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Selling ex council house
Comments
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why haven't you read the link at post #3 and the very clear example in it?Exchanging with a slightly delayed completion is a great idea!
Im a bit confused about the discount repayment is it 20% of the sale price or of the discount received.
I bought the house for £74,000 with £26,000 discount. Being valued at £100,000.
I have agreed a sale at 125,000
Thanks
you got a 26% discount therefore in year 5 selling for 125,000 your discount is now "worth" 32,500 and you would repay 20% of that = 6,500
assuming of course you are indeed still in the 5th year as there does seem some doubt about that aspect0 -
Apologies for writing a completely wrong response- that's how it should have read:
To put it very plainly and without any possibility of misunderstanding, the amount you will have to pay is 20% of the discount calculated from the current value of your house now (not the estimate, the actual offer accepted by you), so it it's £125K and your discount was 26% it will 20% of £32.5 K.
(much less money than £25K! apologies to pocket8s for confusing you!)0 -
To put it very plainly and without any possibility of misunderstanding, the amount you will have to pay is 20% of what you get for the house now (not the estimate, the actual offer accepted by you), so it it's £125K this means you'll have to repay £25K. Worth waiting for IMHO.
That's specifically NOT what is said in post 3.0 -
read the instructions before attempting assemblyTo put it very plainly .
.Gov.UK INSTRUCTIONS link per post 3
Example
You bought your home worth £100,000 and got a 40% discount (£40,000). You then sold your home after 18 months for £120,000.
40% of £120,000 is £48,000. As you’re in the second year, you would repay 80% of £48,000 (£38,400).0 -
Complete in December, but tell your buyers the implication.0
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That's specifically NOT what is said in post 3.
Not really sure why this is so confusing for everyone. Sorry to be the bearer of bad news, but the discount to be repaid is definitely of the SALE price (or the purchase price by the NEW buyer) not the purchase price of the Right to Buy property.
If you read Post 3 carefully this is exactly what it says- read the last sentence.
"The amount you pay back depends on the value of your home when you sell it."
If you still have any doubts phone the DCLG RTB helpline.0 -
Not really sure why this is so confusing for everyone. Sorry to be the bearer of bad news, but the discount to be repaid is definitely of the SALE price (or the purchase price by the NEW buyer) not the purchase price of the Right to Buy property.
If you read Post 3 carefully this is exactly what it says- read the last sentence.
"The amount you pay back depends on the value of your home when you sell it."
I think what's added to the confusion is your previous post hereTo put it very plainly and without any possibility of misunderstanding, the amount you will have to pay is 20% of what you get for the house now (not the estimate, the actual offer accepted by you), so it it's £125K this means you'll have to repay £25K. Worth waiting for IMHO.
where you seem to be saying, incorrectly, that the 20% to be repayed is 20% off the entire selling price of the house, when in fact it is 20% of the discount percentage...
So, as booksurr has said, if you received a 40% discount on the purchase and sell for £125k, in the fifth you you will need to repay 20% of 40% of £125k (= £10,000)0 -
Yes, I realised I gave the completely wrong example. I was trying to make a point that all the percentages were calculated from the new price, not the old one, but of course this is not an excuse for confusing the already confused OH!:(0
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