Buying your home...

This information tells you everything you need to know about buying the Helena property where you are currently a tenant. There’s lots of advice to help you decide if buying is right for you, and information on the different schemes available to help you.

It also explains the difference between the “right to buy” and the right to acquire”, how much discount you might get, and some new rules which came into effect in 2005. We’ll take you step by step through the process of buying your home and explain the circumstances where you might not be able to buy or acquire your property.

Is buying right for me?

Deciding to buy your home is one of the biggest financial decisions you will ever make, so it’s important you think things through carefully.

Remember, once you become a homeowner, as opposed to a tenant, you are responsible for costs which previously would have been paid for by Helena.

These include all the costs of maintaining your home, including improvements, routine repairs, and major structural repairs. If you become a leaseholder by buying your flat, you will also have to pay service charges each year.

Then of course there’s all the other costs of home ownership – such as mortgage repayments; mortgage protection insurance in case you fall ill or lose your job; life assurance; buildings and contents insurance, and ground rent.

Buying a house itself is also costly. You may need to pay for a solicitor or licensed conveyancer; as well as survey costs, Land Registry fees, mortgage arrangement fees and sometimes Stamp Duty.

Also, if you are currently claiming Housing Benefit you would also no longer be entitled to claim. You might still get income support but this is not usually payable for longer than 39 weeks.

Pensioners should also be aware that, once you own your home, its value might affect whether you can get help with the costs of residential care.

What should I do if I am approached by a company or a person offering to help me buy my home?

First you should check out what’s in it for them and talk to your landlord before signing up to any deal.

Some companies offer tenants money up front in a deal under which the company ends up owning the property. This is not always good for you, because the money you get may not be enough to buy another home. Some tenants have found themselves homeless after agreeing to such deals.

Where can I go to for help and advice?

Free advice is available from our Right to Buy team on 01744 675735 or 01744 675738.

What’s the difference between right to buy and right to acquire?

This depends on whether you were a tenant with St Helens Council before Helena Housing took over in 2002 or if you became a tenant after this change.

If you held your tenancy with the local authority (that is before 1 July 2002) then you would have the right to buy (subject to exception) if you satisfy the initial qualification period.

If you a became a tenant on or after 1 July 2002, then you would have the right to acquire (subject to exception) if you satisfy the initial qualification period.

The differences in the schemes are as follows:

What are the discount rules?

This also applies to Preserved Right to Buy but takes into account works previously done on the property by the landlord over 15-16 years and may include acquisition and building costs.

What new rules came into effect in 2005?

The Housing Act 2004 came into force in January 2005 and made a number of changes to the Right to Buy/Acquire rules.

Previously you must have been a tenant for two years before you could qualify. This has now been increased to five years.

And if you resell your house new rules apply.

The amount of discount you will have to repay is now a percentage of the market value of the property when it is resold.

Also, the discount repayment period was extended from three years to five years. The discount repayment period is the time during which you will have to repay some of your discount if you sell your property.

If you decide to sell your property to a third party during the discount repayment period you must repay some or all of the discount as if you had actually sold your home at the time of the agreement.

If you wish to resell your home within 10 years you must now offer it first to your former landlord (i.e. Helena) or to another body as prescribed by the Secretary of State – at market value.  

The period after which landlords can serve notice on tenants requiring them to complete their right to buy/acquire purchase was reduced from 12 months to three months.

The Act also brought in new rules requiring landlords to give information to tenants on the costs and responsibilities of home ownership.

Applications will be suspended where an initial demolition notice is served, and end where a final notice is served.

If we serve an initial demolition notice on your property your application is now immediately suspended. Or if we serve you with a final notice of demolition, your application will be closed.

Why might I not be able to buy or acquire my home?

There are a number of exceptions to the right to buy/acquire. You have the right to request a review within 56 days of a refusal.

An application might be refused if:

• Your home is particularly suitable for occupation by elderly people.
• An initial demolition notice is served; in which case applications are suspended. If a final demolition notice is served, then any existing applications are cancelled and no new applications can be made.
• Your home is in sheltered housing for the elderly, the physically disabled, the mentally ill or the mentally disabled.
• Your house or flat is on land which has been bought for development, and which is being used as temporary housing before the land has been developed.
• Your home is owned by your employers so you can be near your place of work.
• You are an employee whose home is inside the boundaries of a school, a social service home, another type of operational building, or cemetery.
• A tenancy has been provided for members of a police force where homes have been provided free from rent and rates.
• A tenancy has been provided for fire authority employees who have to live near to the station where they work and whose home has been provided by their employer.
• Temporary letting (of up to three years) of homes (usually let to employees mentioned above).
• The home is let as part of business or agricultural premises (e.g. public houses, farms, shops).
• The homes is one which the landlord has leased from someone else and which has to be given up empty when the owner wants them.
• Your home is an Almshouse.
• The home is let by a charitable social landlord, a charitable housing trust or association.
• The tenancy has been given to students so they can follow certain full-time courses at university or college.
• The tenancy has been given to someone moving into the area from another district to take up a job and given a home temporarily while they look for a permanent home.
• The tenancy is for a homeless person secured under Section 193 of the Housing Act 1996.
• The tenancy is for people who used to be squatters but have now been given a fixed license to occupy a home.
• The property is covered by a long fixed-term lease (of over 21 years)
• A temporary letting has been granted to someone while their home is being improved or repaired – where they were not a secure tenant in their previous homes.
• A Suspended Possession Order has been obtained against a property, as a result of a breach of tenancy including rent arrears, and is subsequently breached.
• Certain bankruptcy proceedings are underway. That is, if the person, or one of the persons, has a bankruptcy petition pending against them; has a receiving order in force against them; is an undischarged bankrupt; or has made a composition or arrangement with his/her creditors the terms of which remain to be fulfilled.
• The landlord has been granted a suspension of the right to buy/acquire by the court, if the court is satisfied that the tenant or a person residing or visiting the property has engaged in anti-social behaviour and that it is reasonable to make the order.

How do I apply?

If you decide that buying your home is right for you, then you will need to make an application directly to us. You can get a free application form for either the Right to Buy or the Right to Acquire scheme by calling in to your neighbourhood office or by contacting the Right to Buy team on 01744 675735 or 01744 675738 . Staff will be happy to help you complete your form.

A step by step guide to applying

Step 1 – Applying to buy

First pick up the relevant application form and complete it carefully, providing as much information as possible. This form is very important as it will be used to decide whether you can buy your home or not and if so and how much discount you will get.

Word of warning: be wary of anyone who approaches you offering to complete application forms to buy your home, especially if they ask you to pay for this.

When you have filled in the form, return it to: Right to Buy Team, Helena Partnerships, 3rd Floor, Court Building, Alexandra Park, Prescot Road, St Helens, WA10 3TT or drop it into any of our neighbourhood offices.

Step 2 – Landlords response notice

When we receive your application form we will send you a notice (RTB2/RTA2) telling you whether or not you have the right to buy/acquire. You should get this within four weeks if your application is for right to buy and within eight weeks if your application is for the right to acquire.

If you do not have the right to buy/acquire your home, we will tell you and explain the reason why. If you disagree with the decision, and/or the explanation given, you can get advice from a Citizens Advice Bureau or a solicitor or you can write to the Department of Communities and Local Government (DCLG) at PO Box 236, Wetherby, West Yorkshire, LS3 7NB.

Step 3 – Your landlord’s Section 125 Notice

If we agree to sell your home to you, we will send you a separate offer notice (known as the Section 125 Notice) which tells you the price you will have to pay and further procedures.  This must be sent within eight weeks of receiving your RTB2/RTA2 form if your home is a house and you are buying a freehold, or within 12 weeks if your home is a flat or maisonette.  If you are buying a house on leasehold terms, the time limit is also 12 weeks.

T he Section 125 Notice is an important document and you should read it carefully : 

It will tell you:

• The description of the property which you have the Right to Buy/Acquire.
• The price we think you should pay for it. To calculate this we work out how much your home was worth at the date you submitted your application form, and then take off the discount.
• If it is a flat or maisonette, estimates of the service charges or improvement costs you will have to pay during the first five years after buying your home,
• Any structural defects that we know about.
• Any further information that we think you should know.

Step 4 – Appealing to the District Valuer

If you think our valuation is too high, you have the right to obtain an independent valuation from the District Valuer. Before doing so, you have to request a ‘determination of value’ from us in writing, within three months of receiving the Section 125 notice. You then have four weeks to put your case to the District Valuer, who will need to inspect your home. The District Valuer’s decision is final – and they may decide we have valued your home at too high a price, or even at too low a price.

Step 5 – Resolving other questions about the Section 125 notice

If you want to question anything else in the Section 125 notice (the size of your discount, the effect of the cost floor, service charges, your home’s boundaries etc) now is the time to do so. You should contact the Right to Buy team on 01744 675735 or 01744 675738.  If you or the landlord disagree about something, you have the right to go to the county court for a ruling.  This can be expensive, and you should therefore get legal advice first.

Step 6 – Getting a survey

Before you make a final decision, you should get an independent survey from a qualified surveyor. When you apply for a mortgage, the bank or building society will usually arrange for a survey to be carried out. This survey is to value your home for lending purposes and may not uncover any structural problems.

Step 7 – Getting legal advice

Before deciding to buy, you should get legal advice. If you don’t know a solicitor or a licensed conveyancer ask your bank or building society for one they recommend.  Your local library should also have details of solicitors in your area, and the type of work they do. Always ask how much it will cost before employing a solicitor or licensed conveyancer.

Step 8 – Telling us what you want to do next

You will now have to decide if you want to either buy your home for the purchase price in the Section 125 notice - or forget about buying, withdraw your application, and carry on paying rent.

When you have decided, you must let us know in writing – within 12 weeks of receiving your Section 125 notice. If the District Valuer has valued your house, you must tell us what you want to do within 12 weeks of the valuation.

If you do not let us know what you plan to do in time, we will send you a reminder. If you do not reply within 28 days of this reminder, we will assume you no longer want to buy your home, and your application will be cancelled.

If you cannot decide within the time limit what you want to do, you can ask us to wait a bit longer for your reply. If you are unable to decide for a good reason (if you were in hospital for example), tell us and your time limit will be extended automatically.

Remember, you don’t have to buy your home just because you have told us you want to. You can still change your mind.  But if you do not tell Helena what you want to do, we will assume you don’t want to buy, and you will have to start again. In the meantime, if the value of your home has gone up, then you will have to pay the higher price.

Step 9 – Completing your purchase

If you are happy with our terms for selling your home to you, and have arranged to raise the money, you should inform Helena Partnerships, in writing, that you are ready and ask your solicitor for advice on the legal documents and making your payment. It may take a few months before you become the owner of your home. 

You should let Helena Partnerships know as soon as you know you are ready to go ahead and buy.  If we do not hear from you for a long time, you may get a warning notice.  This will ask you to complete the purchase within eight weeks. If you don’t, we may send you a second notice asking you to complete your purchase .  If you don’t complete, your application will be cancelled.

Helena Partnerships cannot send a warning notice until at least three months (or 12 months if you applied before 18 January 2005) after your Section 125 notice.

It will help things go smoothly, if you or your solicitor keep us informed of any other issues that may delay the purchase.

Frequently asked questions

Q. Can I include anyone else in my application?

A. You may be able to buy your home jointly with up to three members of your family as long as they have lived with you for the past 12 months, or with someone who is a joint tenant with you.

Q. What happens if I want to sell my house later?

A.   You can sell your property whenever you like, however, you may have to repay some or all of the discount you received at the time of purchase.

If you applied for the right to buy/acquire before 18 January 2005 and you sell your property within three years then you will have to repay some or all of the discount. After three years, you can sell the property without repaying any discount.

If you applied for the right to buy/acquire on or after 18 January 2005 , and sell within five years of buying your property, you will have to repay some or all of the discount. The amount you will have to repay will be calculated as a percentage of the current market value of the property at the time of sale. After five years you can sell without having to repay any discount.

You should note that if you are selling your property within 10 years of purchasing it under the right to buy/acquire scheme, you must offer it at market value back to your former landlord or another body prescribed by the Secretary of State.

Q.  I have rent arrears. Can I still buy my home?

A.   You can still apply to buy your home but your landlord is not bound to complete the sale if you have arrears of four weeks or more.

You should be aware that if your landlord has obtained a suspended possession order against you as a result of rent arrears, and this order is then breached, you will lose your tenancy status and no longer have the right to buy/acquire.

Q.  Once I apply to buy can I still access the free repairs service?

A.   Only essential repairs will be provided whilst your application is being processed. You will not be entitled to any improvement works. If you complete the sale then you will be responsible for any repairs.  In the event your application is withdrawn then you will be able to access Helena Partnerships' normal repairs service.

Q.  Will improvements I have carried out to my home be included in the valuation?

A.   Provided you detail your improvements on your application these will not be included in our valuation.

Q. Someone has made an anti-social behaviour complaint about me. Can I still apply?

A. Yes, but the landlord can apply to the court for a suspension of the right to buy/acquire. The court will grant this order if it is satisfied that the tenant or a person residing with or visiting the property has engaged in anti-social behaviour and that it is reasonable for the court to make the order.

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