If you were a secure tenant of Amber Valley Borough Council and became an assured tenant of Amber Valley Housing (now Futures Homescape), at the time of stock transfer (24th February 2003), you may be allowed to buy your home under the preserved right to buy scheme.
You don't have to have lived at the same address or to have been a tenant of the same Housing Authority to qualify. Up to three members of your family may be able to buy jointly with you.
Click the links below to find out more about the Preserved Right to Buy.
Most Futures Homescape tenants who live in a property as their only or principal home have an assured tenancy.
Exceptions include tenancies granted to Futures Homescape employees such as wardens of sheltered accommodation, or to caretakers under their contract of employment.
Tenancies given on a temporary basis to people seeking employment in the area or to homeless people are not assured/secure tenancies.
If you need more information about your tenancy status, please contact us.
Most properties built or purchased with public funds may be purchased. However there are exemptions to this rule:
Properties provided specifically for the elderly, sheltered housing properties and properties held by Futures Homescape for non-housing or for employment purposes.
If you live in a house you may buy the freehold; if you live in a flat you may be granted a long lease for 125 years.
Your home will be valued at market value by Futures Homescape. The value of any improvements which you have made will be disregarded. If you disagree with the valuation you may appeal to the District Valuer, whose decision will be final.
You will be entitled to a discount on the market value of your home. This amount will depend on how long you or your partner have been Futures Homescape or public sector tenants and on the type of property you wish to buy.
If the property is a house, the discount will be 32%, increasing by 1% per annum to a maximum of 60% after thirty years.
If the property is a flat, the discount will be 44%, increasing by 2% per annum after the first 2 years to a maximum of 70% after fifteen years.
However, the maximum discount you may receive is capped at £75,000.
If you have previously had a discount to help you buy a home, this may be deducted from your Right to Buy discount.
Account will be taken of all Futures Homescape tenancies you have held. Discount may also be given for other types of public sector tenancies you have held, including with
- Housing Associations,
- Government departments,
- Local Authorities,
- gas, water, electricity boards and other public bodies
Futures Homescape is not allowed to apply discounts where the purchase price of your home would be less than the cost of building and improvement. If building or improvement by Futures Homescape took place during the last fifteen years, you may not be entitled to a full discount.
First of all, fill in an application form. These can also be obtained from our office or by contacting us.
We will then let you know whether or not you qualify to buy. If you do, your house will be valued and you will be sent an offer stating the price and the discount available to you.
You are advised to have the property surveyed and you must arrange and pay for this yourself. You will also need a solicitor to act for you.
There are certain costs that you may need to pay on top of your purchase price. These are:
Stamp Duty Land Tax
If the purchase price is more than £125,000 the Stamp Duty Land Tax is between 1% and 4% of the purchase price, on a sliding scale.
- Solicitors Fees
The solicitors acting on your behalf will charge you a fee. This is not a set fee but one that will vary. So it is advisable to shop around. - Mortgage Lender Fees
Your mortgage lender will usually charge you an administration fee and a valuation fee. - Surveys
We would also recommend that you have a full building and asbestos survey before you decide to go ahead with the purchase.
Once you have purchased the property you will not get housing benefit to help with mortgage costs. Your mortgage lender will want you to take steps to safe guard your property purchase.
This would include:
- Buildings insurance for example to provide cover in the event of a fire
- Life insurance in case you had an accident and could not work again
- Mortgage payment protection insurance should you lose your job through no fault of your own
- Contents Insurance, to provide cover for the contents of your home in the event of a burglary for example.
If you do not maintain your mortgage payments regularly, you could lose your home.
Other costs that you will need to meet are items such as council tax, water rates, sewerage, gas, electricity and other utilities.
Once you have purchased your home, you will be responsible for all of the maintenance of that property. This will include items such as leaking roof, heater/boiler broken, external painting, blocked drains and many more. It is advisable that you make sure you have a contingency fund in the event that something goes wrong.
If you buy the lease of a flat or maisonette, Futures Homescape will normally be responsible for carrying out external structural repairs and for the repair and maintenance of shared areas such as grounds, entrance halls and car parks.
In most cases you will have to pay an annual service charge towards the company's costs. This service charge may also include a contribution towards the costs of improving the flat or the land where it is situated, providing caretaking, insurance and management.
If you wish to know more, please contact us.
Right of First Refusal
If you wish to resell or dispose of your home within 10 years from the date you purchased it you will be required to offer it to back to us at full market value. The market value must be agreed between Futures Homescape and you. If we are unable to agree the market value this will be determined by the District Valuer. If your offer has not been accepted within 8 weeks then you will be free to sell your home on the open market.
If you sell within the discount repayment period (specified below) you will have to repay some or all of the discount. The amount you repay will depend on when you made your application to buy.
If you applied to buy your home before 18 January 2005 and sell within 3 years of buying your home:
- If you sell within the first year after your purchase the whole of the discount will have to be repaid, two thirds within the second year and one third within the third year. After 3 years you can sell without repaying any discount.
If you applied to buy your home from 18 January 2005 onwards and sell within 5 years of buying your home:
- If you sell within the first year of purchase the whole discount will have to be repaid. Four fifths are repayable within the second year, three fifths within the third year, two fifths within the fourth year and one fifth within the fifth year. After 5 years you can sell without repaying any discount.
- If you sell within 5 years of purchase, the amount of discount to be repaid, will be a percentage of the resale value of the property, disregarding improvements you have made.
Example:
At the time Mr Smith purchased, his home was valued at 100,000. He received a discount of 24,000. Then, at the time of sale, the property is sold at a resale value of 150,000. At the time of the sale Mr Smith is within the second year of purchase.
Sum:
Firstly we work out the discount percentage you received at the time of purchase (this percentage will be used in the resale calculation).
Discount ÷ valuation x 100% = Discount Percentage Received
In Our Example:
24,000 ÷ 100,000 x 100% = 24%
Resale Calculation:
Resale value x discount percentage received x repayment period = Discount repayment
In Our Example:
Mr Smith sold his property at 150,000. Because he sold the property within the second year of purchase he will have to repay four fifths (80%).
150,000.00 x 24% x 4/5 = 28,800.00 Discount repayment
Exceptions are made for sales to an existing joint owner, spouse, former spouse or a member of the family living in the property.
Futures Homescape has a right of first refusal on your home
For additional information regarding the Right to Buy contact us.
