Right to Buy

Are you a Gosport Borough Council tenant, and have been a public sector tenant for at least 3 years?

If yes, now might be the ideal time to think about buying your home.

That's because the top discount under the Right to Buy in England has been increased. You could now get a maximum discount of up to £102,400. Under plans announced by Government, this amount will now increase every April in line with the CPI (Consumer Price Index).

Why you might like to buy...

Your home could be a valuable asset for you and your family and an investment for the future. Home ownership could give you more freedom to make the changes you want to your home. This could be your first step on the property ladder.

Remember, buying your home is a big decision and a commitment that shouldn't be taken lightly. The responsibilities, costs and financial commitments that home ownership brings need to be thought about carefully, so you should always get impartial financial and legal advice before buying.

Both the "Right to Buy Application Form (RTB1)" and the "Right to Buy Additional Information Form" (RTB A/I) will need to be completed in order to process your application.

Please note -

In order submit your Right to Buy application all named applicants will be required to attend a meeting with the Gosport Borough Council Right to Buy Officer. It is at this meeting where your completed Right to Buy application forms are to be hand delivered to the Right to Buy Officer and your identity can be confirmed.

• Stage 1 - Complete the Right to Buy application form (RTB1) and the Right to Buy Additional Information Form (RTB A/I), then arrange an appointment with the Right to Buy Officer.
• Stage 2 - We check and acknowledge your application forms.
• Stage 3 - Offer notice (section 125 notice)
• Stage 4 - How the discount is calculated
• Stage 5 - Appealing to the District Valuer
• Stage 6 - Other questions about the section 125 notice
• Stage 7 - Getting a mortgage
• Stage 8 - Getting legal advice
• Stage 9 - Telling us what you want to do
• Stage 10 - Frequently asked questions

Stage 1 - Complete the Right to Buy application form (RTB1) and the Right to Buy Additional Information Form, then arrange an appointment.

We use these forms to check if you have the right to buy and how much discount you are entitled to. Once you have completed the forms you will need to contact us on 023 9254 5686 to arrange a Right to Buy interview. This will be carried out at Gosport Borough Council Town Hall and needs to be attended by all people being included in the Right to Buy purchase. You will need to provide one form of photographic identification and two forms of proof of residency for each person who is being included in the purchase.

 Acceptable forms of residency documentation include:

• P45, P60 or Pay Slip
• Recent utility bill (no more than three months old)
• Recent Council Tax bill (no more than three months old)
• Credit card statement
• Bank statement

Additional - If you are a non-tenant family member sharing the right to buy please provide chronological proof of residency for the last 12 months. A good example of this would be 12 months' worth of bank statements.

Stage 2 - We check and acknowledge your application forms.

Once the application forms have been checked we will send you a notice (RTB2) to tell you if you have been given the right to buy or if not, the reason it has been denied. By law, we must send this information to you within four weeks of receiving your application form.

Stage 3 - Landlords offer notice (Section 125 notice).

If you have a right to buy, we will ask our nominated estate agent to carry out a valuation. After this, we will send you details in an offer notice (section 125 notice) including:

• the valuation of your property
• the amount of discount you are entitled to. This is calculated according to the number of years you have been a secure tenant, either with us or with another registered landlord but the Government has set a discount limit of £102,400 or 70% (whichever is the lower).
• an estimate of the amount of service charges you will have to pay if you buy a flat or maisonette
• any structural defects that may be relevant
• a draft of the legal documentation.

Stage 4 - How the discount is calculated.

House or bungalow

If you have spent three years as a public sector secure tenant you may be entitled to a discount of 35% for the first five years and 1% for every other completed year up to a maximum of 70% (40 years as a secure tenant) or £102,400 (whichever is the lower).

Flat or maisonette

If you have spent three years as a public sector secure tenant you may be entitled to a discount of 50% for the first five years and 2% for every other completed year up to a maximum of 70% (15 years as a secure tenant) or £102,400 (whichever is the lower).

Stage 5 - Appealing to the District Valuer.

If you are not happy with the full market price shown in your section 125 offer notice, you can appeal to the District Valuer, who will carry out an independent valuation of the property. However, bear in mind that you will have to accept this valuation even if it is higher than our valuation. To have the property re-valued you will need to send a written request to the Gosport Borough Council Right to Buy Officer outlining the reason(s) for the re-valuation request. This must be done within 84 days of receiving your offer notice.

Stage 6 - Other questions relating to the Section 125 notice.

If you would like to discuss anything else about the offer notice, contact the Gosport Borough Council Right to Buy Officer.

Stage 7 - Obtaining a mortgage.

If you decide to go ahead and buy your property you will need to get a mortgage from a bank or building society unless you are paying cash. They may charge you for arranging this and for carrying out the mortgage valuation survey.

Stage 8 - Legal advice.

Once you have secured a mortgage you will need legal advice. You should take your section 125 offer notice and draft transfer to your solicitor. You will be charged for this service. Your solicitor will act on your behalf and liaise with our legal department.

Stage 9 - Telling us what you want to do

You now need to decide what you would like to do:

• Do you want to buy the property under the Right to Buy?

OR

• Do you wish to cancel your application?

Along with your section 125 offer notice you will have also been sent the section 125D Acceptance / Withdrawal form.

You must let us know your decision by completing the section 125D Acceptance / Withdrawal form within 84 days of receiving your section 125 offer notice. Once Gosport Borough Council receives your completed section 125D Acceptance / Withdrawal form, our legal team will correspond directly with your nominated solicitor to convey the sale of the property.

If however, we do not receive your completed section 125D Acceptance / Withdrawal form during the 84 day return period we will send you a reminder (section 125E notice). If we still do not hear from you after a further 28 days from the date stated on the section 125E notice, we will deem your Right to Buy application withdrawn.

Stage 10 - Frequently asked questions:

Can you tell me how much my property is worth?

No, in order to give a fair and accurate valuation, you will need to have the property valued by the Council and to have this done you must first complete an application form.

How long will it take for the Council to value the property?

The valuation is usually carried out within four to six weeks of when we receive your application. However, because of the various legal procedures which must take place, it is usually another four to six weeks before a written valuation can be sent to you.

Do I have to pay for the valuation?

No, there is no charge for the valuation or any other processes which we have to carry out. However you must pay solicitor and valuation fees when you arrange a mortgage if applicable.

Can you include tenancies with other councils etc?

Yes, we can take into account most tenancies you have had with other local authorities, housing association and other public sector Landlords.

Can my son or daughter join in the purchase of my property?

Up to three members of your family have the right to buy with the tenant/s of the property provided they have lived there for the last 12 months as their sole or principal home and do not have a tenancy elsewhere.

Why am I not entitled to the full discount, if I have been a tenant for 30 years?

The Government has set a limit on the amount of discount we are allowed to give and in this area the limit is £102,400 or 70% whichever is the lower figure. This is the full discount.

Can I sell or transfer my property once I have purchased it?

If you buy your home under the Right to Buy, you can sell it whenever you wish.  If you wish to sell within the discount repayment period of the first 5 years however, you will have to repay some or all of the discount.

The amount of discount at the time of resale will not be the same as the amount of the discount you received.  It is calculated as a percentage based on the current market value of your property, disregarding the value added as a result of any improvements you have made.

You will have to repay discount as follows:

• If sold, at any time during the first year after purchase, all of the discount will have to be repaid;
• If sold, at any time during the second year, four fifths must be repaid;
• If sold, at any time during the third year, three fifths must be repaid;
• If sold, at any time during the fourth year, two fifths must be repaid; and
• If sold, at any time during the fifth year, one fifth must be repaid.
• A sale within the discount period to an agency offering to purchase the property from you and then to rent it back to you will be a disposal, which will give rise to repayment of discount. An agreement with another person or agency to sell your property to them at the end of the discount period is also considered to be a relevant disposal which will give rise to repayment of discount at the date you enter into that agreement.

After five years, the property can be sold without repayment of any discount.

For advice or to request an application form, please contact: The Right to Buy and Leasehold Officer on 023 9254 5686 or email leaseholders@gosport.gov.uk