The Right to Buy is a Government run scheme that allows some tenants to purchase the property that they rent from the Council at a price lower than the full market value. The scheme started in 1980 and there have been a number of changes throughout the years, the most recent being through the Housing Act 2004, whereby different rules apply to new tenants and tenants who applied after 18 January, 2005. Further details are available in booklets produced by the Department for Communities and Local Government (DCLG ) called ‘Your Right to Buy your home’ |and ‘Thinking of buying a council flat’|. You can download these leaflets following the links provided. Copies are also available free of charge from the Home Ownership team at the Civic Centre, Gateshead.
Issues to consider before deciding to buy your home
The Council wants to make sure that those people who choose to exercise their Right to Buy (RTB ) are given full information and advice to support them with the ongoing responsibilities and costs of being a homeowner.
Further information which you should consider is available by clicking on the following links:
We aim to make access to the Right to Buy as easy as possible for everyone. The following link will take you directly to a website which provides mortgage information Housing Options Mortgage Factsheet|. The DCLG provide booklets in community languages which can be accessed from their website using the following link:
EXPENSES TO CONSIDER BEFORE COMPLETING THE RIGHT TO BUY
Stamp Duty – You will be required to pay a percentage of stamp duty depending upon the purchase price of your home. A guide is :-
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If your home is purchased for up to £120 000 you will be required to pay 0%
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If your home is purchased from £120 000 to £250 000 you will be required to pay 1%
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If your home is purchased from £250 000 and over you will be required to pay 3%
Legal Fees - This amount can vary amongst Solicitors but it should be expected that legal fees may be approximately £600.
Valuation, survey and mortgage arrangement fees - can vary but the tenant should expect to pay approximately £300 to £500.
EXPENSES TO CONSIDER AFTER PURCHASING YOUR HOME
Mortgage Repayments - The council cannot advise you regarding repayment amounts, but, you must be aware that if you fail to pay your monthly mortgage payments this may result in your property being repossessed by your lender. The council is under no obligation to give you another tenancy should your home be repossessed due to non payment of mortgage.
Building Insurance: life insurance and mortgage payment protection - With all leasehold properties (flats), building insurance is provided as part of the tenant’s annual service charge. For freehold properties (houses), the owner is required to purchase their own building insurance.
You should take independent advice to help you decide whether or not life insurance or a mortgage payment protection scheme is required.
Council Tax - Council tax will be payable each year but payment plans in the form of monthly direct debits are available. The amount you need to pay will vary on the area the property is located in and it’s value. To obtain costs you should contact the Council’s Finance Department.
Utilities - Water payments are payable to Northumbrian Water. For further details of water charges you should contact Northumbrian Water directly.
Gas, electricity and other utility services are payable directly to the utility providers.