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Right to Buy and Right to Acquire

Right to Buy

Eligibility

All tenants who transferred from Eden District Council on 22 September 1997 have the ‘Right to Buy’. This is a government 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.

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 depends on how long you have been a tenant. The longer your tenancy, the greater the discount you will receive, up to a maximum limit currently set at £87,200, effective from 1 April 2022.

Your discount may be reduced, by a special rule called the cost floor. This may apply if your home has recently been purchased or built by your landlord. The cost of repairs and improvements made to the property within the previous ten years will also be taken into consideration. If the cost of works carried out within the previous ten year period is greater than the market value of your home, you will therefore not receive any discount.

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 Buy 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

Rural restrictions

If the property you purchase, is designated within a rural area, special rules apply. The condition is that you may only resell it to someone who has been living or working in Cumbria for the previous three years.

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.