Home Ownership for [……] Council Tenants

Council or Housing Association tenants Home Ownershipfor [……] Council Tenants [Insert authors name] [Job title] [Team] Insert logo

Council or Housing Association tenants What this presentation is about • What is Right to Buy • A step-by-step guide to buying your home: • Step One: Find out if you are eligible • Step Two: Work out the discount • Step Three: Work out the costs get advice • Step Four: Fill in an application form • Step Five: Receive an offer from your landlord • Step Six: Surveys, loans and more advice • Step Seven: Complete your purchase • Useful contacts • Any questions? Insert logo

Council or Housing Association tenants • Right to Buy is a scheme that gives council tenants the opportunity to buy their homes at a discount. • In April 2012 and March 2013, the top discount on Right to Buy was increased and now tenants can buy their home with up to a 70% discount. • Two million homes have been bought under Rightto Buy since 1980 when the scheme began. What is Right to Buy? Insert logo

Council or Housing Association tenants Step One: Are you eligible? You could be eligible for a Right to Buy discount if: • You are a council tenant – or have been a council tenant when your home was sold to your current landlord • You have been a tenant for at least 5 years • You don’t live in sheltered housing or other housingparticularly suitable for elderly or disabled people • The property is your only or main home. Insert logo

Council or Housing Association tenants Step Two: How much discount? The level of discount depends on two things: How long you have been a secure council tenant You must have been a tenant for five years or more(this doesn’t need to be continuous) and the discount goes up for every year over this Whether you live in a house or a flat Insert logo

Council or Housing Association tenants Step Two: How much discount? • For a house: • Discounts start at 35% after 5 years’ tenancy • Add 1% for each extra year that you have been a tenant, • Up to maximum 60% discount – or £75,000 (whichever is the lower). • For a flat: • • Discounts start at 50% of market value after 5 years’ tenancy • • Add 2% for each extra year that you have been a tenant • • Up to a maximum 70% discount – or £75,000 • (whichever is the lower). Insert logo

Council or Housing Association tenants Some worked examples Example 1 • Miss X is buying her flat • Current flat value: £120,000 • Years as a tenant: 10 years • Percentage discount: 60% • (50% + 2% for each year over 5 years) • Value of discount: £72,000 • Price she will pay: £48,000 • (£120,000 less £72,000) NB. Discounts may be smaller if your landlord has carried out any major work on your property Insert logo

Council or Housing Association tenants Some worked examples Example 2 • Mr and Mrs J are buying their house • Current house value: £200,000 • Years as tenants: 10 years • Percentage discount: 40% • (35% + 1% for each year over 5 years) • Value of discount: £75,000 as £80,000 • (40% of £200,000) is greater • Price they will pay: £125,000 • (£200,000 less £75,000) NB. Discounts may be smaller if your landlord has carried out any major work on your property Insert logo

Council or Housing Association tenants Step Three: Work out the costs • Costs you need to think about. • You should also compare with what you are paying now. • One-off purchase costs: • Survey fees • Legal fees • Mortgage fees • Stamp duty • Ongoing costs: • Mortgage repayments • Service charges • Insurance payments • Living costs • Other: • Major repairs Insert logo

Council or Housing Association tenants Mortgages • You will probably need to apply for a mortgage. • A mortgage is a loan you take out over an agreed number of years and pay back with interest. • Make sure you shop around and find the best deal for you. There are a wide variety of mortgage products on the market. • Free advice is available but some people will charge a fee so always check costs upfront. Talk to our independent advisers here today, the Money Advice Service or Citizen Advice Bureau. Insert logo

Council or Housing Association tenants Step Three: Seek advice Make sure you seek advice as early as possible Pick up a handy guide to mortgages from the Money Advice Service on the Right to Buy stand Visit their website at www.moneyadviceservice.org.uk Insert logo

Council or Housing Association tenants Step Three: Seek advice For more information on Right to Buy, visit the Right to Buy website at www.communities.gov.uk/righttobuy. You will find some practical tools to help you work out if Right to Buy is for you, including an eligibility quizand discount calculator. Insert logo

Council or Housing Association tenants Step Three: Seek advice Talk to the mortgage advisers from the Citizens Advice Bureau for free impartial advice, or visit www.adviceguide.org.uk Insert logo

Council or Housing Association tenants Step Four: Fill in an application form The Right to Buy application form is called RTB1 You can pick up a copy today – or download it from the Right to Buy website www.communities.gov.uk/righttobuy Fill this in and send it by recorded delivery to your landlord. For help with filling it in, speak to the housing officers here today. Insert logo

Council or Housing Association tenants Step Five: Valuation and offer Return the RTB1 form. Your landlord will contact you to confirm you are eligible and to arrange for someone to come and value your home. The landlord then has up to 12 weeks to send an offer letter for a flat and 8 weeks for a house • Your landlord will send you an offer notice within 8 weeks for a house (S125), setting out: • the property value • discount • price you’ll pay • any structural problems they know about • terms and conditions. • For leasehold properties, you will also be given an estimate of service charges over the next 5 years. • You have up to 12 weeks to accept this offer. Insert logo

Council or Housing Association tenants Step Six: Surveys, loans and more advice • If you accept the offer, you will need to: • get a surveydone • appoint a solicitor • and apply for a mortgage • Talk to the advisers today for advice! Insert logo

Council or Housing Association tenants Congratulations – You are now a homeowner! Insert logo

Council or Housing Association tenants Useful Contacts • For more information • Visit our stalls next door • Visit www.moneyadviceservice.org.uk for financial advice • Visit: www.adviceguide.org.uk for info about legal advice • Visit our website [www…….] • Call the [home ownership team on…………] • Visit www.communities.gov.uk/righttobuyfor more info on Right to Buy and how to apply Insert logo

Council or Housing Association tenants Any questions? Insert logo

Home Ownership for [……] Council Tenants