Selling your property in the future
When you buy your property under the Right to Buy scheme there will be restrictions on re-selling the property .
In the first 10 years the Council has ‘first right of refusal’. This means that you first have to offer the property back to the Council at market value. This does not mean that the Council will buy the property from you.
In the first five years you would also have to pay back a proportion of the discount you received when you bought the property:
- 100 percent of the discount in the first year
- 80 percent of the discount in the second year
- 60 percent of the discount in the third year
- 40 percent of the discount in the fourth year
- 20 percent of the discount in the fifth year
Be aware that the actual discount value you will pay back depends on the value of your home when you sell it.
You will have to repay your discount if you enter into an agreement to transfer the property to a third-party in future. This applies from the date you entered the agreement so could mean you have to repay your full discount.
You should also note that if you buy a leasehold property, the value of the property may start to reduce over time. This is because the leases are only granted for an initial period of 125 years.