Selling ex-council house - will complete after the 5 years discount repayment clause

philbot007

We put our ex council house for sale a month before the 5 year clause was up, which means you have to repay a portion of the discount if you sell the property before 5 years have expired.

We accepted an offer after 2 days of it being for sale, and offered on another property within a week.

The completion won't be for 8 weeks or so (well after the 5 years clause).

Am I right that the council won't be able to ask for a repayment of the discount because the completion date is after the 5 year clause?

molerat

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 discount you received.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/975368/Your_Right_to_Buy_Your_Home_A_Guide_-_2021.pdf

Looks like you entered into the agreement within the 5th year so ............

You did offer the property to your former landlord first ?

LHCalc123

I came to ask the same...did you offer property back under the right of first refusal? This must be done if sold within 10 years of buying through RTB.

deannagone

My first thought too.

AdrianC

molerat said:

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 discount you received.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/975368/Your_Right_to_Buy_Your_Home_A_Guide_-_2021.pdf

Looks like you entered into the agreement within the 5th year so ............

You did offer the property to your former landlord first ?

The question is whether the agreement is "entered into" on accepting an offer, or when the agreement becomes legally binding at exchange...

user1977

AdrianC said:

molerat said:

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 discount you received.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/975368/Your_Right_to_Buy_Your_Home_A_Guide_-_2021.pdf

Looks like you entered into the agreement within the 5th year so ............

You did offer the property to your former landlord first ?

The question is whether the agreement is "entered into" on accepting an offer, or when the agreement becomes legally binding at exchange...

The latter, I would have thought. The non-binding "acceptance" of a non-binding offer is legally meaningless.

House13

No wonder there is a council housing shortage

NameUnavailable

If the OP hasn't offered first refusal to the council I wonder what will happen? Maybe there's something in the paperwork that means they won't get as far as exchange before it's picked up by the solicitors?

philbot007

I have offered the council first refusal but they have declined. 

I would say exchange of contracts would be the important date, not just accepting an offer. Hopefully someone who has been through a similar experience will shed some light. My solicitor agrees with me but I’d rather know for sure. 

Norman_Castle

philbot007 said:

 My solicitor agrees with me but I’d rather know for sure. 

Ask the council.

James-may

How do you get a council house nowadays? seems like a nice little money spinner.
I applied for a council house 10 years ago but was told unless I was disabled or had a child I wouldn't be offered one.

I'm now kinda wondering why I'm paying full whack, when I could have got a house for a 75% discount then sell it on 5 years later for a massive profit.