Things to consider before buying your home

Consider the following points before deciding to buy your home.

 

Deferred Resale Agreements

Loans and mortgages

As a home owner you will not be able to claim Housing benefits

Social care and Funding Adult social care costs

Other advice 

 

 

Deferred Resale Agreements

Under the Right to Buy scheme, tenants who meet the eligibility criteria are able to purchase their council home at a discounted price.

If you are thinking of applying for the Right to Buy (RTB) and someone offers you money in advance to buy the property on their behalf. This agreement between you and the person who gives you the money is called a deferred resale agreement.

If an agreement has been made between an applicant and someone else, and the Council discovers that such an agreement exists, the law allows the Council as landlord to take the matter to Court and ask to recover all the costs of the RTB application including the discount (which can be up to £77,900).

The process of deferred resale agreements occurs when people who are not entitled to buy their council property (someone other than the tenant of the property) attempt to buy the property through the tenant, and with the tenants discount.

If you are aware of a deferred resale agreement being entered into, we would like to hear from you, so that we may investigate any possible fraud.

If you would like more information about RTB and deferred resale agreements you can contact the Home ownership team on 01908 253705.

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Loans and mortgages

You may need to get a loan or mortgage to enable you to exercise the Right to Buy (RTB). Once you have bought your property you will become responsible for all costs of maintaining your home, including routine repairs, major structural repairs, and improvements to it. If you become a leaseholder by buying your flat, you should be aware that you will have to pay servive charges each year, and also meet the costs of the major repairs and refurbishment which can be substantial.

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As a home owner you will not be able to claim Housing benefits 

As a tenant, you may be able to claim housing benefit to help with your rent. As a home owner, you will NOT receive any housing benefit to help with your mortgage costs.. You may be entitled to income support to assist with housing costs, but this is not usually payable for 39 weeks after you first claim it.

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Social care and Funding Adult social care costs 

If you are elderly and own your home, its value may be taken into account when assessing whether you are eligible for financial help with the costs of residential care.

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Other advice 

If you are approached by a person or company offering to help you buy your council house, talk to your landlord before signing any agreement.

Some companies may charge a fee for administration work that is available free if you contact your landlord - for example, RTB application forms are available for no charge from your landlord and your landlord will also help you to complete the form and answer any questions you may have about the procedure.

Be suspicious if anyone tries to tell you that the Right to Buy Scheme is going to be ended. People may be trying to persuade you to do something that benefits them rather than you. tenants do not always receive good advice from private companies and individuals offering to help them buy their homes.

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Last Updated: 17 July 2018