Buy back scheme

Runnit

Hi,
Knew it was going too positively 😨
Just this week I viewed a house, fell in love with it, made an offer, which was accepted on the condition i got an offer on my.house within two weeks....

My.house not even on the market I have worked my butt off to get it on the market within two days and have already had a positive viewing....

All good, not pinning my hopes but everything going really well....

Until I just thought I'd check the council 'buyback' council house scheme online 😨😨

I bought my council home 7 years ago, have lived here for 15 years, looked after it really well but need a change. I've already committed to an estate agent with its £2k fees and now I see I have to offer my home back to the council because it's not been 10 years since I bought it.

This could really mess things up because it could potentially take 8 weeks for the council to decide if hey want it, I can't afford that time. I will lose my dream home, lose my agent fees by potentially pulling out.

Has any one had any experience of this? I can't believe I didn't know 😢 help!

eddddy

Runnit wrote: »

I've already committed to an estate agent with its £2k fees and now I see I have to offer my home back to the council because it's not been 10 years since I bought it.

What kind of contract did you enter into with the estate agent?

Is it "sole selling rights"?

Did you sign the contract in your home within the last 14 days? If so, you should be able to cancel it - but you may have to cover the agents costs.

Runnit

Hi, yes it was sole selling with a 14 day cooling off period, thanks for the reminder, fees will be a few hundred instead of thousands.

If I 'forgot' to tell the council will I be fined after the event? I just want my house. Or is there any way I can get them to come up with a decision within two weeks? I'll have to phone them tomorrow I guess. Hopefully cos they spent all their money they've got none to buy back my house!

G_M

I assume that you benefitted from buying your property from the council 7 years ago at a discounted price?

Whatever the pros and cons of such discounted sales, the fact remains that there are conditions attached. Sales of council properties under RTB are hugely beneficial to council tenants, but one of the downsides is that the councils lose housing stock - already in massive short supply.

Hence the condition that many councils impose that they be given first option to buy back the property if it is later sold on.

Has any one had any experience of this? I can't believe I didn't know

It will all have been in the paperwork when you bought the property.

If I 'forgot' to tell the council will I be fined after the event?

Hopefully, and probobly, yes

is there any way I can get them to come up with a decision within two weeks?

As you say, contacting them asap to discuss the process is the best way to move forward. Also check their website for details of the process - it may also give timescales. eg here is Norwich council's website:

We aim to acknowledge your letter within five working days of receipt. Your request will then be considered in line with the council’s policy. If we need additional information we will contact you. We have to provide you with either an ‘acceptance notice’ or a ‘rejection notice’ within 8 weeks of receipt of your enquiry. If we fail to provide this within 8 weeks you may dispose of the property in accordance with the regulations.

https://www.ealing.gov.uk/info/201091/leaseholders_-_council_housing/363/repurchase_of_properties

da_rule

You won’t be fined for not telling the Council. However, there will be a restriction currently on your title saying that the property can not be sold without the Council’s permission.

Therefore the solicitor for the buyer will ask for this certificate from your solicitor, who obviously won’t be able to produce it, and the wheels will fall off the sale at that point.

Even if the other side didn’t notice, the Land Registry would not register the transfer without the certificate.

Your best bet is to send the relevant notice to the Council ASAP. What needs to be in the notice is governed by The Housing (Right of First Refusal) (England) Regulations 2005. If the Council decide that they want to buy then they will be a cash buyer and will buy at open market value (so you won’t lose out), if they don’t want to buy then they will issue a certificate which is valid for 12 months.

Runnit

Thank you all, I definitely DID benefit from buying the house at a discount, you are correct. I fought with my conscience long and hard when I bought my house but I loved it so much I wanted it to be mine.i still love it but my dream is to buy a house and do it up, it's all I've ever wanted to do, it's a dream come true.

I have tried to contact the ONE person at the council who can advise me, but customer services said they do buyback.

He main thing is not looking like a complete prat to the estate agents I've been chasing all week. I did tell them today that I need to offer buyback to th council. They have not had much experience of this. I just couldn't live a lie lol!
Here's hoping the council lady gets in touch on Monday, I will check my paperwork and see if there is a formal way to do this.

I may lose my dream house but at least it has shown me I have to guts to actually move out of my beloved home.

heston2014

Hi

We've just been through a Right of First Refusal process with our council - they didn't want to buy ours back and we got a response back within 4 weeks. You do need to offer it to the Council first before going to Open Market and you can only sell to the Open Market no lower than what you would offer the Council. We now have 12 months to dispose our property and if we decide not to go ahead but later want to sell up, we have to go through the same process again with the Council until the clause expires which is in 5 years time.
I've also been told that subsequent owner(s) would carry over the clause until it expires. Hoping it won't put off potential buyers!

Goodluck!

da_rule

heston2014 wrote: »

you can only sell to the Open Market no lower than what you would offer the Council.

This bit isn't true I'm afraid.

The Council have to buy it back at the open market value. Once the Council say they don't want it you can then, in the year the certificate is valid for, sell it for what ever you want, or give it away for free.

heston2014

Yes you can sell to Open market at whatever price, but it cannot be sold lower than the price initially offered to the Council. For example, if Market value is £400k but you offer to the council at say £380k, the final sale cannot be lower than this figure.

da_rule

heston2014 wrote: »

Yes you can sell to Open market at whatever price, but it cannot be sold lower than the price initially offered to the Council. For example, if Market value is £400k but you offer to the council at say £380k, the final sale cannot be lower than this figure.

Yes, it can. You do not offer it to the Council at anset price. The Council, if it wants to exercise its right has to purchase at the open market value. If you can’t agree what that should be the District Valuer will make the determination.

Once the Council have said no, you a free to make a relevant disposal, as defined within the Housing Act 1985, for a period of one year from the date of the refusal. A relevant disposal can include gifting the property (i.e. giving the property away) or a sale at any price.

Who ever has told you that you cannot sell it for lower has obviously never actually read the Act or the relevant regulations that accompany the buy back provisions.

Runnit

Well I managed to get in touch with the lady at the council on Monday. The customer support people were great in helping me track her down.

I was expecting the lady to be rude and dismissive of my plight (��) but she was lovely. She said people do what I've done all the time- ie don't realise they have to offer council first refusal. She went through the three reasons my council will buy back a property and said my house falls into one of those groups ie a 'spot purchase' if they want to buy any houses at the moment but it did sound unlikely to me that they will want to.

I am to ring back next Thursday to see if my case has been discussed with the buyback team- she should be able to tell me if it's a firm 'no' (in which case I can proceed with the private sale, or a 'maybe' ( in which case I'm a bit !!!!!!ed and will have to wait for a council survey and valuation, probably meaning I'll lose the house I set my heart on).
I have discussed this with the EA's involved in my sale and my purchase, they are willing to buy me some time until get my Buyback answer next week.

I had a decent offer on my house this week, which is great ��

So....roll on the 25th April....������