Right to buy

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Overview

Tenants of Gedling Homes, who were tenants of Gedling Borough Council at the time of the Large Scale Voluntary Stock Transfer to Gedling Homes on 3rd November 2008, have the Preserved Right to Buy.

The Preserved Right to Buy allows these tenants to purchase their current home at a discounted rate.

It should be noted that some of the properties, mainly sheltered accommodation, transferred under the Large Scale Voluntary Stock Transfer to Gedling Homes, are excluded from the Preserved Right to Buy Scheme.

Maximum discount

The Preserved Right to Buy entitles those eligible Gedling Homes tenants to a discount on the purchase price of their home based on the number of years they have spent as a Council or Housing Association tenant.

The purchase price is determined by an open market valuation less the discount which the tenant is entitled to. The maximum discount is capped at £77,000 and the discount is awarded on a sliding scale set out below which varies dependent upon the property type.

 

Qualifying Period in Years                    

 

Discount for Houses                  

 

Discount for Flats
5 35% 50%
10 40% 60%
15 45% 70%
20 50% 70%
25 55% 70%
30 60% 70%
35 65% 70%
40 70% 70%
Over 40 70% 70%

 

Cost floor rules

When calculating the purchase price and the amount of discount, Gedling Homes will take into account the money that has been spent on buying, building, repairing and improving the property in the past 15 years.

How to apply

If you inquire about the Right to Buy Scheme, Jigsaw Homes will initially check that you meet the qualifying criteria. Provided that is the case, Jigsaw Homes will then invite you to make an application for the Right to Buy.

Further information

For more detail about the Right to Buy please visit the government’s website – https://righttobuy.gov.uk/

Voluntary Right to Buy Pilot

Gedling Homes is participating in the Ministry of Housing, Communities and Local Government’s (MHCLG) Midlands Voluntary Right to Buy Pilot Scheme. The scheme is currently closed to new applicants.

 

 

 

 

 

 

Selling your home after you purchase it

If you purchase your home under the Preserved Right to Buy Scheme and subsequently re-sell it within 5 years of doing so, then you will be required to pay back all or part of the discount that you received.

There are a number of factors, such as property value and the length of time since the property was purchased that may influence the amount that you are asked to repay but the general principles are:

Time after purchase when property sold Amount of discount repayable
Within 1 year 100%
Within 2 years 80%
Within 3 years 60%
Within 4 years 40%
Within 5 years 20%

 

Furthermore, if you sell within the initial 5 year period and the sale price, disregarding any improvements you have, is higher than the original open market valuation you will also be asked to repay a proportion of the discount which will be reflective of the increased value of your home.

After 5 years of ownership no discount is repayable under the Preserved Right to Buy Scheme.

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