Selling my house to the council

Dougie_Bilbie

We have had an offer accepted on a house we really like and we are selling ours to fund the sale. As we got it through the right to buy scheme and are in the first 5 years we have to sell it back to the council first. We have sent the forms off and we are waiting on a response but while we waited we put our house on the market to see if we could get any interest. This is where our dilemma starts. We're offered a really good amount for more than the value of the property. My question is can I say to the council (who have first refusal) that I have had a better offer than what they want to but it for and can I turn thier offer down if it is lower? 

juliedee4663

I'm not an expert in this, but surely if the terms of you buying the house in the first place state that if you sell within 5 years you have to sell it back to the council then doesn't sound like you have any choice in the matter. You need to check any terms and conditions you were given at the time regarding what sort of offer price the council need to give you, there might not be any negotiation.

theartfullodger

You can say anything you like, but I think council have their rights.  Presumably, as you signed up for when you bought?? Presumably you got a large discount when you purchased?? That still leaves a big hole in Council finances, expect they want to try to fill that hole.

Good luck with purchase.

HampshireH

The council will not get into a bid war. They will pay what they think it's worth whether that's lower or not. They have first refusal.

Really you shouldn't be marketing it. Hopefully you don't have to pay your agent if the council do indeed buy it back.

I expect they will decline to purchase. Of course this depends on location but most are more interested in regeneration than buying back right to buys. However you will have to pay back a portion of the discount. Depending on which year you are in will depend on how much.

That is probably far more valuable to them than buying back your property at twice of three times the value they sold it to you for.

Chandler85

Where we are, the local councils and housing associations virtually always buy the houses back (when they are in the 5 years) as with the rebate/ return of the discount it makes financial sense normally.

mimi1234

I'm not sure exactly but I thought you would have to repay the discount you received and then do what you want.  I could be wrong though.    

NameUnavailable

Hopefully you agreed with the agent that they would market the property even though the Council have first refusal, otherwise the agent will almost certainly want the charge their commission if the council do buy it back!

deannagone

NameUnavailable, unless the EA introduced the council to the buyer, they have no way to claim commission. 

hazyjo

deannagone said:

NameUnavailable, unless the EA introduced the council to the buyer, they have no way to claim commission. 

Not true if they have sole selling rights. Check the contract.

HampshireH

deannagone said:

NameUnavailable, unless the EA introduced the council to the buyer, they have no way to claim commission. 

I imagine that's going to depend on their contract. Most don't choose to work for free. If they were told that the council had first refusal and if it's actually in an area with a high buyback rate it would be odd for them to market it for free (just my view as doesn't make any sort of business sense)

[Deleted User]

Dougie_Bilbie said:

My question is can I say to the council (who have first refusal) that I have had a better offer than what they want to but it for and can I turn thier offer down if it is lower? 

My guess would be no. First refusal means first refusal.