Selling your property

The amount of discount to be repaid if a property is resold within 5 years is now a percentage of the market value of the property when it is resold.

So, if a sale was subject to a 50% discount entitlement, and the property was subsequently resold 18 months later, the discount repayable would be calculated on the current market value and would be 4/5 of 50%.

Example - If the initial valuation was £100,000 with discount of £26,000 this would equal 26%.

If the new value was assessed at £150,000 and you were selling in the second year, the repayable discount would be £150,000 x 26% x 4/5 = £31,200.

Tenants who agree to sell their home to a third party during the discount period must repay some or all of their discount as if they had actually sold their home at the time of the agreement. This is dealt with as a clause in the Deed and is actioned by selling Solicitors at time of resale. Owners who wish to resell their home within 10 years of it having been sold under the Right to Buy must first offer it at market value to their former landlord or to another body prescribed by the Secretary of State.