For the Communities's booklet on Right To Buy, click on the link below:

RIGHT TO BUY

Waterloo tenants who have a secure tenancy may have the right to buy their home at a substantial discount. This page explains how to apply for the right to buy but also what to consider in making the decision to buy your own home.

Who has the Right to Buy

To have the right to buy your home from Waterloo

• You must have a secure tenancy
• You must have had a housing association or council tenancy for more than 2 years
• This must be your only home

You can apply for the Right to Buy jointly with joint tenants or members of your family who have lived with you for the past 12 months.

rrtb.pdf (483Kb)

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Communities and Local Government
(Right To Buy section)

Who doesn't have the right to buy

You do not have the right to buy if:

• You live in a sheltered scheme or where your home is specifically for the use of elderly or disabled people
• You have a court order saying you must leave your home
• You are bankrupt or have been declared insolvent
• If Waterloo does not own the freehold of your home
• You occupy your home because you are employed by Waterloo

How much will it cost?

The price you pay for buying your home will be the current open market value less the discount you are entitled to.

To work out the value we will ask an independent valuer to tell us the open market value of your home. (You can get an idea of what this will be from similar properties for sale in your area) If you are not happy with this valuation you have the right to appeal to the district valuer - this will be the final valuation and could be more than the original value.

To work out the discount you can get we calculate how long you have been a tenant. The minimum discount if you have been a Waterloo secure tenant since before January 2005 is 32% if you live in a house and 44% if you live in a flat. This rises at 1% a year to make a maximum discount of 60% for a house and 2% a year to a maximum of 70% for a flat.

If you exchanged with a Waterloo secure tenant after January 2005 your discount will be less. You have to have been a housing association tenant for 5 years and you will then get a discount from a minimum of 35% for a house or 50% for a flat, to a maximum of 60% for a house and 70% for a flat.

In all cases the maximum discount you can have is £26,000

Other costs of buying your own home

Buying your home is a major financial commitment. In addition to the purchase price of the property you will need to pay certain initial costs.

These costs may include:

• Mortgage arrangements. Fee and valuation if you are going to get a mortgage.
• Legal Fees. The cost of a solicitors to deal with the purchase for you.
• Survey Fees. You should ask a qualified surveyor to carry out an independent survey
• Land Registry. Registration fees
• Stamp Duty. If the value of your property is over £125,000 you have to pay from 1% in stamp duty
• Deposit

Ongoing costs of ownership

Mortgage payments
Unless you buy the property with cash, the cost of a mortgage can vary substantially depending on what offer you get. It is important for you to know and realise that the amount you have to re-pay may vary with interest rate changes.

Changes in interest rate(repayment mortgage)
The following table gives you an idea of how much repayments would vary based on borrowing £100,000 over 25 years

Council tax
You will be responsible for paying your council tax.

Buildings Insurance
You should make sure that your home is insured for its full value against any type of damage. If you buy a flat, Waterloo will insure the building but costs will be passed on to you in service charges.

Contents Insurance
You should make sure that the contents of your home are covered against any type of damage.

Life Insurance
You may prefer to take out a life insurance policy in case the main earner in the family dies before the mortgage is fully repaid.

Mortgage payment protection insurance
This type of insurance can cover mortgage repayments for up to a specified period in the event of redundancy, sickness or accidents.

Utility Bills
You will have to pay your gas, electricity, water, etc.

Maintenance/ Repair costs
You will be responsible for organising and paying for all repairs and improvements to your home once you have bought it. This will include regular servicing of your central heating. If you buy a flat you will have to pay your share of costs or repairs to the outside of the building and to communal areas.

Service Charges
Charges for providing services or maintaining communal areas by Waterloo

The risk of repossession

It is important that you keep your mortgage payments up to date. If you fail to do so, there is a risk that the lender will exercise their legal right to take over possession of your home.

Points to note

The information in this document is only a guidance and it is not a substitute for any professional or legal advice.

Further Information

"Your Right to Buy" a booklet published by the Communities.gov.uk is available to download here:

Your Right To Buy (rtb.pdf, 483Kb)