Selling your home
Once you have bought your home you can sell it when ever you like, however if you applied after 18th January 2005 and you sell within the first five years of buying your home, you will normally have to repay some or all of the discount.
- 1st year All of the discount
- 2nd year 80%
- 3rd year 60%
- 4th year 40%
- 5th year 20%
After the fifth year you can sell your home without repaying any of the discount.
The amount of discount to be repaid if you sell within the five years will be a percentage of the resale value of the property (disregarding the value of any improvements) not just a percentage of the actual discount received.
Discount Repayment example
Your home was valued at £60,000 at the time you bought it from the Council. You received a discount of £22,000, meaning that your discount was 37%.
You want to sell your home in the second year of purchase. Your home is now valued at £80,000. You would have to repay £80,000 x 37% discount x 4/5 (80%) i.e. £23,680.
During the 6th year and onwards you can sell the property without having to repay any of the discount.
Full details are set out in the Government booklet - 'Your Right to Buy your home'
Right of first refusal
Once you have purchased your property through the Right to Buy Scheme should you wish to sell within 10 years of purchase you will be required to offer it back to Cestria or the Council depending on who your former landlord was at the time of purchase, at full market value.
You would be required to provide details of the market value and full property details in order for a decision to be made and it is at the discretion of your former landlord whether they wish to buy the property back, you will be notified within 8 weeks of a decision.
You will be free to sell the property on the open market if there is no interest from your former landlord in buying back the property.