Contour iNside Magazine Summer 2012:Layout 1 - Contour Homes

Right to Buy OpportunitiesTo Buy orNot to Buy?The government have recently lifted the cap on Rightto Buy discounts meaning that qualifying tenants cannow receive much higher discounts than previously.You can now get up to £75,000 discount whenbuying your home via the Right to Buy scheme.To qualify for the Right to Buy scheme, you musthave been living in your home as a secure or assuredcouncil tenant at the time of a stock transfer.Discount entitlement is calculated as follows:Length of Tenancy tenancy Discount Discount House FlatHouse Flat5 35% 50%10 40% 60%15 45% 70%20 50% 70%25 55% 70%30 60% 70%30+ 60% 70%Please note, if a considerable amount of moneyhas been spent on improving or repairing theproperty within the last 10-15 years, your discountmay be reduced.Deciding whether to buy your home is probably oneof the biggest decisions you will make, and shouldnot be rushed in to. There are some importantthings to consider:MortgageUnless you are going to buy your home with cash, youwill need a mortgage. If you do not keep up mortgagerepayments your home can be repossessed. You willnot be entitled to claim Housing Benefit towards thecost of mortgage repayments.Repairs and MaintenanceAs an owner occupier you will be responsible for theupkeep of your property, eg, if your boiler breaksyou will have to pay for it to be repaired or even areplacement boiler.Selling the PropertyIf you sell your property on within the first five yearsof ownership, you will be obliged to pay back someor the entire discount you received.WarningIf you are approached by any person or companyoffering to help you to buy your council or housingassociation home, check out what is in it for them firstand talk to your landlord before signing up to any deal.Senario 1Mrs Jones has been living in a 3 bed house for 15years and it has been valued at £80,000. She isentitled to a discount of 45% off the market value ofthe property. This equates to £36,000. Therefore, shecan buy the house for £44,000.Senario 2Mr Smith has been living in a 1 bed flat for 20 yearsand it has been valued at £50,000. He is entitled to adiscount of 70% off the market value of the property.This equates to £35,000. Therefore, he can buy the flatfor £15,000.If you would like further information on the Right toBuy scheme, please contact Helen Woodward atContour Property Services on 0345 270 3501.15