Right to Buy, is the cost floor payable?

Magst68

I’ve just received the valuation, I’m confused about the ‘cost floor’ though. It says the cost floor is around £12,000 (much lower than the asking price after discount), there is no explanation what this £12,000 is for and it’s not clear if it is added to the total cost. Does anyone know if this will be payable to the council?

Caz3121

Useful links on this thread https://forums.moneysavingexpert.com/discussion/6100606/right-to-buy-cost-floor-confusion

Magst68

Thanks for your reply Caz. That information doesn't make it any clearer though  

TrickyDicky101

The first link on the thread Caz referenced above looks to provide you with what you need:

Excerpt from https://www.ownyourhome.gov.uk/scheme/right-to-buy/applying/things-that-affect-discount-amount/

[quote]Cost floor rule – Your discount may be reduced by the ‘cost floor’ rule. This may apply if your home has recently been purchased or built by your landlord or they have spent money on repairing or maintaining it.

Your discount could be reduced to nil if the cost floor is more than the value. If this happens, you would pay the full market value for your home.

The cost floor period for council properties is either:

• the 10 year period prior to receipt of the RTB application form: or
• 15 years if your home was built or acquired by your landlord after 2 April 2012

If you are buying under the Preserved Right to Buy, the cost floor period is 15 years regardless of when it was built or acquired.[/quote]

Relevant bit highlighted.  Since your cost floor is much lower than the asking price after discount then I read it as not impacting you at all.