Right to Buy and Right to Acquire
Right to Buy and Right to Acquire
Preserved Right to Buy
(“PRTB”) Information Note
This information is produced to satisfy the requirements of the Housing (Right to Buy) (Information to Secure Tenants) (England) Order 2005.
It is a general guide. More detailed information outlining who does or does not have the PRTB, and the process for applying for it, is available from us.
1. Who has the Preserved Right to Buy?
You may be able to exercise the PRTB if all of the following applies to you:
- You are a tenant of a member of Orbit Group (Orbit)
- You were previously a secure tenant of a local authority and became an assured tenant when ownership of your home was transferred to us.
- You have spent a minimum total period of 2 years in social housing or armed forces accommodation (this increases to 5 years where your tenancy commenced on or after 18th January 2005).
- The property is your only or main home, and you were living in it at the time it was transferred to Orbit.
- Orbit owns the freehold, or has sufficient interest in the property to grant a lease.
There are some other cases where the PRTB may apply covering the following types of cases:
- If you are a joint tenant of someone who may be able to exercise the PRTB.
- If you were assigned the tenancy by a member of your family who, immediately before the assignment, would have been eligible; or
- If you became the tenant of your house under divorce legislation in place of a person who would have been eligible; or
- If you are a family member of a previous sole tenant who would have been eligible and inherited the tenancy.
- If you are the partner of a deceased tenant who acquired the PRTB by succession.
- Please note that a family member can join in the PRTB if they can prove they have lived in your home for at least 12 months before you apply. This 12 month period does not apply to spouses or civil partners.
2. Who Does Not have the Preserved Right to Buy?
You may not exercise the PRTB if one or more of the following applies to you:
- Orbit is not your landlord.
- You have not spent a minimum total period of 2 years in social housing or armed forces accommodation (or 5 years if you were a public sector tenant for the first time on or after 18th January 2005).
- You do not occupy the property as your only or main home.
- Your home is let to you in connection with your employment.
- Your home is designed for people who are physically disabled, for people with a mental health problem, or who have other special needs, and is one of a group of such properties.
- Your home is particularly suitable for elderly residents. Please ask for more details of whether this applies to your home.
- Where we have served you with a notice that we intend to demolish your home within a specific period.
- Where a court order is made which means you have to leave your home by a specific date, or if the terms of a suspended court order are breached.
- If you are bankrupt.
- If your tenancy has been temporarily demoted to an assured shorthold tenancy in the case of anti-social behaviour.
- If you have, subsequently moved out of the original ex-local authority property to another Orbit property, which was previously owned by Orbit Spa Housing Association.
3. How Do I Claim the Preserved Right to Buy?
We will supply you with a form on request. This is called a RTB1.
- You must complete the RTB1 form and return it to us.
- We will let you know in writing if you qualify for the PRTB within 8 weeks of receipt of your application.
- If you qualify for the PRTB a valuer will contact you and arrange to visit your home to carry out an open market valuation.
- Within 8 weeks (if you live in a house) or 12 weeks (if you live in a flat) we will send you a written offer notice setting out the sale terms.
- If you wish to proceed on the terms set out in the offer notice, you must advise us no later than 12 weeks from the date of the offer notice that you wish to proceed.
4.What is the Price Payable for the Property?
The following is a general guide to the price payable:
- The valuer will tell us the open market value of your home.
- If you qualify for the PRTB you are entitled to a discount on the open market value.
- The price payable for your property is the open market value of your home less the discount.
- The minimum qualifying period for a discount is 2 years in local authority/armed forces accommodation (or 5 years if you were a public sector tenant for the first time on or after 18th January 2005). The initial 2 year period entitles you to a 44% discount if your home is a flat or 32% if your home is a house. For each additional year above the minimum qualifying period you are entitled to further 2% discount for a flat and a further 1% discount for a house.
- The discount can be no more than 70% of the open market value if it is a flat and 60% if it is a house. However, discount entitlement can never be more than a maximum determined by the Government, which varies according to the region in which your home is located. We will advise you of the maximum discount available in your area on request. Previous discounts under the PRTB/RTA/ RTB also affect the amount to which you are entitled.
- If you are not happy with the open market valuation you can ask us to instruct the District Valuer to undertake a final valuation, within 3 months from the date of your offer. The District Valuer’s valuation is final and will be the value used to calculate the purchase price even if it is higher than the first valuation. We will let you know the final valuation.
If your home is a flat (or a house that benefits from communal facilities) you will also pay service charges. This is for your contribution to day-to-day expenses (lighting, cleaning etc), and any contribution you may have to make to substantial major works and improvement costs (lift repairs, roofing repairs etc) that will add to the value of your home. Your offer notice will contain details of service charges, and for certain service charges there are limits for the first 5 years of your ownership.
5. What is the Delay Notice Procedure?
There are timescales that both Orbit and you have to keep to as part of the process of applying for the PRTB. If Orbit does not respond within the timescales set, a Delay Notice Procedure will be followed. More information is available in our Guidance Notes.
6. Unpaid Rent and other Sums Outstanding to Us
- If you owe any money to us which has been due for 4 weeks or more (e.g. rent arrears) we are not obliged to complete the sale to you. You must pay any such outstanding sums to us before you are able to purchase your home.
- You must continue to pay your rent and any other sums until you complete your purchase.
7. Initial Costs Connected with your Purchase
You will have to pay other costs to other people. In addition to the purchase price of the property, you will need to pay some or all of the following:
- Mortgage arrangement fee and valuation fee to your lender if you are taking out a mortgage.
- Legal fees to your solicitor, plus the cost of searches of the property (enquiries of the local authority, environmental search, drainage search, etc). Most solicitors will provide a full estimate of all these amounts free of charge.
- Land Registry registration fee. The fee depends on the value of your property.
- Stamp Duty Land Tax (“SDLT”). If the price payable for your property is over £120,000.00 and below £250,000.00 you may have to pay 1% of the price in tax. In some areas no SDLT is currently payable if the price of the property is £150,000 or below. You can check to see if your postcode falls within such an area at http://www.hmrc.gov.uk/so/pcode_search.htm.
- Surveyor’s fees to investigate the condition of your property. This fee will vary depending on the grade of survey that you have undertaken.
8. Ongoing Costs of Home Ownership
Once you have purchased your home, you will need to pay the running and maintenance costs of your home. These will include the following:
- Regular mortgage payment to your lender.
- Council Tax.
- Household utility bills (gas, electricity, water, etc).
- Service charges (see above).
- Maintenance/repair costs.
- Insurances (buildings insurance, life insurance, etc).
9. Ongoing Costs of Home Ownership
The consequences to you as a homeowner will be very serious if you do not meet your mortgage payments. You may be at risk of losing your home if your lender takes possession proceedings against you because you have not paid your mortgage.
10. Further Information
Further information is contained in the booklets Your Right to Buy Your Home and Thinking of Buying a Council Flat? The booklets are available from the Department for Communities and Local Government or at www.communities.gov.uk
Right to Buy under the Voluntary Sales Policy
(“VSP”) Information Note
This information is produced to satisfy the requirements of the Housing (Right to Buy) (Information to Secure Tenants) (England) Order 2005. It is for tenants who had a housing association tenancy with Orbit Housing Association prior to 15 January 1989.
It is a general guide. More detailed information outlining who does or does not have the RTB under the VSP, and the process for applying for it, is available from us.
Please note: If you were formerly a tenant of or moved into what was once an Orbit Spa Housing Association property, the circumstances set out below do not apply to you as the VSP excludes former Orbit Spa properties from sale.
1. Who has the right to buy under the Voluntary Sales Policy?
You may be able to exercise the RTB under the VSP if all of the following applies to you:
- You were a tenant of Orbit Housing Association before 15th January1989 and have remained a tenant. There are additions/exceptions if you were at that time a tenant of another public sector landlord – please ask.
- You have spent a minimum total period of 2 years in social housing or armed forces accommodation.
- You occupy your house as your only or principal home.
- Orbit owns the freehold, or has sufficient interest in the property to grant a lease.
There are some other cases where the RTB may apply covering the following types
of cases:
- If you are a joint tenant of someone who may be able to exercise the PRTB.
- If you were assigned the tenancy by a member of your family who immediately before the assignment would have been eligible; or
- If you became the tenant of your house under divorce legislation in place of a person who would have been eligible; or
- If you are a family member of a previous sole tenant who would have been eligible and inherited the tenancy.
- If you are the partner of a deceased tenant who acquired the PRTB by succession.
- Please note a family member can join in the PRTB if they can prove they have lived in your home for at least 12 months before you apply. This 12 month period does not apply to spouses or civil partners.
2. Who Does Not Have the Right to Buy under the Voluntary Sales Policy?
You may not exercise the RTB if one or more of the following applies to you:
- Orbit is not your landlord.
- You have not spent a minimum total period of 2 years in social housing or armed forces accommodation (or 5 years if you were a public sector tenant for the first time on or after 18th January 2005).
- You do not occupy the property as your only or main home.
- Your home is let to you in connection with your employment.
- Your home is designed for people who are physically disabled, for people with a mental health problem, or who have other special needs, and is one of a group of such properties.
- Your home is particularly suitable for elderly residents. Please ask for more details of whether this applies to your home.
- Where we have served you with a notice that we intend to demolish your home within a specific period.
- Where a court order is made which means you have to leave your home by a specific date, or if the terms of a suspended court order are breached.
- If you are bankrupt.
- If your tenancy has been temporarily demoted to an assured shorthold tenancy in the case of anti-social behaviour.
- If you were formerly a tenant of or moved into what was once an Orbit Spa Housing Association property.
3. How Do I Claim the Right to Buy Under the Voluntary Sales Policy?
- We will supply you with an application form on request.
- You must complete the form and return it to us.
- We will let you know in writing if you qualify for the RTB within 4 weeks of receipt of your application (8 weeks if the qualifying period includes time with another landlord).
- If you qualify for the RTB a valuer will contact you and arrange to visit your home to carry out an open market valuation.
- Within 8 weeks (if you live in a house) or 12 weeks (if you live in a flat) we will send you a written offer notice setting out the sale terms.
- If you wish to proceed on the terms set out in the offer notice, you must advise us no later than 12 weeks from the date of the offer notice that you wish to proceed.
4. What is the Price Payable for the Property?
The following is a general guide to the
price payable:
- The valuer will tell us the open market value of your home.
- If you qualify for the RTB you are entitled to a discount on the open market value.
- The price payable for your property is the open market value of your home less the discount.
- The minimum qualifying period for a discount is 2 years in local authority/ armed forces accommodation (or 5 years if you were a public sector tenant for the first time on or after 18th January 2005). The initial 2 year period entitles you to a 44% discount if your home is a flat or 32% if your home is a house. For each additional year above the minimum qualifying period you are entitled to a further 2% discount for a flat and a further 1% discount for a house.
- The discount can be no more than 70% of the open market value if it is a flat and 60% if it is a house. However, discount entitlement can never be more than a maximum determined by the Government, which varies according to the region in which your home is located. We will advise you of the maximum discount available in your area on request. Previous discounts under the PRTB/RTA/ RTB also affect the amount to which you are entitled.
- If you are not happy with the open market valuation you can ask us to instruct the District Valuer to undertake a final valuation, within 3 months from the date of your offer. The District Valuer’s valuation is final and will be the value used to calculate the purchase price even if it is higher than the first valuation. We will let you know the final valuation.
- If your home is a flat (or a house that benefits from communal facilities) you will also pay service charges. This is for your contribution to day-to-day expenses (lighting, cleaning etc), and any contribution you may have to make to substantial major works and improvement costs (lift repairs, roofing repairs etc) that will add to the value of your home. Your offer notice will contain details of service charges, and for certain service charges there are limits for the first 5 years of your ownership.
5. What is the Delay Notice Procedure?
There are timescales that both Orbit and you have to keep to as part of the process of applying for the RTB. If Orbit does not respond within the timescales set, a Delay Notice Procedure will be followed. More information is available in our Guidance Notes.
6. Unpaid Rent and Other Sums Outstanding to Us
- If you owe any money to us which has been due for 4 weeks or more (e.g. rent arrears) we are not obliged to complete the sale to you. You must pay any such outstanding sums to us before you are able to purchase your home.
- You must continue to pay your rent and any other sums until you complete your purchase.
7. Initial Costs Connected with Your Purchase
You will have to pay other costs to other people. In addition to the purchase price of the property, you will need to pay some or all of the following:
- Mortgage arrangement fee and valuation fee to your lender if you are taking out a mortgage.
- Legal fees to your solicitor, plus the cost of searches of the property (enquiries of the local authority, environmental search, drainage search, etc). Most solicitors will provide a full estimate of all these amounts free of charge.
- Land Registry registration fee. The fee depends on the value of your property.
- Stamp Duty Land Tax (“SDLT”). If the price payable for your property is over £120,000.00 and below £250,000.00 you may have to pay 1% of the price in tax. In some areas no SDLT is currently payable if the price of the property is £150,000 or below. You can check to see if your postcode falls within such an area at http://www.hmrc.gov.uk/so/pcode_search.htm.
- Surveyor’s fees to investigate the condition of your property. This fee will vary depending on the grade of survey that you have undertaken.
8. Ongoing Costs of Home Ownership
Once you have purchased your home, you will need to pay the running and maintenance costs of your home. These will include the following:
- Regular mortgage payment to your lender.
- Council Tax.
- Household utility bills (gas, electricity, water, etc).
- Service charges (see above).
- Maintenance/repair costs.
- Insurances (buildings insurance, life insurance, etc).
9. Consequences of Failing to Meet Your Mortgage Payments
The consequences to you as a homeowner will be very serious if you do not meet your mortgage payments. You may be at risk of losing your home if your lender takes possession proceedings against you because you have not paid your mortgage
10. Further Information
Further information is contained in the booklets Your Right to Buy your Home and Thinking of Buying a Council Flat? The booklets are available from the Department for Communities and Local Government or at www.communities.gov.uk
Right to Acquire
(“RTA”) Information Note
This information is produced to satisfy the requirements of the Housing (Right to Buy) (Information to Secure Tenants) (England) Order 2005.
It is a general guide. More detailed information which outlines who does or does not have the RTA, and the process for applying for it, is available from us.
1. Who has the Right to Acquire?
You may be able to exercise the RTA if all of the following applies to you:
- You have a tenancy with a member of Orbit Group (Orbit).
- You have spent a minimum total period of two years as a secure tenant of a local authority, in armed forces accommodation, or as an assured tenant of a Registered Social Landlord (“RSL”) such as Orbit (this increases to 5 years where your tenancy commenced on or after 18th January 2005).
- You occupy the property as your only or principal home.
- Your home is a self-contained property.
- Your home was built or purchased by a RSL, and funded on or after 1st April 1997 through the social housing grant provided by the Housing Corporation or a local authority, or was
- Transferred from a local council to a RSL on or after 1st April 1997 or certain other public funding (we will confirm in respect of your home on request).
- Please note a family member can join in the RTA if they can prove they have resided in your home for at least 12 months before you apply. The need for a 12-month period does not apply to spouses or civil partners.
2. Who is Not Entitled to the Right to Acquire?
You may not exercise the RTA if one or more of the following applies to you:
- A member of Orbit Group is not your landlord.
- You have not spent a minimum total period of two years as a secure tenant of a local authority, in armed forces accommodation, or as an assured tenant of a registered social landlord (or 5 years if you were a public sector tenant for the first time on or after 18th January 2005).
- Your tenancy is a lease for more than 21 years.
- Your property is in a rural area designated by Government order.
- You do not occupy the property as your main or principal home.
- Your home is let to you in connection with your employment.
- Your home is designed and has features making it suitable for people who have a physical disability, or for people with a mental health problem, or who have other special needs, and is one of a group of such properties.
- Your home is particularly suitable for persons of pensionable age, and is one of a group of such properties.
- Your home is valued at or below our loan on your home.
- We have served you with a notice that we intend to demolish your home within 2 years.
- A court order has been made which means you must vacate your home by a specific date, or the terms of a suspended court order are breached.
- You are bankrupt.
- Your tenancy is temporarily demoted to an assured shorthold tenancy as a result of anti-social behaviour (you may however be able to exercise the RTA at the end of the demotion period).
3. How do I Claim the Right to Acquire?
- We will supply you with a form on request. This is called a RTA1 form.
- You must complete form RTA1 and return it to us.
- We will let you know in writing if you qualify for the RTA within 4 weeks of receipt of your application if we were your landlord during the qualifying period (or 8 weeks if you were the tenant of another landlord during the qualifying period).
- If you qualify for the RTA a valuer will contact you and arrange to visit your home to carry out an open market valuation.
- Within 8 weeks (if you live in a house) or 12 weeks (if you live in a flat) we will send you a written offer notice setting out the sale terms.
- If you wish to proceed on the terms set out in the offer notice, you must advise us no later than 12 weeks from the date of the offer notice that you wish to proceed.
4. What is the Price Payable for the Property?
- The valuer will tell us the open market value of your home.
- If you qualify for the RTA you are entitled to a discount on the open market value.
- The price payable for your property is the open market value of your home less the discount.
- The amount of the discount is fixed and is published by the Government (the discounts currently range from £9000 to £16000) depending on where in the country your home is located. We will advise you of the discount applicable to your area on request. However, in all cases the amount of the fixed discount can never exceed 50% of the open market value of your home We will tell you the fixed discount applicable to your home.
- If you are not happy with the open market valuation you can ask us to instruct the District Valuer to undertake a final valuation. You must tell us no later than 3 months from the date of your offer if you want a revaluation. The District Valuer’s valuation is final and will be the value used to calculate the purchase price even if it is higher than the first valuation. We will let you know the final valuation. Previous discounts under the RTA/RTB/PRTB also affect the amount to which you are entitled.
- If your home is a flat (or a house that benefits from communal facilities) you will also pay service charges. This is for your contribution to day-to-day expenses (lighting, cleaning etc), and any contribution you may have to make to substantial major works and improvement costs (lift repairs, roofing repairs etc) that will add to the value of your home. Your offer notice will contain details of service charges, and for certain service charges there are limits for the first 5 years of your ownership.
5. What is the Delay Notice Procedure?
If you decide to apply for the RTA there are certain timescales that you will need to keep to, otherwise the application may be withdrawn or terminated. We can give you more details on these on request.
6. Unpaid Rent and Other Sums Outstanding to Us
- If you owe any money to us which has been due for 4 weeks or more (e.g. rent arrears) we are not obliged to complete the sale to you. You must pay any such outstanding sums to us before you are able to purchase your home.
- You must therefore continue to pay your rent and any other sums until you complete your purchase.
7. Initial Costs Connected with Your Purchase
You will have to pay other costs to other people. In addition to the purchase price of the property, you will need to pay some or all of the following:
- Mortgage arrangement fee and valuation fee to your lender if you are taking out a mortgage.
- Legal fees to your solicitor, plus the cost of searches of the property (enquiries of the local authority, environmental search, drainage search, etc). Most solicitors will provide a full estimate of all these amounts free of charge.
- Land Registry registration fee. The fee depends on the value of your property.
- Stamp Duty Land Tax (“SDLT”). If the price payable for your property is over £120,000.00 and below £250,000.00 you may have to pay 1% of the price in tax. In some areas no SDLT is currently payable if the price of the property is £150,000 or below. You can check to see if your postcode falls within such an area at http://www.hmrc.gov.uk/so/pcode_search.htm.
- Surveyor’s fees to investigate the condition of your property. This fee will vary depending on the grade of survey that you have undertaken.
8. Ongoing Costs of Home Ownership
Once you have purchased your home, you will need to pay the running and maintenance costs of your home. These will include:
- Regular mortgage payment to your lender.
- Council Tax.
- Household utility bills (gas, electricity, water, etc).
- Service charges (see above).
- Maintenance/repair costs.
- Insurances (buildings and contents insurance, life insurance, etc).
9. Consequences of Failing to Meet Your Mortgage Payments
The consequences to you as a homeowner will be very serious if you do not meet your mortgage payments. You may be at risk of losing your home if your lender takes possession proceedings against you because you have not paid your mortgage.
10. Further information
Further information is contained in the booklets Your Right to Buy your Home and Thinking of Buying a Council Flat? The booklets are available from the Department for Communities and Local Government or at www.communities.gov.uk
