Right to Buy Changes

May 21, 2009

CTAB Mortgage Desk
Right to Buy Changes

The following is a summary of changes that apply to all applications submitted from 18th January 2005 onwards:
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 – disregarding the value of any improvements you have made
anyone who enters into a deferred resale agreement (usually with a property company) triggers the repayment of discount at the time the agreement is entered into NOT at the time at which the ownership of the property is transferred
if you enter into an agreement to transfer your property to a third party in the future then this will trigger repayment of your discount. Discount repayment is triggered from the date that you ENTER into 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 now serve a Preliminary Notice after THREE months (instead of after 12 months) requiring a tenant to complete their Right to Buy purchase
tenants will no longer be able to choose to exercise the Right to Buy on Rent to Mortgage terms after 17th July 2005
you cannot buy your home if:
a court makes a possession order which says that you must leave your home
you are an undischarged bankrupt
have a bankruptcy petition pending against you
have made an arrangement with creditors (people you owe money to) and you still owe them money

The Government does not rule out further changes to the rules in the future but any such change would first have to be approved by Parliament.

CTAB Mortgage Desk is a trading name of COUNCIL TENANTS’ ADVICE BUREAU (UK) LTD. Authorised and regulated by the Financial Services Authority.
Your Home is at risk if you do not keep up your mortgage repayments

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