If you applied to buy your home on or after the 18th January 2005 and you intend to sell or dispose of your property within 5 years of the date of your purchase you will be required to pay back discount.
If you sell in the First Year of ownership the whole discount will have to be repaid. Four fifths (80%) of the discount must be repaid if you sell within the Second Year, three fifths (60%) in the Third Year, two fifths (40%) in the Fourth Year and one fifth (20%) in the Fifth Year. After 5 years you can sell without repaying any discount. In addition, the amount of discount to be repaid if you sell within the first 5 years of ownership will be a percentage of the resale value of the property, disregarding the value of any improvements you have carried out.
Right of First Refusal
If you purchased your home after 18 January 2005 and decide to sell within 10 years, the Council have right of first refusal to buy back your property. This means you must send a letter offering Gateshead Council the chance to buy back your property before you can sell it on the open market. The Council do not have the right of first refusal on properties sold before 18 January 2005. At present Gateshead Council do not buy back properties sold under the Right to Buy.
If you purchased your home under the Right to Buy before 18th January 2005 you will no longer be liable to repay any discount to Gateshead Council or offer us the right of first refusal should you decide to sell your home.