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Repayment of discount

If you have bought your home under the Right to Buy scheme, you can usually sell it whenever you like. But if you wish to sell within the 'discount repayment period' specified below you will usually have to repay some or all of the discount.

From 18th January 2005, if in advance of your purchase, or within the 'discount repayment period' you enter into an agreement to transfer your property to a third party in the future, then this will trigger repayment of your discount. Discount repayment is triggered from the date that you enter into the agreement. So, for example, if you enter into such an agreement before you have bought the property or during the first year after buying, you will have to repay the full amount of the discount you received.

  • If you applied for the Right to buy before 18th January 2005 and sell within 3 years of buying your home:

If you sell within the first year after your purchase, the whole of the discount will have to be repaid. Two thirds must be repaid if you sell in the second year, and one third in the third year. After 3 years, you can sell without repaying any discount. The discount is the sum you actually received when you purchased your home.

  • If you apply for the Right to Buy from 18th January 2005 onwards and sell within 5 years of buying your home:

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. In addition, the amount of discount to be repaid if you sell within 5 years of purchase will be a percentage of the resale value of the property, disregarding the value of any improvements.

Right of first refusal

If you purchase your home under the Right to Buy scheme on or after 18th January 2005, and you wish to resell or dispose of it within 10 years, you will be required to offer it to either you former landlord or to another social landlord in your area at full market value. The market value must be agreed between the parties or, if they are unable to agree, will be determined by the District Valuer (this Office will pay the costs of employing a District Valuer). If your offer has not been accepted within 8 weeks, you will be free to sell the property on the open market.

These pages are an introductory guide; anyone intending to buy a home should get full independent legal advice.

Page last updated on 24 May 2012