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

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? Council or Housing Association tenants Insert logo

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 Right to Buy since 1980 when the scheme began. What is Right to Buy? Council or Housing Association tenants Insert logo

Step One: Are you eligible? Council or Housing Association tenants 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 housing particularly suitable for elderly or disabled people The property is your only or main home. Insert logo

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 Council or Housing Association tenants Insert logo

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). Council or Housing Association tenants Insert logo

Some worked examples 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) Example 1 Council or Housing Association tenants NB. Discounts may be smaller if your landlord has carried out any major work on your property Insert logo

Some worked examples 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) Example 2 Council or Housing Association tenants NB. Discounts may be smaller if your landlord has carried out any major work on your property Insert logo

Step Three: Work out the costs 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 Council or Housing Association tenants Costs you need to think about. You should also compare with what you are paying now. Insert logo

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. Council or Housing Association tenants Insert logo

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 Step Three: Seek advice Council or Housing Association tenants Insert logo

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

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

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 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. Step Four: Fill in an application form Council or Housing Association tenants Insert logo

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. Council or Housing Association tenants Insert logo

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

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

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

Any questions? Council or Housing Association tenants Insert logo