks if you have held tenancies with another landlord). If it is late, you may need to fill in an initial notice of delay form (RTB6). But please phone us first – there may be an explanation or your form may have been lost in the post.  Further details are available from our office.

You have 12 weeks to make up your mind and let us know if you wish to  buy your home after you have received the Section 125 notice.  We will remind you once, and if you do not reply, your application will be cancelled. The time limit will be extended if you have a good reason. If we do not hear from you for a long time we may send you a warning notice asking you to complete or tell us you disagree with the terms of the sale. If you don’t reply your application will be cancelled.

How much will it cost to buy my home?

Along with the purchase price, which most people fund through obtaining a mortgage you should make allowances for:

• Solicitors fees
• A survey – it is recommended that you have your own full structural survey carried out
• Valuation fee for your mortgage
• The cost of arranging your mortgage
• Stamp duty 
• Buildings Insurance

What else will I have to pay if I buy a house?

As a home owner you will have to pay council tax,  and water and sewerage charges. Also remember you have other bills such as gas, electricity and telephone charges. You will be responsible for all internal and external repairs, including decoration

What else will I have to pay if I buy a flat?

You will have to pay:

• Council tax and water rates as above
• Ground rent – usually £10 per annum
• Service charges – as detailed below 
• Contribution towards the insurance costs of the block 
• Contribution towards the ‘’reserve fund’  for the block, which is put aside for the cost of major works.

Service charges reflect the actual cost of doing any works to the block and surrounding area, such as replacing windows, servicing lifts and replacing roofs.  In most cases your share of the cost of the work is calculated by reference to the rateable value of your flat, in proportion to the rateable value of the block. Some blocks have higher maintenance charges than others. You will also have to pay a contribution towards the costs of cleaning the public ways, grasscutting, caretaking, lighting the communal ways and the management of the block.

When do I have to pay service charges?

We will send you a bill in April, October and May. In April and October we will be charging you in advance for the coming year; in May we will be charging you any outstanding balance for the previous year, when we have had an opportunity to finalise costs. An annual statement showing a breakdown of the previous year’s costs will be sent to you with the May invoice.

What is the reserve fund?

A Reserve Fund for each flat to cover major repairs. It will be used for items such as painting, roof repairs or improvements to the block. Leaseholders are asked to contribute a sum to their reserve fund, the sum is currently £70 but is subject to review. 
 
What happens if I don’t keep up the payments?

If you take on a mortgage you must be sure that you will have the income to sustain it, and many people take out Mortgage Protection Insurance or make other arrangements to ensure their mortgage will be paid in the event of unemployment or sickness, and Life Assurance to cover repayment in case of death.

• Remember that as a private owner you will have to meet the cost of regular servicing of boilers, repairs to the interior of your home and maintenance of the garden and fences, if there are any.
• If you don’t pay your mortgage your home could be repossessed.  If you lose your home through non –payment of your mortgage,  the Council is likely to consider that you have made yourself intentionally homeless, and you would not be entitled  to be rehoused by the Council.
• If you don’t pay your service charges the Council will approach your mortgage company for payment and the charge could be added to your mortgage, which you would then have to pay interest on.
• If we are still not able to recover the money we will seek forfeiture of the lease, which could eventually lead to the loss of your home.

Could I lose the Right to Buy before I have completed the purchase?

Yes. The Council could apply to the County Court for an order suspending your right to buy if we believe you are guilty of anti-social behaviour or the use of the premises for unlawful purposes.

What happens if I’m not happy?

There is further advice on delays or problems with the sale in the Government booklet, “Your Right to Buy your Home” .This booklet is available in our Reception areas.  We would not expect to encounter any problems in administering the Right to Buy Scheme within the timescales.
If you have any comments or complaints about the way we administer the Right to buy please write to the Head of Housing Services at Southover House, Southover Road Lewes BN7 1DY.

Right to Buy Changes from 18 January 2005

The Housing Act 2004 came in to force on 18 January 2005 and the following changes to the rules will apply.

• the initial qualification period has been extended from 2 years to 5 years for new tenants
• the discount repayment period has been extended from 3 years to 5 years for applications received on or after 18 January 2005
• 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 homes 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 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 exercise the Right to Buy on Rent to Mortgage terms after 17 July 2005
• landlords must give their tenants on the costs and responsibilities of home ownership

For more details you can get a copy of 'Your Right to Buy Your Home' published by the DETR, with an application form by contacting Lewes District Council on the phone number or email address shown on the right of or by writing to the Housing Department, 20 Fort Road, Newhaven East Sussex BN9 9QF