Right to Buy
There are two schemes run by Fareham Borough Council to which allow you to buy your home or a share in your home, these are Right to Buy and Social Homebuy.
If you are considering purchasing your council property through the Right to Buy scheme, you will need to have been a secure council tenant of this or another authority or one of the registered landlords shown in the Right to Buy Booklet for at least 2 years. The qualifying period has been increased to 5 years for anyone who became a secure tenant after 18th January 2005, this follows changes to the Right to Buy Legislation under the Housing Act 2004.
You may not have the Right to Buy if you live in Sheltered Accommodation. To find out if you can buy you will need to complete an application form and a decision will be made by the Tenancy Services Manager after your application has been assessed.
The Right to Buy scheme entitles tenants to a discount on the market value of their property. The amount of discount will depend on how long you have been a secure tenant and whether you are buying a House/Bungalow or a Flat/Maisonette.
The maximum amount of discount which the council is allowed to give is at present limited to £38,000 in this area.
The following information sets out the various
stages of the Right to Buy scheme. If you require further
information or would like a copy of the Council's information booklet (300 Kb) 
, a copy of the booklet issued by the Office of the Deputy Prime Minister or would like to discuss a current application, then please contact Tenant Services on 01329 236100 or email housing@fareham.gov.uk. An online Right to Buy application form can be downloaded at www.direct.gov.uk/rtb1 (this is an external hyperlink).
Stage 1 - Complete and return
an RTB application form.
Stage 2 - We check and
acknowledge your application form.
Stage 3 - Offer Notice (Section
125 Notice).
Stage 4 - How the discount is
calculated.
Stage 5 - Appealing to the
District Valuer.
Stage 6 - Other questions
relating to the Section 125 Notice.
Stage 7 - Obtaining a Mortgage.
Stage 8 - Legal Advice.
Stage 9 - Telling us what you
want to do.
Stage 10 - Frequently asked
questions.
Stage 1 - Complete and return an RTB application form
We use this form to check whether you have the Right to Buy and to calculate how much discount you are entitled to. Application forms are available online at www.direct.gov.uk/rtb1 (this is an external hyperlink) or by post from: Tenancy Services Division, Department of Customer Services, Fareham Borough Council, Civic Offices, Civic Way, Fareham, PO16 7AZ ; by telephone 01329 236100 or by e mail housing@fareham.gov.uk.
Stage 2 - We check and acknowledge your application form
Once your form (RTB1) has been checked we will send you a notice (form RTB2) which will tell you if you have been given the right to buy or if this has been denied, the reason why. We have by law to send this information to you within 4 weeks of our receiving your application form. If you are denied the right to buy you should consult your Right to Buy information booklet or contact the Tenancy Services Team at the council on 01329 236100 for further advice.
Stage 3 - Landlords offer notice (Section 125 notice)
If you have the right to buy, we will arrange for a valuation to be carried out by the Council's Valuers. Following this, the following details will be sent to you in the form of an Offer Notice (Section 125 notice). The details include:
- the valuation of your property
- the amount of discount you are entitled to. This is calculated according to the number of years you have been a secure tenant, either with this council or with another registered landlord, however the government have set a discount limit of £38,000 for properties in this area.
- an estimate of the amount of service charges you will be liable for if you purchase a flat or maisonette
- it will inform you of any structural defects that may be relevant
- a draft of the legal documentation will also be included with the Offer Notice
Stage 4 - How the discount is calculated
House or Bungalow
If you have spent 2 years as a public sector tenant you will be entitled to a discount of 32% for the first 2 years and 1% for every other completed year up to a maximum of 60% (30 years as a secure tenant), the maximum limit of £38,000 will however apply.
If you have spent 5 years as a public sector tenant you will entitled to a discount of 35% for the first 2 years and 1% for every other completed year up to a maximum of 60% (30 years as a secure tenant), the maximum limit of £38,000 will however apply.
Flat or Maisonette
If you have spent 2 years as a public sector tenant you will be entitled to a discount of 44% for the first two years and 2% for every other completed year up to a maximum of 70% (15 years as a secure tenant) the maximum of £38,000 will however apply.
If you must have spent 5 years as a public sector tenant you will be entitled to a discount of 50% for the first two years and 2% for every other completed year up to a maximum of 70% (15 years as a secure tenant) the maximum of £38,000 will however apply.
Stage 5 - Appealing to the District Valuer
If you are not happy with the full market price shown in your offer notice, you have the right to appeal to the District Valuer, who will carry out an independent valuation of the property. If you do decide to appeal you will have to accept this valuation even if it is higher than that of the Council's. To have the property re-valued you will need to complete form TRB5, which is available from the Council Offices. This must be done within 12 weeks of receiving your Offer Notice.
Stage 6 - Other questions relating to the Section 125 notice
If you would like to discuss other points relating to the Offer Notice please contact the Council Offices. If you are buying a flat, you may find the site www.lease-advice.org (this is an external hyperlink) of interest. The ODPM also produces three booklets, 'Thinking of Buying a Council Flat', 'Applying to a Leasehold Valuation Tribunal' and 'Long Leaseholders', which you may find useful.
Stage 7 - Obtaining a mortgage
If you decide to go ahead with the purchase of your property you will need to obtain a mortgage from a bank or Building Society, unless you are paying cash. They may charge for arranging a mortgage and also for carrying out the mortgage valuation survey. The Council are unable to assist as they do not provide mortgages.
Stage 8 - Legal Advice
Once you have secured a mortgage who will need to get legal advice. You should take your Offer Notice (Section 125 notice) and the draft transfer to your solicitor - please be aware that you will be charged for this service. Your solicitor will act on your behalf in liaising with the Council's Legal Department over the sale of your property.
Stage 9 - Telling us what you want to do
You now need to decide what you would like to do:
- Do you want to buy the property at the Right to Buy price less discount?
- If you decide not to buy, you will need to cancel your application in writing and you will be able to continue renting your property.
You will need to let us know your decision with 12 weeks of receiving your offer notice. If we do not hear from you within 12 weeks we will send you a reminder (form TRB17) which should be completed and returned to the Council. Even if you inform us that you wish to go ahead with the purchase you may still change your mind at a later date and cancel the application by informing the Council in writing. If you notify us that you are going to purchase you will have 12 months in which to take up the offer and the valuation will remain the same for this period. At the end of the 12 months if we have not heard from you, a reminder (form 12A) will be sent giving you 56 days in which to complete the purchase. If we still do not hear from you a final notice (form 12B) will be sent informing you that your application will be cancelled in a further 56 days.
Stage 10 - Frequently asked questions:
Can you tell me how much my property is worth?
No, in order to give a fair and accurate valuation, you will need to have the property valued by the Council and to have this done you must first complete an application form.
How long will it take for the Council to value the property?
The valuation is usually carried out within 6 to 8 weeks following receipt of the application form, however, because of the various legal procedures which have to take place it is usually another 4 to 6 weeks before a written valuation can be sent to you.
Do I have to pay for the valuation?
No, there is no charge for the valuation or any of the other processes which the Council have to carry out relating to the Right to Buy. However you will have to pay Solicitors Fees and Valuation Fees when you arrange a mortgage if you decide to go ahead with purchasing the property.
Can I include tenancies with other council's etc?
Yes, you take into account any secure tenancies you have with other Local Authorities, Housing Association and other Public Sector Landlords.
Can my son or daughter join in the purchase of my property?
Up to three members of the family have the right to buy with the tenant/s of the property provided they have lived in the property for at least one year and do not have a tenancy elsewhere or are the owners of a property.
Why am I not entitled to the full discount, if I have been a tenant for 30 years?
The Government has set a limit on the amount of discount the Council is allowed to give and for Council's in this area the limit is £38,000.
Can I sell my property once I have purchased it?
Yes, if you applied to buy before 18th January 2005 and wish to sell within 3 years you will have to pay back to the Council a percentage of the discount you were given:
If you sell within the first year the whole discount will have to be repaid
If you sell within the second year two thirds of the discount will have to be repaid
If you sell within the third year one third of the discount will have to be repaid
After three years from the date of purchase you can sell the property on the open market without having to pay back any discount.
If you applied to buy from the 18th January 2005 onwards and wish to sell within 5 years you will have to pay back to the Council a percentage of the discount you were given:
If you sell within the first year the whole discount will have to be repaid
If you sell within the second year four fifths of the discount will have to be repaid
If you sell within the third year three fifths of the discount will have to be repaid
If you sell within the fourth year two fifths of the discount will have to be repaid
If you sell within the fifth year one fifth of the discount will have to be repaid
After 5 years from the date of purchase you can sell the property on the open market without having to pay back any discount.
In addition, the amount of discount to be repaid if you sell within 5 years will be a percentage of the resale value of your property.
For more detailed information on the Right to Buy or to obtain an information booklet please contact Tenant Services on 01329 236100, or email housing@fareham.gov.uk, or if you wish, visit the Council Offices.
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