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What is Right to Buy?
The Right to Buy (RTB) scheme was introduced by the Government in 1980. It means that you can buy your council home at a discount to the full market value. Many changes have been made to the scheme from 18th January 2005.
Brief overview of the Right to Buy Process
You probably have the right to buy your Council property if you are: -
A) A secure tenant of the council and
B) You have spent at least 2 years as a public sector tenant, with Babergh District Council or another Right to Buy landlord, or 5 years if you became a tenant after 18/01/05
C) You may be able to buy jointly with members of your family who have lived with you for the past 12 months, or with someone who is a joint tenant with you.
How long does the Right to Buy Process take?
Your application form (RTB1) will be acknowledged within 3 working days. To request an RTB1 form contact the Legal Section using details below or print this downloadable RTB1 form (PDF, 201Kb).
Within 4 weeks we will send you a RTB2 Notice. This tells you whether you have the Right to Buy or not. (This process takes longer if you have been a Babergh District Council tenant for less than 2 years)
At this time we will instruct our valuer to contact you to arrange an appointment to carry out a valuation on your property.
Once we have the valuation report, we will calculate your discount entitlement and send you your Offer Notice (known as the Section 125 Notice). This will be sent to you within 8 weeks of you receiving the RTB2 form or 12 weeks if your home is a flat.
You need to reply to the RTB3 form within 12 weeks. After this time you will be sent a reminder. If you do not reply within 28 days your application will be withdrawn.
How much discount will you get?
This is based on the number of years you have been a public sector tenant. The full list of landlords is shown on the reverse of the blue RTB1 form.
If you have been a tenant for at least 2 years the discount available is 32% for houses and 44% for flats. If you became a tenant after 18/01/05 and need 5 years to qualify, the discount available is 35% for houses, and 50% for flats
If you are buying a house you are eligible for 1% more discount for each extra year that you have lived there, up to a maximum of 60% or £34,000.
If you are buying a flat you are eligible for 2% more discount for each extra year you have lived there, up to a maximum of 70% or £34,000.
The qualifying period for discount does not have to be continuous, and can be with different landlords.
Do you need to arrange your own survey?
Yes, we recommend you have a full structural survey of your own.
Will the council carry out repairs until you complete the purchase?
No, all programmed work will stop from the date the RTB1 form is received. We will still carry out emergency repairs.
Will improvements to your home be taken into account?
Yes, you will list all improvements you have made to your home and garden. The valuer will take these into consideration.
Can you appeal if you disagree with the valuation?
Yes, you can appeal to the Council who will then instruct the District Valuer to carry out another valuation. This must be requested within 12 weeks of receiving the Section 125 Offer Notice.
How long do you have to complete the purchase?
You have 3 months from the date of your Section 125 Offer Notice. After this the Council will serve 2 completion notices. Once these expire your Right to Buy will be withdrawn. If you wish to re-apply you will need to request a new RTB1 form.
Changes to the Right to Buy Legislation from 18/01/05
The Council or another social landlord in the area will have the right to purchase your home at the full market value if you sell it within 10 years.
If you sell the property to a third party within the 5 year discount period this will trigger re-payment of the discount. If you sell within the first year all the discount will have to be re-paid.
How do you arrange a mortgage?
We recommend you shop around to find the best deal for you and your circumstances. You need to compare interest rates and the terms of the various Banks/Building Societies. An independent mortgage advisor may be able to help explain the wide variety of mortgages on offer.
What costs do you need to consider?
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All Household bills
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Any structural defects mentioned in the Section 125
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Any programmed work for shared facilities
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Buildings and Contents insurance
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Mortgage payments
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Mortgage insurance
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Any Life Assurance
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Solicitors fees
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Structural Survey fees
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Any arrangement fees for mortgage lender
You are recommended to seek your own advice from appropriate professionals such as financial advisers, solicitors and surveyors as to the necessity and likely cost involved.
Can you re-sell your home after purchasing it under Right to Buy?
You can sell your home whenever you like. If you sell within 5 years of buying it you will have to repay some of the discount that you received. This is calculated as a percentage of the market value of the property when it is re-sold.
Further information can be found on the following documents;
Information for Tenants: downloadable Thinking of Buying your Council Home? leaflet (PDF, 146Kb)
Downloadable Right to Buy Frequently asked Questions (PDF, 127Kb)
Your Right to Buy Your Home web page (by the Department for Communities and Local Government),
Further information can be found on the Government's Right to Buy Scheme web page,
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