Eligibility
All tenants who have had a public sector landlord tenancy for 3 years. This is a ‘Homes England’ run scheme that allows you to purchase your home at a discounted price. The property should be your only or principal home and is self-contained within Penrith, rural areas are excluded from this scheme.
There are exceptions to this depending on the type of property. For example, if the property is either sheltered accommodation, designated for persons over the age of 55, adapted for a disabled person, or if a demolition notice has been served in respect of the property, they cannot buy their home.
You may buy your home jointly with members of your family who have lived with you for the past 12 months, or with someone who is a joint tenant with you.
You cannot buy your home under this scheme if you are eligible for the Right to Buy, if a court makes a possession order, which says that you must leave your home. Neither can you buy your home if you are an undischarged bankrupt, have a bankruptcy petition pending against you, or an arrangement has been made with creditors (people you owe money to) and you still owe them money.
Difference between a house or flat purchase
If you buy a house, you will purchase the freehold and will own the property outright. If you buy a flat or maisonette, you will purchase a long lease. This allows you and your successors to live in it for a fixed time. The block will be owned by Eden Housing Association, who will be responsible for the upkeep of the building as a whole and of any communal areas.
As a leaseholder, you will be required to pay ground rent, insurance and a service charge. Service charges can be several hundreds of pounds each year, or much more if the block requires major repairs or maintenance, such as a new roof or windows.
What discount can I receive?
The amount of discount for the Eden area is £9,000.
Repayment of discount
This scheme requires you to buy 100% of the value of your home. You are not allowed to sublet the property within the first five years of ownership. If you sell your home within the initial five years of the original purchase, the discount you receive will be repayable.
If you sell within the first year of purchase, the whole discount will have to be repaid. Four fifths must be repaid if you sell in the second year, three fifths in the third year, two fifths in the fourth year and one fifth in the fifth year. After 5 years, you can sell without repaying any discount.
Right of first refusal
If you purchase your home under the Right to Acquire and wish to resell within 10 years, you will be required to offer it to Eden Housing Association in the first instance, at full market value. The market value must be agreeable between both parties. If your offer is not accepted, you will be free to sell the property on the open market.
Restrictive Covenants
Material change
If you wish to make any modifications to the property, which affect the external appearance of the property, consent will be required from Eden Housing Association. The current administrative fee for providing consent is £240.
If you wish to apply for the Right to Acquire, please use the link below:
Right to Acquire: application form (RTA1) – GOV.UK (www.gov.uk)
For further information, please refer to the Government website:
https://www.gov.uk/right-to-acquire-buying-housing-association-home
