Right to Buy Information Guide

Transcription

1 Right to Buy Information Guide Published October 2013 Page 1 of 11

2 Eastbourne Homes Ltd Contents Introduction... 3 Repairs & Maintenance... 4 Planned Work... 4 Home Improvement and Disabled Adaptations... 5 Financial Management... 6 What will I have to pay for if I buy my home?... 6 What will I have to pay for after I have bought my home?... 7 Cancellation of the Right to Buy... 8 Valuations... 8 Selling Later On... 9 Leaseholders... 9 Right to Enfranchise... 9 Page 2 of 11

3 Introduction Before you complete the Right to Buy application form, we would like you to be aware of the following information. Hopefully this will avoid any misunderstandings and delays to your application at a later date. Eastbourne Homes Rents and Right to Buy Officer is available to answer any queries and can be contacted by phone, fax, , by letter and in person at our offices. Rents and Right to Buy Officer Eastbourne Homes Ltd Ivy House 3 Ivy Terrace Eastbourne BN21 4QU Telephone: rtb@eastbournehomes.org.uk Fax: More information can also be obtained from our website: or Department for Communities and Local Government website: or Government website: Page 3 of 11

4 Eastbourne Homes Ltd Repairs & Maintenance Once your application has been received, the following repair and maintenance procedures will apply: Houses (Freehold) a) The only repair work which will be carried out will be those jobs which, in the opinion of Eastbourne Homes, are regarded as urgent. These relate to keeping the property wind and water tight or that affect health and safety. Repairs and maintenance to our gas appliances will continue until the property is sold. b) Repairs already reported will be cancelled unless they are as described in paragraph (a) above. If you are in doubt whether or not a repair already reported is to be cancelled, please telephone Mears on (option 1). Flats and Maisonettes (Leasehold) a) The only repair work which will be carried out will be those jobs which, in the opinion of Eastbourne Homes, are regarded as urgent. These relate to keeping the property wind and water tight or that affect health and safety. Repairs and maintenance to our gas appliances will continue until the property is sold. b) Repairs and maintenance to communal areas or the main structure of the building will continue to be Eastbourne Homes responsibility to carry out, even when the property is sold. However, a service charge will then be made by us representing your contribution as leaseholder to the cost of repairs and maintenance. All requests for repairs are to be reported to the Mears in the usual way. Repairs and maintenance to communal areas or the main structure of the building will continue to be Eastbourne Homes responsibility to carry out, even when the property is sold. However, a service charge will then be made by us representing your contribution as leaseholder to the cost of repairs and maintenance. All requests for repairs are to be reported to the Mears in the usual way. Once you have read the procedures for repairs and maintenance, you may decide to defer submitting your Right to Buy application until certain defects are made good. This is your choice, but you should bear in mind that orders for repairs under these circumstances will be given normal priorities and that the value of the property may increase during the time taken for the repairs to be carried out. Planned Work Houses (Freehold) The same principles as applied to our repairs and maintenance procedure also apply to Eastbourne Homes planned work. Once your application has been Page 4 of 11

5 received any modernisation to the property through the planned work will no longer be carried out. Flats and maisonettes (Leasehold) Planned work to the internal part of a flat or a maisonette actually occupied by you will not be carried out. Planned work to communal areas or the main structure of the building will continue to be Eastbourne Homes responsibility, even when the property is sold. However, an Eastbourne Borough Council major works fund contribution charge will then be made. This will be held in trust by Eastbourne Borough Council for you to utilise if you wish towards the cost of the works. If the work costs more than you have in your fund you will have to pay the difference. Eastbourne Borough Council may be able to offer you a loan depending on your circumstances, towards these costs. Home Improvement and Disabled Adaptations Eastbourne Homes currently has a budget which provides disabled adaptations for tenants referred through the Social Services Occupational Health Department. This service is also built into our planned works. As a home owner or leaseholder you will no longer be eligible for this service. If you believe you will need a home improvement adaptation in the future there may be grants you will be eligible for to improve your home. For more information please contact: Eastbourne Borough Council 1 Grove Road Eastbourne BN21 4TW Telephone: Fax: Minicom: enquiries@eastbourne.gov.uk Lifeline also offers a 24hours responsive service 365 days of the year. This helps people live independently in their homes. For more information contact: Wealden & Eastbourne Lifeline 2nd Floor 68 Grove Road Eastbourne East Sussex BN21 4UH info@welbeing.org.uk Telephone: Fax: Minicom: Page 5 of 11

6 Eastbourne Homes Ltd Disabled adaptations for home owners can be obtained via a number if routes. For more information please contact: Social Care Direct (Adult Services) St Marys House 52 St Leonards Road Eastbourne East Sussex BN21 3UU Telephone: Financial Management Financial Advisors and Mortgage Brokers Various financial advisors or mortgage brokers have approached our tenants in the past and have offered to obtain mortgages or other financial products for them. This is not in itself illegal or even improper. However, tenants should be aware that Eastbourne Borough Council and Eastbourne Homes do not endorse or recommend any financial advisor, mortgage broker, or financial product. Whilst many mortgage brokers provide a useful service, there may be arrangement fees or other expenses involved that substantially increase the cost of the purchase. Tenants can often avoid these costs simply by going directly to banks and building societies. Sometimes tenants are asked to pay a lot of money for things that Eastbourne Homes will do for nothing, for example, Right to Buy application forms are available for free from us. You may be offered money as part of a deal under which the company ends up owning the property. This can result in you paying a higher rent in the long term, or you may find that the money you receive from the company is not enough to prevent you from becoming homeless. In addition please note that if you enter into such an agreement in advance of the purchase or within the discount repayment period, then this will trigger the repayment of the discount. Please do not hesitate to contact Eastbourne Homes if you would like further help with your Right to Buy application or if you would like to verify any of the information you have been given. What will I have to pay for if I buy my home? Your solicitor who will act on your behalf to make sure that everything is done properly. You will have to pay for his time and for disbursements costs that he incurs on your behalf (e.g. local authority and Land Registry searches). Survey Eastbourne Borough Council will not carry out a survey of your property, but you are advised to have one of your own carried out. A survey can cost approximately between 250 and 600 and if your home has any problems you may need to consider further surveys which could cost the same again, or more. Page 6 of 11

7 Stamp Duty this is a tax on the sale of the property and is calculated as a percentage of the property s purchase price. Your solicitor will be able to advise you about this. Valuation fees and mortgage costs Eastbourne Borough Council will not charge you when it carries out the valuation of your property. If you are buying your property with a mortgage, then the mortgage company will probably want to carry out its own valuation. They usually charge for this and many mortgage companies also charge an administration fee for arranging the mortgage. Other costs - sometimes companies will ask tenants to pay for things that we will do for free please note that all right to buy forms are free of charge and we do not charge for the valuations that we carry out on the properties. Discount repayment on deferred sale agreement - please note that if you enter into a deferred sale agreement in which a company will end up owning your property, then a proportion of the discount will have to be repaid as from the date the agreement is entered into. What will I have to pay for after I have bought my home? Although you will no longer pay rent to the council, you will have other financial commitments: Mortgage repayments - you will have to pay the mortgage company at the rate you agreed with them when you took out your mortgage. You will also have to pay the charges for any other loan you take out which is secured on the property for example, for home improvements. Please note that although you may have been able to claim housing benefit as a tenant, as an owner-occupier you will not receive any housing benefit to help with your mortgage costs. If you do not make payments as required by the mortgage / loan company, they can take action to repossess your home. The Council does not have to give you another tenancy if you lose your home in this way. Buildings / contents insurance - you will need to continue to insure the contents of your home and if you live in a house you will also need buildings insurance. If you live in a flat you will be charged buildings insurance within the service charges you will pay. Life insurance / mortgage payment protection - your mortgage lender will probably insist that you take out life insurance and / or mortgage protection insurance to cover the cost of your mortgage. Service bills - you must continue to pay your Council Tax and your utility bills such as gas, electricity, telephone, water and sewerage. Repairing and decorating costs - you will be responsible for repairing and decorating your home. Things that the council might have done for you as a Page 7 of 11

8 Eastbourne Homes Ltd tenant for example, replacing boilers, kitchen and bathroom fittings, repairing the electrical wiring or plumbing, will now be your responsibility. Maintenance of the freehold - if you live in a house you will own both the building and the land that your home is on. As a freeholder, you will be responsible for looking after both the inside and outside of your home, including any garden and fences sold with your home. If you live in a flat or maisonette you will be responsible for the upkeep of any garden area included in your property. Service Charges - if you live in a flat or maisonette and become a leaseholder, you will own your own home, but not the building or land that it is on. You will be required to pay service charges for any services the council provides to the building or land. If you are in receipt of any benefit you may only receive limited financial assistance with your ground rent, insurance, service and maintenance charges and costs relating to Decent Homes works. When you are served the S125 offer notice you will also be given details regarding the service charges you will be required to pay. This will also state any planned works estimated within five years and will detail your contribution. As a leaseholder you will be charged ground rent of 10 per year. You must make arrangements to pay your charges as failure to pay may result in the loss of your home. You should also note that within the leases are clauses relating to domestic violence, harassment and acts of hate crime which could also result in the loss of your home. Cancellation of the Right to Buy Should you wish to cancel your application, you can do so at any time. You simply advise us in writing. Your property will then be returned back onto the normal maintenance schedules. Any defects to the property which have occurred whilst your Right to Buy application was being processed will be dealt with in the normal way. Should you have any queries regarding the above procedures, please contact the Rents and Right to Buy Officer on Valuations The valuation date, is the date your Right to Buy application is received by Eastbourne Homes. This valuation date is important, as it means that the value of the property will be based on that date regardless of any increase or decrease in the property market generally. Providing you are eligible for the Right to Buy scheme, the details of your property will be passed to the Valuer. They will contact you to arrange a date Page 8 of 11

9 and time to visit your property. When inspecting the property the Valuer will take into account any defects and the general age and condition of the property. You may have undertaken some improvements in your home or have matters relating to your home which you would like the Valuer to take into account. If this is the case please complete the Valuation Checklist Form, which is included with your application form. Selling Later On If you buy your home under the Right to Buy, you can sell it whenever you like, but if you sell it within the discount repayment period you will have to re-pay all or some of the discount. Leaseholders Right to Enfranchise Leaseholders now have the right to buy the Freehold of the block as a group if they, and the building, qualify. This is known as enfranchisement. To qualify certain conditions have to be met. No more than four people can be joint owners of one Freehold. For further information about becoming a Leaseholder, please contact: Leaseholder Administrator Eastbourne Homes Ltd Ivy House 3 Ivy Terrace Eastbourne BN21 4QU Telephone: incomegeneration@eastbournehomes.org.uk Fax: For further details on the Right to Buy, please see the Communities and Local Government booklet enclosed with your Right Buy application form, or visit Department for Communities and Local Government website: Page 9 of 11

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