Help - Right to buy

LilPretty

I had my property valued in dec and and offer made by the council to me in Jan 2016.

Unfortunately, as i was unable to secure a mortgage on time and other health issues - the offer lapsed by 2 weeks.

I asked to have an extension and etc - but was declined, so i started a new process etc.

Jan 2016 - property was valued at £320k
Apr 2016 - property was valued at £390k

This is the same property and no changes..

is this possible? - that is a 25% increase in 3/6 months.

Property is end terrace - located in stratford london.

can someone please help me.

i do have a mortgage offer now - based on the old valuation etc - i am in tears..

Norman_Castle

Op, If you start a new thread asking the same question without mentioning the right to buy you may get helpful replies.

Cheeky_Monkey

LilPretty wrote: »

I had my property valued in dec and and offer made by the council to me in Jan 2016.

Unfortunately, as i was unable to secure a mortgage on time and other health issues - the offer lapsed by 2 weeks.

I asked to have an extension and etc - but was declined, so i started a new process etc.

Jan 2016 - property was valued at £320k
Apr 2016 - property was valued at £390k

This is the same property and no changes..

is this possible? - that is a 25% increase in 3/6 months.

Property is end terrace - located in stratford london.

can someone please help me.

i do have a mortgage offer now - based on the old valuation etc - i am in tears..

Of course it's possible - it's London FGS!

That's a real shame you can no longer afford the RTB, my heart really does bleed for you

Maybe you can fall back on your original idea from only a month ago and buy, presumably on the open market, somewhere in Loughton, Essex?

Cheeky_Monkey

Norman_Castle wrote: »

Op, If you start a new thread asking the same question without mentioning the right to buy you may get helpful replies.

I doubt that. The value has gone up by £70k and the OP is highly unlikely to be able to increase their potential mortgage by that much.

tomtontom

Discount of £100K+ :eek:

Don't worry OP, if you can get a £200K mortgage you've plenty of other options open to you.

Cheeky_Monkey

Yes the OP does have other options to buy but then they wouldn't be given £100k+ free so I guess they are not as attractive

Senior_Paper_Monitor

A RTB offer is valid for 8 months minimum (3 months on initial offer, plus 2 months on 1st warning and further 2 months on second warning - and most councils aren't too efficient at issuing the warnings, so usually 9 months plus).

OP doesn't help her cause (or encourage sympathy) with incorrect facts.

Our standard email on such issues explains further ....

If you are unable to progress your purchase as fast as the Council/Housing Association would like you need to be aware of the 'permitted timescales' ...

Delays caused by the Tenant

The time available to complete a Right to Buy purchase is limited.

Three months after the date of the Offer Notice, the Council can serve you with a legal notice called a “Landlord’s First Notice to Complete”. This notice, often referred to as a “Prior Notice”, advises that you have 56 days (i.e. eight weeks) in which to complete your purchase.

At the end of the period of 56 days, if you have not completed your purchase or withdrawn your Right to Buy claim, the Council can serve you with a second legal notice called a “Landlord’s Second Notice to Complete”. This notice is often called a “Final Notice”, and it advises you that you have a further period of 56 days (eight weeks) in which to complete your purchase.

It is important to note that the date contained in the Final Notice is a final completion date. If you have not completed your purchase by that date, your Right to Buy claim will be considered to have been withdrawn.

... should your claim be withdrawn, we are not aware of any regulation that prevents you restarting the application process immediately (and experience indicates that the 'more sensible' Councils will avoid the resulting work and expense by allowing further extension of current applications if progress is demonstrated).


A 70K increase in 10 months (allowing for the quoted "the offer lapsed by 2 weeks" and the statutory response time to a new application of:

"they must respond (RTB 2) confirming entitlement, or otherwise, within 4 weeks (or 8 weeks if there are more than one tenancy making up your entitlement this extends to 8 weeks)"

... is actually , 22% over the likely period and 26% per annum (again the OP misrepresents statistics, which does her case no favours) which is not a long way off the daft growth rates in London and allowing for the facts that Councils have been soundly criticised in the past for undervaluing properties I suspect their new valuation is probably reasonable.

Senior_Paper_Monitor

A little (very little) bit of amateur sleuthing shows that the OP actually received her RTB offer just before her post of 18-09-2015, 12:43 PM:

https://forums.moneysavingexpert.com/discussion/comment/69196754#Comment_69196754

That's 4 months earlier than indicated in post #1 in this thread !!!



Words fail me !

LilPretty

thanks for all the responses.

I have applied twice and this is my 3rd application.

Issues has always been getting a lender who combines a rtb offer and also my cci issue.

Here are better facts - guess i was a bit upset earlier.

My 2nd and 3rd offers are vast in price - hence why i queried it.

I am not sure - where the fact came from that a right to buy is valid for 8 months. but here is my facts (sitting with papers now)

2nd application was made in Sept 2015.

2nd Offer received in dec / 1st week of Jan 2016 at 320k, with a 100k discount.

between Jan and Apr - HSBC had my application - going back and forth and eventually got declined in apr (there were loads of delays due to the advisor been sick / honeymoon / documents etc) and I could not put in another mortgage application somewhere else concurrently.

Apr - the council wrote to say the offer period had been exceeded - hence the offer was no longer valid.

I got an offer from another lender in Apr.

I have the letters sitting here now - my local authority has a 12 week period to complete and there are no extensions - i def did not get any legal documents to extend or cancel

In apr i wrote to the council asking for an extension to the 2nd offer and was advised that it will not be possible.

hence my 3rd application process started off in april. and got the offer today.

LilPretty

2nd offer letter dated - 18th Dec 2015

3rd offer letter dated - 7th June 2016

That is 6 months - surely if the right to buy offer is valid for 8 months the council will not make 2 offers in the space of 6 months...

All i wanted was to understand if
a) the value could go up as much as £70k in 6 months
b) any appeal process within the right to buy process to challenge it (if possible)

Senior_Paper_Monitor

LilPretty wrote: »

I found myself in a similar situation - and i stepped back one yr - rebuilt my credit (still doin that) and 'cleaned up' my spending / saving - then approached my high street bank

.......................................................

Apologies - your repayment may not be same as your current rent - mine certainly isnt - I saw a 100% rise - and that is from a good offer from the high street bank. - Council rent was #480, repayment mortgage is #880 on #210k loan.

My local authority states - that you can add a spouse / fam etc to your tenancy - wait 1yr and the added party would be included on ur RTB offer..

It may be worth you doing that - gives you 1yr clean up a lot as much debt as you can etc.

I did step back one yr as earlier mentioned - when I re-applied for the rtb - house price went up by #10k.. i actually thot it will be alot more as I live in a highly priced area..

Hope it helps - all the best

Above is from your posts 29/01/2016

My office advises (from a mortgage aspect - but as part of that we research and know the legislation inside out) on dozens of RTBs a year. I do the research and have done since we entered the market c 4 years ago. So in answer to your question "I am not sure - where the fact came from that a right to buy is valid for 8 months" - from the Housing Act (which I read) and more published guidelines to Councils than there are corrupt politicians (and I not suggesting that your problems are the result of corrupt politicians) !