creating communities to be proud of
right to buy
Thinking of buying your home? Think about the costs involved...
The decision to buy a home is probably the biggest financial decision most people will ever make and it is a decision that should not be taken lightly. We advise you to seek independent legal advice about your circumstances and independent financial advice about the types of mortgage that are available to you. You will also need to employ a solicitor and surveyor. All these fees will need to be paid by you. You will also have to pay the land registration fees and mortgage costs and stamp duty if applicable. You may find the following websites and links useful.
Communities and Local Government
Please note: When you click on any of the links above you will leave the Shoreline Housing Partnership website and view the chosen website in a new window.
The costs of buying your home
As well as the initial purchase price there are numerous other costs to consider when buying your home. Firstly, unless you are buying your home with cash, you will need a mortgage, which will have to be repaid with interest.
There are a number of different mortgage packages available and you should think carefully about which is the right one for you. For advice on mortgages you can visit any bank, building society or financial advisor. If you cannot keep up the repayments on your mortgage your lender may go to court and apply to take over your home. We are not obliged to offer you another tenancy if you lose your home in this way.
Other commitments
In addition to a mortgage, there are also many other regular costs which home owners normally have to pay:
- Water rates (these will vary depending on whether your supply is metered or not)
- Council tax (a typical Band A property in North East Lincolnshire starts from £932 per year)
- Buildings insurance
- Contents insurance
- Repair and maintenance costs (this may include works such as fencing, electrics, windows, roofing and plumbing)
One-off costs
There are also several one-off costs incurred during the purchase of a property which are the responsibility of the purchaser:
- A solicitor or licensed conveyancer will need to look after the legal side of the purchase. (Prices can vary from £300 upwards)
- A survey of the property should be carried out. This can cost between £250 and £600 depending on the type of survey you have carried out.
- Most banks and building societies charge for arranging a mortgage, and also for the valuation of the property which they are obliged to carry out.
- Once the sale is complete you must register with the Land Registry as the new owner of the property.
- Stamp duty has to be paid on any property purchases costing more than £125,000.
Please note: Where costs have been provided they are for illustrative purposes only, purchasers should make their own enquiries directly.
Remember your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.
Beware of Door to Door sales people
Shoreline Housing Partnership tenants have been contacted by companies offering to help them buy their house, flat or maisonette. They may offer a mortgage, legal services or an ‘all-in’ package that may include improvements to their home after purchase.
We are concerned that tenants who take up these offers may be talked into financial deals and commitments that they had not bargained for and cannot afford. At the very least, they may be paying hundreds or even thousands of pounds for some services that they are entitled to for free under the Right to Buy rules. Be careful of signing deals on your doorstep. Ask what is in it for them and always get independent financial advice. Never sign any loan agreement unless you have read the terms and conditions, you are satisfied with them, and you are fully aware of the commitment you are entering into.
Be very wary of anyone who tries to tell you that the Right to Buy scheme is going to end. The Government has made it clear that the scheme is NOT about to end.
Our advice to our tenants who are thinking of buying their home is to contact the Estates team on 0845 849 2000 option 2.
The Preserved Right to Buy (PRTB)
The preserved Right to Buy is a statutory right given to secure, former tenants of North East Lincolnshire Council to buy their homes. Tenants who transferred from North East Lincolnshire Council and who have held tenancies for two years or more (or 5 years for new tenancies which commenced after the 18 January 2005). The preserved Right to Buy is available provided you qualify as a secure tenant under the Housing Act 1985 however there are some exceptions:
You may not exercise the Preserved Right to Buy if:-
- We are not your landlord; or
- You have not spent a minimum total period of 2 years in social housing or armed forces accommodation (or 5 years where your tenancy commenced on or after 18th January 2005);or
- You do not occupy the property as your main or principal home; or
- Your home is let to you in connection with your employment; or
- Your home is designed and has features making it suitable for people who are physically disabled, or for occupation by people suffering from a mental disorder or who have special needs or is particularly suitable for elderly residents, and in each case is one of a group of such properties; or
- Your home was first let before 1st January 1990, has features particularly suitable for elderly persons (but not in a group) and in each case satisfies other requirements we will outline on request; or
- We have served you with a notice that we intend to demolish your home within 2 years (note we may serve you with a notice that we intend to demolish your home within 5 years in which case you may make an application to exercise the PRTB but we are not obliged to complete); or
- A court order is made obliging you to vacate your home by a specific date or the terms of suspended court order are breached; or
- You are or are about to be declared bankrupt or you have arrangements in place with your creditors; or
- You are the subject of an Anti-Social Behaviour Order and your tenancy is temporarily demoted to an assured shorthold tenancy (you may however have a Right to Acquire (“RTA”) at the end of the demotion period). You cannot regain your PRTB.
There are other exclusions. If you are thinking of buying your home you should contact the Estates team on 0845 849 2000 option 2 and we will provide you with an information pack.
The Right to Acquire
New tenants of Shoreline Housing Partnership have the right to purchase their home under the Right to Acquire scheme.
The maximum discount under the Right to Acquire is £9,000. To qualify you will need to have spent at least two years as a public sector tenant for tenancies which commenced before 18 January 2005 or five years as a public sector tenant for any tenancy created on or after the 18 January 2005.
Download a Right to Acquire application form (
469kb)
Flats and Maisonettes
These cannot be sold freehold but the long-term lease can be bought for a fixed period (usually 125 years) with an annual ground rent of £10.
Leaseholders must pay service charges for the upkeep of the structure and communal areas of the building. As well as major repairs and improvements, service charges also cover things like staircase lighting, caretaking, decorating, lift maintenance, door entry systems, etc.
If you decide to buy your flat or maisonette we will give you an estimate of what the annual service charges will be for the first 5 years of your lease.
Further Information
For free advice about the Preserved Right to Buy or to request an application form (RTB1) or a copy of our Guide to the Preserved Right to Buy, email your request to legal@shorelinehp.com or telephone the Estates team on 0845 849 2000 option 2. Telephone enquiries can be made Monday - Friday 8.30 am - 5 pm. An answering machine service is available at other times.
You can also download an application form from this site or pick one up in person from our Customer Service Centre.
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