DELEGATED POWERS REPORT NO. 246 Control sheet The following MUST be completed at each stage of the process

Transcription

1 DELEGATED POWERS REPORT NO. 246 Control sheet The following MUST be completed at each stage of the process All reports 1. Democratic Services receive draft report Name of DSO Nick Musgrove Date 26/3/ Democratic Services cleared draft report as Name of DSO Nick Musgrove being constitutionally appropriate Date 26/3/ Finance clearance obtained from (report author Name of Fin. officer Helen Gardiner to complete) Date 26/3/07 4. Staff and other resources issues clearance Name of Res. officer Nick Walkley obtained from (report author to complete) Date 26/3/07 5. Legal clearance obtained from (report author to Name of Legal officer Robin Bloom complete) Date 27/3/07 6. CPO clearance obtained from (report author to Name of CPO officer Julie Pail complete) Date 23/03/07 Name of Equalities Of Julie Pal Date 23/3/07 7. The above process has been checked and Name Paul Shipway verified by Chief Officer or his/her Deputy Date 29/3/07 (report author to complete) 8. Completed Report, of Cabinet Member or Chief Name of DSO Nick Musgrove Officer, & date, received by Democratic Date 3/4/2007 Services for publishing 9. Report published by Dem Services to website Name of DSO Nick Musgrove Date 3/4/ Officer reports (Exec. Function) and all Council Name of DSO Nick Musgrove function reports: Head of Service informed report can be implemented. Date 3/4/2007 Cabinet Member reports only also complete the following steps All other reports for further steps go to 19 below 11. Expiry of call-in period Date 12. Report circulated for call-in purposes to COSC Name of DSO members & copied to Cabinet & Head of Service Date 13. Report called in? Y/N 14. Reports not called in: Head of Service informed Name of DSO report can be implemented (Now go to step 19) Date Reports called in, complete following steps: 15. Information passed to Head of Service and Name of DSO DSO for COSC Date 16. Report listed for COSC meeting on Date 17. Head of Service informed report referred back Ref/Imp (Ref), or can be implemented (Imp) 18. Reports exempted from call-in: Date PDSO informed for report to Council. Date reported to Council 19. All reports: Date referred to OSC Manager; 20. Referred to OSC Name of DSO Date Council meeting Name of DSO Date Meeting Date

2 ACTION TAKEN UNDER DELEGATED POWERS BY OFFICER IN CONSULTATION WITH CABINET MEMBER(S) (EXECUTIVE FUNCTION) Subject Social Homebuy Pilot Scheme Implementation Officer taking decision Head of Housing Cabinet Member(s) Cabinet Member for Community Services Date of decision 03 April 2007 Summary Officer Contributors Status (public or exempt) Wards affected Enclosures Reason for exemption from callin (if appropriate) A pilot for Social Homebuy was identified in the Key Priority Plan Social Homebuy is a method of providing access to low cost home ownership for council tenants. The scheme allows tenants to buy an equity share in their home from the Council. This report seeks agreement for the scheme to be implemented with effect from 1 st April Paul Shipway, David Attridge Public All Appendix 1 : Scheme Summary, Appendix 2: How to Apply Booklet Not Applicable Contact for further information: Paul Shipway Serial No. 246

3 1. RELEVANT PREVIOUS DECISIONS 1.1 Council Meeting 7 th March 2006, Decision no. 185 which decided that the Chief Officers be authorised to implement the detailed proposals set out in the Key Priority Plans within the resource constraints identified, in consultation with Cabinet Members as appropriate. 1.2 Delegated Powers Report number 103, 1 November 2006, which confirmed the agreement of the Cabinet Member for Community Service to: Proceed with the recruitment of staffing resource on a temporary or secondment basis to set up and administer Social Homebuy Pilot. Expenditure of up to 30,000 on associated start up costs of Social Homebuy Pilot Scheme 2. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS 2.1 The Social Homebuy scheme will support the council s Housing Strategy, which seeks to provide greater choice for those wishing to access home ownership. Social Homebuy will provide a new option for council tenants who wish to become homeowners alongside existing schemes such as the Right to Buy, and other newer initiatives such as discounted market sale. 2.2 The Corporate Plan identifies setting up the Social Homebuy scheme as an action under the Council s Supporting the Vulnerable priority of helping people to stay in control of their own lives by offering independence, choice and availability of affordable housing. 3. RISK MANAGEMENT ISSUES 3.1 Risk 1 - Demand falls short of expectation and start up costs cannot be recovered from capital receipts generated by equity sales. It is estimated that on average, each sale at a minimum 25% equity share will generate a capital receipt of 43,000. This risk has been mitigated by limiting implementation costs associated with the pilot scheme to 60,000, which would be recovered by achieving two sales at a 25%.share. Demand for the scheme will be further controlled by limiting completed applications to 20 during the pilot - this will allow the outcomes of the pilot to be fully evaluated before making the scheme more widely available. 3.2 Risk 2 - Purchasers are unable to sustain homeownership. This risk will be mitigated by referring applicants to an independent financial advisor (IFA) who will assess the amount of equity the applicant can afford to purchase. The IFA has an established track record of working with housing associations who operate shared equity schemes, and there will be no obligation on the part of the applicant to secure their mortgage through the IFA once the assessment has been completed.

4 4. EQUALITIES AND DIVERSITY ISSUES 4.1 The pilot period will offer 20 applicants the chance of purchasing equity in their properties. This will be based on a first come first served basis with any candidates who do not qualify giving way to the next in line. 4.2 There are mandatory qualification criteria as stated in the ODPM (now CLG) Social Homebuy - Guidance for Local Authorities April 2006 document. 4.3 As part of the pilot scheme an equalities impact assessment will be undertaken. 5. FINANCIAL, STAFFING, ICT AND PROPERTY IMPLICATIONS 5.1 Resources are required to set up and administer the scheme and manage the day to day running. These will be recoverable from receipts received through sales of equity shares in Council properties. 5.2 Staff costs are approximately 30,000 for a 6 th month secondment ending May Miscellaneous start up costs, including publicity, applications forms and legal advice are 30,000 ending May Completion of any sales may take up to eight months requiring the secondment to be extended until at least April It is anticipated that staffing costs beyond May 2007 will be contained within existing resources 5.6 These costs will be drawn from HRA reserve, which currently stand at 3.074m. The HRA reserve will be replenished from receipts received, and it is estimated that at least two sales at the minimum 25% equity share will need to be completed to achieve this. 5.7 The financial modelling of the revenue impact of this pilot shows a marginal cashflow benefit to the Housing Revenue Account assuming that the capital receipt is used to reduce the need for prudential borrowing. Additional income from the proposed charges has been taken into account in revenue budgets for 2006/7 for both the Housing Revenue Account and Housing General Fund. 5.8 The sale of properties will decrease the number of council units available for secure tenancies. However, 100% of receipts are available for re-investment into affordable home ownership and tenancy schemes, once any costs of administering the scheme have been deducted. 5.9 The scheme will exclude any estate being regenerated or large concrete panel system build.

5 6. LEGAL ISSUES 7. CONSTITUTIONAL POWERS 7.1 The Constitution Part 3, Responsibility for Function Section 6.1 Chief Officers can take decisions, in consultation with Cabinet Member concerned to discharge the functions allocated to them or dealt with them or staff, except for matters specifically reserved for Executive Members, Cabinet Meeting, Cabinet Committees, Committees or Council. 7.2 Paragraph 6.6 In addition, in consultation with the Cabinet Member concerned, Heads of Service have the power to agree virements up to 100,000 within a budget head. 8. BACKGROUND INFORMATION 8.1 The Social Homebuy Pilot was announced by the Government in April 2005, and provides existing council and housing association tenants to buy an equity share in their home. 8.2 Councils and housing associations have been invited to run pilot schemes, which will run until March Receipts from purchases can be used to fund the administration costs of the scheme and new social housing. 8.4 Rising property costs have seen a dramatic reduction in sales of council properties under the Right to Buy scheme, and Social Homebuy will provide a less expensive form of home ownership. 8.5 The Pilot scheme will be administered by Barnet Homes on behalf of the Council 8.6 Appendix 1 provides a summary of the proposed scheme 8.7 Appendix 2 provides full details of the proposed scheme in the form of an information booklet that will be issued to applicants. 9. LIST OF BACKGROUND PAPERS 9.1 ODPM Social HomeBuy Guidance for Local Authorities April Any person wishing to inspect the background papers listed above should telephone David Attridge, CONSULTATION WITH CABINET MEMBER(S) 10.1 The Cabinet Member for Community Services has been consulted and agreed with the action on 03 April OFFICER S DECISION

6 I authorise the following action: 11.1 Implementation of the Council s Social Homebuy scheme as summarised in Appendix 1 and described in Appendix 2 with effect from 1 st April 2007,subject to permission from the Secretary of State which has been applied for. Signed Date Signed by Nigel Hamilton Head of Housing 3rd April 2007

7 Appendix 1 Summary of Barnet Council s Pilot Social Homebuy Scheme for Council Tenants. The Office of the deputy Prime Minister (ODPM) announced an intention to introduce the Social Homebuy Scheme for council tenants in June The scheme will be voluntary for all local authorities. It will allow tenants to buy a stake in their property where they cannot afford the full purchase price. The minimum stake that can be acquired will be 25% and rent will charged on the equity share remaining with the council. Key features of the Council s scheme are as follows: Minimum purchase is 25% of the share of the value of the home with a maximum of 100%. Initial purchases can be made at 35%, 50%, 60%, 75% or 100% of the full property price. The equity purchased would qualify for a discount on the same basis as the Right to Buy Scheme, but pro rata depending on the proportion of equity purchased. Purchasers can increase their shares in the equity of the property in tranches of 10% up to full ownership A rent will be charged at 2.5% of the equity share remaining with the Council, with annual increases capped at RPI + 0.5% Leaseholders will pay 100% of service charges Major works estimates will be provided at the start of the lease for a fiveyear period. The council will not charge more than has been estimated during this period and calculated pro-rata on the equity share they own at the point of billing. At the end of the five-year period, the leaseholder will be responsible for 100% of major works charges for their property. The council will obtain buildings insurance where Barnet owns an equity stake this will be charged as part of the service charge. Where the leaseholder wants to sell the property the Council will hold the nomination rights and will advertise the property with other shared ownership schemes. If a property is sold within the first five years of ownership the discount will have to be proportionally repaid. Key eligibility criteria are as follows: All applicants must pass a financial assessment with an Independent Financial Assessor (IFA) who will confirm how much of the property can be purchased based on the applicants individual situation There will be no obligation to secure a mortgage or loan from the IFA Homes that are on estates affected by any regeneration or redevelopment programme are excluded from this scheme Homes that are built through a system that the council considers unsuitable to sell are excluded from this scheme

8 Homes where there has been any proposal by the council to demolish them are excluded from this scheme The applicant must satisfy the key Right to Buy eligibility criteria Key financial features are as follows: 100% of Capital Receipts can be kept for re-investment in affordable housing The financial modelling of the revenue impact of this pilot shows a marginal cash flow benefit to the Housing Revenue Account assuming that the capital receipt is used to reduce the need for prudential borrowing.

9 Appendix 2 Social Homebuy for council tenants April

10 Index Introduction page 3 How to apply page 3 Step 1 Eligibility criteria page 3 Step 2 Making an application page 4 Step 3 Initial qualification page 5 Step 4 Secondary qualification page 5 Step 5 Valuation page 5 Step 6 Final assessment page 5 Step 7 The discount and offer page 5 Step 8 Accepting the offer page 6 Step 9 Conveyancing page 6 Step 10 Completion page 7 Purchase costs page 7 Regular household bills page 8 Buying more of your home - staircasing Selling your home Repayment of discount page10 page10 page10 Appendix of qualifying criteria page 11 2

11 Introduction Would you like to buy your home, but can t afford to under the present Right to Buy scheme? The government s Social Homebuy is a low-cost home ownership option that can help. It is being piloted from April 2007 to March 2008 by Barnet Council, so tenants can buy a share of their present home. During the pilot period we will only be able to complete 20 sales based on a first come first served basis. If we meet our quota for sales in this time, applications from other qualifying tenants will be put on a waiting list and contacted when the pilot period is over. How it works You may buy a share of your home, starting with as little as 25% if you wish. You will also be able to make an initial purchase of 35%, 50%, 60%, 75% or the full purchase price. The council will retain ownership of the rest and will charge rent for this. You will be responsible for keeping your home in good repair. You can buy more shares as you wish, until you own the property outright. Tenants opting for Social Homebuy will receive a proportion based on the Right to Acquire discount. Currently the maximum discount is 16,000. The discount will also apply to any further shares of the property that are purchased after April Most secure tenants will qualify for Social Homebuy if they meet the initial qualification criteria, similar to those of the Right to Buy scheme. There are some exclusions. A list of eligibility criteria is given in the appendix. How to apply Step 1: Check the eligibility criteria below for you and your home before requesting and completing an application form. Criteria You must be a secure tenant whose tenancy started before 18 January 2005 (and have been a public sector tenant continuously since that time) and have spent a minimum of two years as a public sector tenant. For tenancies created on or after 18 January 2005, Social Homebuy will be available when you have been a tenant of a public sector landlord for at least five years. In addition You must not be in arrears and have maintained a good rent account (for six months) and not have broken any part of your tenancy agreement. If you have a joint tenancy, both tenants must sign the application otherwise it will be refused. 3

12 You may invite family members to join in the application provided they have lived with you at the property for the previous 12 months as their only or principal home. They may be asked for documentary proof. A legal partner would not have to fulfil the 12 month rule. Tenants not eligible include those who are undischarged bankrupts or with a bankrupt petition pending, those subject to a formal creditors agreement made under the Insolvency Acts, tenants who are obliged to give up possession of tenant properties in pursuance of an order of the court, and those who are the subject of a suspended possession order (whether or not they are in breach of the order). Service tenancies and temporary lettings do not qualify. Properties that are excluded Properties on the regeneration estates, Spur Road, Stonegrove, Dollis Valley, West Hendon and Grahame Park, and re-development estates in Cricklewood do not qualify. Other large panel system blocks, Silk House and Shoelands Court are also excluded. Some other properties are not eligible if they are let for specific purposes due to special design or requirements. These include all sheltered housing schemes, properties for people with physical disabilities, intensive support needs, elderly people or people suffering from a mental disorder where social services or other special requirement are provided. Step 2 Making an application Call or us for your application pack and return it to: Home Ownership Service Barnet Homes Barnet House 1255 High Road Whetstone N20 0EJ Phone: homeownership@barnethomes.org If you need assistance completing the form please contact us. Barnet Homes cannot take responsibility for forms lost in the post. Where possible please deliver the documentation in person or send it by registered post. 4

13 Step 3 - Initial qualification Once we receive your application we will check your home is eligible for Social Homebuy using the criteria listed above and shown in more detail in the appendix. If you have any questions regarding the criteria please contact us. Step 4 Secondary qualification We will confirm whether the initial criteria have been met and ask for details of your income and savings within four weeks. This is to check you will be able to afford the minimum 25% share and purchase costs. Step 5 - Valuation When the initial financial assessment is completed Barnet Homes will ask its valuers to carry out a valuation inspection. The valuation will be set at the date you applied for Social Homebuy. We will advise them about any improvements you have carried out so these can be disregarded. If your home is a flat, we provide the costs of any future work and service charges to help them make a fair valuation. If you do not keep your appointment or our valuers have difficulty contacting you, they may have to provide a valuation based on an external inspection. Obviously this valuation may not be as accurate. District Valuer s Determination If after receiving the priced offer you do not agree with the valuation you may within 3 months write to the Home Ownership Service requesting that the District Valuer re-values your home. Both sides must accept the District Valuer s decision whether it is higher or lower than the original valuation. Step 6 Final assessment When we have received the valuation we will ask you to contact an independent financial advisor (IFA). We will provide figures including the actual valuation, annual service charge and major work costs for the IFA. The IFA will assess, taking all your financial details into account, the maximum amount you can borrow and the percentage of the property you can purchase. The IFAs may discuss mortgages and other financial products with you, but we emphasise you are not obliged to buy any product recommended to you by the IFA. You must also be aware Barnet Council and Barnet Homes are not liable in any way for any advice given by the IFA. Step 7 The discount and the offer 5

14 After the financial assessment we will calculate your discount. The maximum discount is currently 16,000. The discount is proportional to the percentage you buy as follows. If you buy 25% you will receive a maximum discount of 4,000 If you buy 35% you will receive a maximum discount of 5,600 If you buy 50% you will receive a maximum discount of 8,000 If you buy 60% you will receive a maximum discount of 9,600 If you buy 75% you will receive a maximum discount of 12,000 If you buy 100% you will receive a maximum discount of 16,000 We will send you an offer letter after the final assessment and when all necessary criteria are met. It will contain the following. The maximum percentage of your home we will sell you The names of the applicants who are allowed to buy The address of the property The market value and date on which it is based The discount amount and percentage The purchase price A sample lease Any known structural defects. For a flat, it will also state the following. The start date and length of lease and ground rent The estimated service charges The estimated future major work The dates of the reference period during which the leaseholders costs are limited. Step 8 - Accepting the offer You must decide whether you want to accept or refuse the offer. If you want to continue with the purchase you will need to arrange a mortgage. Not all lenders are familiar with shared ownership so be prepared to shop around and mention shared ownership at the outset. There are different types of loans on offer so discuss the options and your financial situation in detail with the lender to ensure you do not stretch your finances to the limit. You will also need to instruct a legal advisor to carry out the legal work associated with the purchase on your behalf. The acceptance form should be returned to us without delay, telling us what percentage you would like to buy. We will arrange for a surveyor to visit you at home to draw up plans, and then instruct the council s lawyers to draw up the sale documentation to forward to your legal advisor. 6

15 The offer is open for 12 weeks. If this period expires and you have not completed your purchase, we may serve you with a notice warning you the offer will be withdrawn after the expiry of the notice period. Step 9 Conveyancing Conveyancing is the legal and administrative work associated with the transfer of ownership of land or buildings from one owner to another. Barnet Homes solicitors will act on our behalf and will prepare all necessary documentation for the sale of your home. Once this is ready all the documents will be forwarded to your solicitor for review, carrying out all the necessary administration and ensuring you is aware of all your right and responsibilities as a leaseholder. Step 10 Completion Your and our legal advisors will agree a completion date. We will check your rent account is clear, so the purchase can go ahead without delay. Your legal advisor will arrange payment for your share. They may have to make an additional payment for you, if a contribution to major work costs is outstanding. You will also need to pay: any outstanding rent, and a quarterly service charge. When all the legal work has been completed and these payments have been received, you will become the homeowner. Please note: subletting your home is not permitted until you own 100%. Should exceptional circumstances require you to sub-let, please write to us about this. Legal Costs Purchase costs When you accept the offer you must give us the name and address of your legal advisor. You can use a legal advisor who has been recommended by family or friends or your mortgage lender may have a list. You should shop around as fees do vary. Agree the costs before you employ the legal advisor. They will be responsible for carrying out the legal work including paying fees and Stamp Duty Land Tax on your behalf. Stamp Duty Land Tax This tax is currently due on all properties valued 125, ,000 at the rate of 1% and on properties over 250,000 the rate is 3%. Stamp Duty Land Tax is liable to change by governmental consent. 7

16 You can decide whether it would be better for you to pay Stamp Duty Land Tax on 100% at this stage (assuming it is your intention to eventually own the whole property) or only pay it on your initial percentage. Mortgage Reservation Fee Certain mortgage offers are subject to this charge. Please check with your mortgage provider what the charge will be. Valuation Fee Your mortgage lender will value your home and pass the costs for this on to you. For a higher fee you can instead have a more extensive Homebuyer s or structural report. Survey Although you do not have to get a full structural survey, you should consider this option as it may uncover structural problems of which we are not aware. Rent Regular household bills After buying a share, you must continue to pay rent for the share still owned by the council. We will tell you the new rent to be paid weekly in advance, every Monday, for 48 weeks of the year. Here is an example of how the rent is calculated. If your home is valued at 200,000 and you buy 25% equalling 50,000 that leaves 75% or 150,000 in council ownership. The rent is calculated as 2.5% x 150,000 = 3750 per annum or per week (based on 48 week year). Every year the rent will increase by the rate of inflation plus up to a maximum of 0.5%. Mortgage If you have to borrow money to buy your home you should thoroughly research and understand all the terms and conditions of the mortgage. Do not sign for a loan until the lender and legal advisor has explained all the current and future payments and costs. For example there may be penalties if you wish to change lenders in the future. Consider what your repayments will be if interest rates rise or when low initial rates change. Your lender may encourage you to take out life insurance to protect your family in the event of your death or mortgage protection insurance to protect your earnings in the case of serious illness. If you are considering buying these policies, you should take independent advice. Annual service charge 8

17 If you purchase a share of a flat then no matter what percentage you buy you must pay 100% of the service charges. These cover the everyday costs of maintaining the block and estate. The service charge will include building insurance, but will not cover contents insurance or utility bills. Major work This is work that occurs for flats every few years such as external decorations, roof or lift renewal. We will give you a quote of all major work costs for the first five years of your home ownership. You cannot be charged more than the price quoted in the offer, except for an amount to cover inflation during this period. During the five years following your purchase, you will pay for major works bills in accordance to the share you own, for example if you own 50% of the property your will pay 50% of the major work charge. After the initial five years, you will be responsible for paying a 100% contribution towards major work costs. When a house is bought the up-keep and all it contains are the sole responsibility of the homeowner. This will include the building, garden and boundaries. Building and contents insurance If you live in a flat, the building will be insured by the council and premiums will be collected in your service charges. If you buy a share in a house, the council will insure the building and invoice you. We advise everyone to take out their own contents insurance policy. Utilities bills You will be responsible for all bills, such as council tax, gas, electricity and phone. As a tenant your water rates were included in your rent. However, as a leaseholder you are responsible for paying these directly to the water company. Barnet Homes will notify the water company about this. Interior maintenance You are responsible for the upkeep of your home including repairs and decorating. Any plumbing, carpentry or electrical repairs are your responsibility as well as the maintenance of any gas heating and appliances, including an annual service for gas boilers. Buying more of your home - staircasing You may want to buy another share of your home in the future, known as staircasing. You can only staircase to the next level. These are 25%, 35%, 9

18 50%, 60%, 75% and 100%. You need to demonstrate you can afford to by providing details of your income and expenditure as before. We will ask our valuers to survey your home and provide a valuation at the time of your request. You will pay for this and your own costs. We will make an offer giving you the minimum and maximum amounts we can sell you and informing you of your discount entitlement. Your rent will reduce when you buy further shares. Flat owners will have the liability for major works increased and if you are within the reference period stated in your original offer you will still benefit from that protection. Staircasing downwards will only be considered in exceptional circumstances. Selling your share Assuming you do not own 100% of your home, you must obtain a professional valuation. This should be sent to Home Ownership Services with a request that we market your home to our perspective shared ownership applicants. You will be able to sell on the open market if we have not found a buyer within set time limits. Your lease will state that during the first ten years you must give Barnet Council first refusal to buy back the property. Repayment of the discount The discount given on your initial share is subject to repayment if you resell within five years. The amount you will repay is based on the valuation of your home at the time of resale, disregarding the value of any improvements you have made. For example, if you have installed a new bathroom or kitchen, neither the cost nor the value it may have added, will be reflected in the valuation for repaying discount. You will pay as follows. Sale within year 1, all of the discount must be repaid as calculated Sale within year 2, 80% of the amount calculated Sale within year 3, 60% of the amount calculated Sale within year 4, 40% of the amount calculated Sale within year 5, 20% of the amount calculated No repayment is required after year 5. Here is an example of the calculation for repaying discount at the time of sale. If your home was valued at 160,000 and you bought 50% ( 80,000) with a 16,000 discount applied, you would have received a 50% or 8,000 discount 10

19 on your share. The discount would then be equivalent to 10% of the value of the 50% share you bought. If the property s value increased and your 50% share was sold for 100,000 during year 1, you would need to repay 100,000 x 10% = 10,000. If the same 50% share was sold within year 3 for 150,000, the repayment due would be 60% of 150,000 x 10%, which is 9,000. If property value falls, the same calculation will be used. For example, if the property value dropped and the 50% share was sold for 60,000 within 1 year, the repayment would be 60,000 x 10% = 6,000. Tenant qualification criteria Appendix You cannot purchase under Social Homebuy if the following apply. The property is not the sole and principal home of at least one tenant who has applied to buy. You are the legal partner or family member of a secure tenant and that secure tenant does not wish to buy. You are a joint tenant and one or more of the other joint tenant(s) do not wish to buy and refuse to allow you to make an application in your own name. Permissions for one or more tenant(s) to make an application must be in writing from the joint tenant(s) who do not wish to buy. You are applying jointly with a secure tenant(s) as a family member but do not live and have not lived in the premises continuously for the immediate 12 months before the application was made. You are a tolerated trespasser. You are not a secure tenant. At least one tenant who wishes to purchase does not meet the qualification period. The qualifying period is total of two years as a tenant or licensee of a public authority or other registered social landlord if: your tenancy was granted before 18 th January 2005 and has been continuous or you have had a continuous series of tenancies or licenses from before 18 th January 2005 (but you must hold a secure tenancy at the time you make your application. Otherwise the qualifying period is five years. You have a bankruptcy petition against you; or a receiving order against you; you are an undischarged bankrupt; or you have made a composition or arrangement with your creditor, the terms of which are still outstanding. If an application is being made to a court due to anti-social behaviour in respect of: 1. a demotion order which alters the status of your tenancy from a secure tenancy to a demoted tenancy, or 11

20 2. possession under ground 2 of schedule 2 of the Housing Act 1985 relating to a breach of tenancy conditions, or 3. a suspension order under section 121a of the Housing Act Property qualification criteria You cannot purchase the property if the following apply. The council leases the property for another landlord and there are less than 21 years remaining on that lease where the property is a house or 50 years otherwise. The property forms part of, or is within the enclosure of, a building that is held mainly for purposes other than housing or is situated in a cemetery and the property was provided to you or your predecessor as part of a job. The home has features that are substantially different from those of ordinary homes and is designed to make it suitable for occupation by physically disabled persons. It must also be one of a group of homes that the council normally lets to physically disabled persons. It may also be one of a group of homes that the council normally lets to physically disabled persons and have services or facilities provided in close proximity to the group of homes to assist those persons. The home is one of a group of homes generally let to people who are suffering, or have suffered, from a mental disorder, and special services or facilities are provided to them. The home is one of a group of homes that are particularly suitable for occupation by elderly persons and that the council normally lets to such persons and physically disabled persons. There may be special facilities provided to the group of homes to assist those persons. The home is particularly suitable for occupation by elderly persons and was let to the tenant or predecessor for occupation by a person aged 60 years or more. Homes where there has been any proposal by the council to demolish them. Homes that are on estates affected by any regeneration or redevelopment programme. Homes that are built by a system the council deems unsuitable to sell. 12