Right to buy
Higher discounts from April 2012
Tenants who are eligible to buy their homes through the Right to Buy scheme could now receive a much larger discount on their purchase price.
In early April 2012 the Government introduced a new system which means the maximum discount available to Wandsworth Council tenants has risen from £16,000 to £75,000.
This will mean more working households will now be able to afford to buy their home from the council.
The money raised through selling council homes will be used to build more affordable homes for local people in housing need.
The level of discount each tenants receives through Right to Buy will depend on the length of time they have lived in the property, and whether it is a flat or a house.
For houses: tenants who have lived in the property for at least five years will be entitled to a discount of 35 per cent of its value. For every extra year they have lived in the house beyond the first five years they will receive an extra one per cent discount. The maximum discount for houses will be capped at 60 per cent of the property value and cannot exceed £75,000.
For flats: tenants who have lived in the property for at least five years will be entitled to a discount of 50 per cent of its value. For every extra year they have lived in the flat beyond the first five years they will receive an extra two per cent discount. The maximum discount for flats will be capped at 70 per cent of the property value and cannot exceed £75,000.
People who are eligible under Right to Buy include secure tenants of both local authorities and non-charitable housing associations if they have been public sector tenants for at least five years.
Right to Buy examples
If you have been the tenant of a flat for five years you are entitled to a 50 per cent discount through Right to Buy. If the market value of your flat is £150,000, your discount will be worth 50 per cent of £150,000 = £75,000.
This means you could buy your flat from the council for just £75,000.
If you have been a tenant of a house for five years then you are entitled to a 35 per cent discount. If the market value of your house is £200,000, your discount will be worth 35 per cent of £200,000 = £70,000.
You pay us the market value less the discount - meaning you could buy your house from the council for £130,000
These figures are only a rough guide to potential prices and discounts. Individual circumstances will differ.
