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Right to buy / home ownership
Information for secure tenants.
Buying your home is probably the most important decision you will ever make and the most expensive thing you will ever purchase. Under the Housing Act 2004 your landlord (the council) has to tell you about the right to buy (RTB) and give you information which will help you decide if buying your home is right for you. H & F Homes manages the right to buy process for the council. In buying a home, you enter into a long-term financial commitment. Don't forget, you may be in danger of losing your home if you get into financial difficulty.
So how do I qualify?
To qualify for the right to buy you must either be: -
a) A secure tenant of Hammersmith & Fulham Council.
b) Have held a public sector tenancy for a period of;
(i) two years if you were a public sector tenant before 18th January 2005, or
(ii) five years if you had your first public sector tenancy on or after the 18th January 2005.
c) Be living in the property as your only or principal (main) home.
Is there any reason that I cannot exercise my right to buy if I meet the criteria above?
There are some circumstances that will stop you having the right to buy even though you have the minimum tenancy period. These are: -
a) If you have been declared bankrupt.
b) If you are, or have been, in breach of a suspended possession order.
c) If the council is not the landlord and only has a leasehold interest in the property and there are not enough years left on the council's lease.
Are there any properties that are not included in the right to buy scheme?
Some properties are exempted from the right to buy, these are: -
a) Sheltered housing schemes.
b) Property suitable for the elderly and mentally disabled.
c) Accommodation provided as part of an employment contract.
How do I claim my right to buy?
You will need to complete a form known as RTB1. You can get this form and an information pack from the Right to Buy Team based at Riverview House, Beavor Lane, W6, 9AR, or you can telephone for a pack on 020 7853 1741, or email home.ownership@lbhf.gov.uk
Staff in the right to buy team will be happy to help you complete the form and offer advice – you do not have to pay for this service.
How much will my home cost me?
Each home has an individual value. Even houses or flats next door to each other may have a different value. If you make an application we will arrange for the property to be valued by a valuer and the price will be based on what the property would be worth if it were sold on the open market. If you have made and paid for any home improvements, this cost will be deducted. All this information will then give us the market value of your home. You will also be entitled to a discount on the market value. This is based on the number of year's public sector tenancy you have and starts at 44% for flats and 32% for houses. There is a maximum discount that the council can give you, this is set by the government and is currently £16,000.
How long will it take to complete the purchase?
On average it takes about nine months to complete the whole process if everything goes smoothly. If there is a delay you can get a form known as RTB6, from the Right to Buy team – again, a member of the team can advise you on how to complete this form – this shouldenable the process to be sped up. If HFHMS does not respond to that notice in a timely fashion, the price of your home can be reduced by the extra weekly rent you have paid due to the delay.
There are also time limits for you to respond to HFHMS on some stages of the process, or your right to buy may be withdrawn.
Does it cost me anything to claim my right to buy?
You do not have to pay HFHMS for processing your claim, for the valuation or for the council's legal costs in completing the sale.
There are some costs you will have to pay in addition to the price of the property. These include: -
a) Stamp duty (this is a tax on the value of your property at the time of purchase).
b) Solicitor's fees associated with the purchase of your home
c) Survey and valuation fees of your mortgage lender in arranging your mortgage.
What other costs will I have to pay as a homeowner?
Once you have bought your home you will have to pay a number of regular bills. Some of these you pay now, but others will be new or
replace payments you made before. These costs include: -
a) Your monthly mortgage repayment (this will be instead of your rent).
b) Any other charge on put on the property (such as a secured loan).
c) Buildings insurance, life assurance and mortgage payment protection insurance.
d) Council Tax.
e) Water and sewage charges, electricity/gas or other utility charges.
What happens if I don't keep up payments on my mortgage or other charge on the property?
If you do not keep up with your mortgage repayments or any other payments of loans secured on the property you may lose your home. Your mortgage lender will take possession of the property and sell it to recover the debt you owe. You will be given any balance of the saleproceeds once they have taken their money and costs. You will then be homeless and may not be entitled to help from the council to provide you with a home.
Is there anything else I should be aware of?
Whether you buy a house or a flat you will at some point have to spend money on repairs and maintenance. If you have a house it is your responsibility to do all repairs and maintenance to the property and pay the costs of those. If you have a flat you will be responsible for maintaining the inside of the flat and any repairs that are required.
The structure of the building the flat is in, including windows and external doors, will be maintained by H & F Homes on behalf of the council. H & F Homes will carry out the maintenance and you will be charged for your share of the work, with this cost included in your lease. In some cases, these charges may run to several thousand pounds and you will need to make provision to meet these costs.
If you have a flat you will also have to pay H & F Homes for any services it provides to your building or estate. These service charges include caretaking, grounds maintenance, communal lighting, lifts, door entry systems, day to day repairs and maintenance. Details of these service charges will be included in the offer notice you receive during the RTB process.
For any further information on the right to buy please contact the right to buy team at:
H&F Homes,
Home Ownership unit,
Riverview House,
Beavor Lane W6 9AR
tel 020 8753 1742, 1743 or 1744
email home.ownership@lbhf.gov.uk.