What is the Right to Buy?
The Right to Buy is a legal right for Council tenants and certain other public sector tenants to buy the property they rent.
The Preserved Right to Buy
Peaks & Plains does not operate the Right to Buy, however Peaks & Plains tenants who were secure or introductory secure tenants of Macclesfield Borough Council before 17 July 2006, and transferred and remain as Peaks & Plains tenants, potentially have the Right to Buy as a preserved right personal to them.
How does it work?
The Preserved Right to Buy works in exactly the same way as the Right to Buy using the same forms and has the same eligibility and discount levels.
How much does it cost?
When you make an application the open market value of your property is assessed as part of the process by an independent chartered surveyor. The discount you have built up is set off against the open market value to arrive at a sale offer figure.
The current maximum discount is set at 70% with a current maximum monetary figure of £77,900, allowable off the open market value.
Are there exemptions?
Certain properties cannot be purchased such as a property which forms part of a group of properties specifically designed for the elderly or disabled people.
You will not be able to purchase if you have court order against you for non payment of rent or for anti social behaviour. Also if you have been, or are being made bankrupt or have made an arrangement with your creditors, you will not be able to purchase.
Can the preserved Right to Buy be lost?
If you stop being a tenant of Peaks & Plains then your right to the preserved Right to Buy is ended and cannot be reclaimed if you later become a tenant of Peaks & Plains again.
Can I gain the Right to Buy by mutual exchange from another landlord?
No, a person cannot gain the preserved Right to Buy by mutual exchange with an existing Peaks & Plains tenant.
Will I own the property outright?
If the property you rent is a house and Peaks & Plains own the freehold then the freehold of the property is sold to you.
You will be responsible for the purchase costs and will from the date of sale be responsible for all the costs of running and maintaining the property.
If the property is a flat then a lease for a maximum of 125 years will be sold to you.
You will be responsible for the interior of the flat including heating. You will also have to pay the annual ground rent and service charges for works and services provided by Peaks & Plains.
Can I sell the property?
You will be able to sell the property any time after you have completed the purchase. However during the first five years after purchase if you sell the property you will be required to make a payment back to Peaks & Plains based on the amount of the discount in relation to the selling price.
However this diminishes by 20% each year.
Are there any restrictions on selling the property?
If you sell the property within the first ten years after purchase you have to first offer the property back to Peaks & Plains.
- GOV.UK: Buying your council home
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