Are you thinking of purchasing your flat?
If you are thinking of purchasing your flat or maisonette you can download the application by clicking on the link. For full details of the process please contact the Home Ownership Team at Leeds City Council. Telephone number 0113 2476041. They will send you an information pack.
Information for secure tenants concerning the right to buy
You have the right to buy if:
- You are a secure tenant of Leeds City Council.
- Your secure tenancy was in existence before 18 January 2005 or you were a public sector tenant before 18 January 2005 (and you have been a public sector tenant continuously since that time) and you have spent at least 2 years as a public sector tenant.
- For anyone else you do not have the right to buy until you have spent at least five years as a public sector tenant.
- Your home is self contained and it is your only home.
You do not have the Right to Buy if:
- Your home is particularly suitable for occupation by elderly persons;
- An initial demolition notice, valid for up to five years has been served on you by your landlord.
- If your home is inside the boundaries of a school, a social service home, another type of operational building or a cemetery and you live there because you are an employee of that body.
To check whether your property is eligible for the scheme contact the Home Ownership Team on 0113 247 6041
Financial responsibilities of home ownership
Buying your own home means you are taking on a big commitment, especially when are buying a leasehold property. There are many things you will have to pay for separately that are included in your rent at the moment and new costs that you do not have currently. These are some of the things you need to consider
Mortgage repayments
The monthly repayments to your lender for the loan.
What if I can't keep up with the repayments?
You are at risk of losing your home if you do not keep up regular monthly payments on your mortgage. Most lenders are willing to negotiate on reduced payments and lengthening the mortgage terms if you get into difficulties, but they will not keep doing this. You must make sure you can afford the repayments.
Life assurance
To pay off your mortgage if you die before the end of the mortgage term.
Mortgage payment protection insurance
Mortgage payment protection insurance pays your mortgage if you lose your income through unemployment or ill health.
Service charges
Service charges are the charges for any day-to-day services, maintenance and
management we carry out. These services include caretaking, cleaning, concierge, communal heating or lighting and grounds maintenance. You will see an estimate of how much these will be attached to your landlords offer notice (section 125 notice).
Water rates
The water supplier will send you a separate bill for your water charges.
Council Tax
You are paying Council Tax already and this should not change because you have bought your home.
Paying towards major repairs and improvements
Under the Right to Buy scheme, if you purchase a leasehold property the council will remain responsible for the upkeep of the exterior, this will include the windows. You will contribute to the cost of these works under the terms stated in your lease. These can be high especially if the block needs work such as a new roof, new windows or a new lift
Repayment of discount
If you sell your property within 5 years of the purchase you will have to repay all or part of the discount that you received from the council.
This information is published to comply with Section 189 of the Housing Act 2004
One off costs of buying your home
When you are purchasing your home there are a number of one of costs that you need to consider and budget for
- It is recommended you employ a solicitor or a licensed conveyancer to look after the legal side of buying your home. Before employing anyone, always ask how much his or her advice will cost.
- Consider having a survey of your home done. These can cost between £250-£600, or more if your home has any special problems. You should ask how much it would cost before you go ahead with the survey. If you are having a mortgage they maybe able to arrange it for you
- If you take out a mortgage loan, you may have to pay for the cost of arranging it. You will also have to pay a valuation fee (average cost £200-£300). Your mortgage lender may ask the council for a reference including
information on your rent payment history.
- When a sale is completed, you must pay the Land Registry to register you as the new owner.
- You may have to pay stamp duty, stamp duty is worked out as a percentage of the price you pay for your home if this is more than £120,001.
Right To Buy Process
There are several stages you go through when you buy your home. The Home Ownership Team will advise you of the process. Briefly the stages are as follows:
Stage 1
Firstly you must fill in and return the application form `Notice claiming the Right To Buy`, which is called an RTB1.
Stage 2
When the Home Ownership Team have received and checked your form, they will send you a `Landlords notice in response to tenants rights to claim`. This is called an RTB2.
Stage 3
The Home Ownership Team will now send an instruction to their valuer to come and inspect your property to see how much it is worth. They will then send you a notice called the `Landlords Offer Notice`. This is also known as the Section 125 notice. The Section 125 notice is one of the most important documents you will receive when you are buying your home. Once you receive this notice and you decide to go ahead, you should be thinking about:
- Applying for a mortgage
- Having a full structural survey carried out (your mortgage lender may be able to arrange this for you);
- And choose a solicitor to act for you in the legal process.
Stage 4
You must write to the Home Ownership Team within 12 weeks of receiving your section 125 notice, telling them if you are going ahead with the Right to Buy or not. If they do not hear from you your application will be considered as being withdrawn.
You can however submit a fresh application at any time
Stage 5
If within 4 months of the date on the landlords offer, the transaction is not complete, the Home Ownership Team will send you two notices telling you to complete the sale. The first notice, a section 140 will be served giving you 56 days to complete the sale. When that time expires they will serve you with a final notice to complete called a section 141. This gives you a further and final 56 days. If the sale is not completed within this time the application will be considered as having been withdrawn.
If you have rent arrears when you are near to completing the purchase of your home you should ensure that the arrears are cleared in full. If you do have arrears it may delay your purchase.
If at any step in the process you believe the council is causing delays in the sale of your property you can serve a delay notice on the council. This notice is called an RTB6. You can get the form from the Home Ownership team.
The price of your home
The Right to Buy scheme gives tenants a discount on the market value of their homes. The longer you have been a tenant, the more discount you get. The maximum discount available is £24,000.