How
these schemes work in practice
You may be
entitled to buy your current council home at a discount price. To give you
an idea of how much of a discount you are likely to receive look at the
two examples and use the calculator below to fill in your details:
Example
1
Jane Brown has been a Council tenant for 10 years. She lives in
a flat, which has been valued at £80,000. Under the Right to Buy,
Jane will receive a 60% discount that is £40,000. However, the
maximum discount that anyone can receive is £16,000. This means
she can purchase her flat for £64,000, that is £80,000
less discount of £16,000.
Example
2
Mr
and Mrs Ali have been council tenants for 5 years. They have applied to
buy their newly built Council owned house. Their new home has been valued
at £100,000, however it cost the Council £120,000 to build
it. Under the Right to Buy (Cost Floor rules) the discount must not reduce
the price you pay below what has been spent on it. So their discount will
have to be forfeited. This means they can purchase their house for £100,000,
as this is the market value.
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