Tag: freehold property
-
- Posted by admin
- 06 July 2012
- conveyancing, News, Property law
With effect from 2 April 2012 the maximum right to buy discount for council tenants has been increased to £75,000.
This constitutes a considerable change in policy by the present government. Previously, right to buy had become unattractive , by capping the amount of discounts according to location. In most of greater London for example the maximum discount was only £16,000.
The right to buy discount available depends on the amount of time the tenant has occupied the property. For freehold houses, the discount starts at 35% and increases at 1% per year to 60%. For leasehold flats the starting figure is 50%, rising to 70% at 2% per annum. For example, if you wanted to buy a flat worth £200,000 and had been a public sector tenant for ten years, you would qualify for a 60 per cent discount (£120,000). However, the maximum discount is £75,000. This means that if the flat was worth £200,000, you could buy it for £125,000. It is also important to realise that if the property is sold within 5 years of the right to buy then some of the discount will have to be repaid. More information on eligibility and discounts can be found on the Direct Gov website.
Newnham & Jordan Solicitors
5 Willow Drive Wimborne, Dorset, BH21 2RA UK
office@newnham-jordan.co.uk • 0845 680 7871
