After Buying My Council Home
Contents
- Notice of Postponement
- Sale of property within 10 years of buying - Right of First Refusal
- Adding or removing someone from the title - Exempt Disposal
- Alterations to my property
Notice of Postponement
The Housing Act 1985 provides that the mortgage obtained to purchase the property ranks in priority to the Council's Discount Charge.
If additional money to the purchase price is borrowed then this ranks behind the Discount Charge.
Extra borrowing must be for an 'approved purpose', which can be for:
- A re-mortgage with a different lender, without extra borrowing.
- A leaseholder, to pay for service charges.
- Owning part of the home, to make an interim or final payment.
- To pay for works to the property.
The Discount Charge is noted on the title for a period of 5 years from the completion date of the purchase.
I want to borrow more money from my mortgage company, I've been told to contact the Council and get consent, who should I contact?
If you are still within the 5 year discount period, then your Lender or Mortgage Advisor or Solicitor will need to request the Council to postpone the Discount Charge by writing to:
Legal Services, Town Hall and Civic Offices, South Shields, Tyne and Wear NE33 2RL
We will require the following details:
- Amount of the extra borrowing
- A copy estimates for the work to be carried out to your property
There is an administration fee of £128.00 which will be required to be paid once a decision has been made as to whether a postponement is agreed.
Please note the administration fee is reviewed annually.
I want to change my mortgage lender can I do this?
If you are still within the 5 year discount period, then your Lender or Mortgage Advisor or Solicitor will need to provide details of the amount outstanding on your existing mortgage and the amount you are borrowing on your new mortgage by writing to:
Legal Services, Town Hall and Civic Offices, South Shields, Tyne and Wear NE33 2RL
If you are borrowing extra money to the amount outstanding on your existing mortgage, we will require copy estimates for the work to be carried out.
There is an administration fee of £128.00 to be paid before the Council will issue the Notice of Postponement to your new Lender.
Please note the administration fee is reviewed annually.
Sale of property within 10 years of buying - Right of First Refusal
The Housing Act 1985 provides for the property to be offered back to the Council within the first 10 years, this is the Right of First Refusal and is governed by the Housing (Right of First Refusal) (England) Regulations 2005
I bought my home 3 years ago and now want to sell it
If you wish to sell your home in the first 10 years of you purchasing it, then prior to marketing your home, you will need to offer it back under the Right of First Refusal Regulations by writing to:
Legal Services, Town Hall and Civic Offices, South Shields, Tyne and Wear NE33 2RL
The Regulations stipulate what you must state in your offer, these are:
1. The type of property (semi-detached, terraced (mid or end) flat or maisonette); and
2. The number of bedrooms; and
3. The type of Central Heating; and
4. Any improvements you have carried out to the property since your purchase
Once your offer is received Legal Services will acknowledge receipt and explain the Right of First Refusal procedure.
The Council has 8 weeks from the receipt of your offer in which to decide whether it wishes to accept or reject your offer, the Council will also offer your property to Registered Social Landlords, who will also to decide within that 8 week period if they wish to accept or reject your offer.
If the offer is rejected you will have 12 months from the date of rejection to sell your property.
If you fail to sell your property within the 12 months, then you will have to reoffer the property to the Council and go through the procedure again.
You have rejected my offer and I now have a buyer, will I have to repay the discount and if so how much will it be?
If you are selling your property within the first 5 years of buying it you will have to repay an amount based on the original percentage discount, the length of time you have owned it and the price you receive.
In the first year following purchase, the full amount must be paid back. This reduces to 80% in the second year; 60% in the third; 40% in the fourth; and finally 20% in the fifth year.
As an example: if you have owned your home for 3 years 6 months, you received 60% discount when you purchased and you sell your property for £100,000.00, 60% of £100,000 = £60,000 you will need to repay 40% of £60,000.00 = £24,000.00.
Once you have a completion date your solicitor will need to write to Legal Services, with a copy of the contract in order to verify the price you are being paid and to calculate the amount of discount to be repaid.
How can I find out the percentage figure of discount I will have to repay?
If you bought a house, the Transfer Deed contains the percentage figure within the paragraph headed Discount Repayment Covenant.
Your solicitor should have provided you with a copy of the Transfer when you purchased.
If you purchased a flat or maisonette, the Lease Deed contains the percentage figure in clause 2.1.12.
Your solicitor should have provided you with a copy of the Lease when you purchased
If you do not have a copy of the Transfer or Lease, you should contact your solicitor first for a copy.
If, they are unable to provide you with the Deed, you will need to write to Legal Services requesting a copy.
There will be a charge for the retrieval of the file and copying of the Deed and the cost will be provided to you at the time of your enquiry.
Adding or removing someone from the title - Exempt Disposal
Background: S160 Housing Act 1985 provides for the title of the property to be changed in certain circumstances which will not trigger the Right of First Refusal or the repayment of the Discount Charge, these are:
- A transfer of the property by the owner to their self and another person or from joint owners to a sole person, who is a qualifying person. A qualifying person can be the original owners; a spouse or civil partner; a family member who has resided with the owner for 12 months prior to the transfer taking place.
- A person who has inherited the property under a will or intestacy
- An Order made under one of the following: section 24 or 24A of the Matrimonial Causes Act 1973; section 2 of the Inheritance (Provision for Family and Dependants) Act 1975; section 17 of the Matrimonial and Family Proceedings Act 1984; paragraph 1 of Schedule 1 to the Children Act 1989; or Part 2 or 3 of Schedule 5, or paragraph 9 of Schedule 7, to the Civil Partnership Act 2004.
I bought my home in my sole name 2 years ago, my girlfriend/boyfriend/partner has now moved in with me and I want to put the property into our joint names, can I do this?
If your partner has not lived with you for a full 12 months, then you are unable to transfer the property into your joint names, as they are not a qualifying person, as a family member.
Once you have lived together for over 12 months, your solicitor will need to write to Legal Services, Town Hall and Civic Offices, South Shields, Tyne and Wear NE33 2RL and provide evidence such as a Statutory Declaration made by your partner that they have resided with you with for the required period. Checks will be made with Council Tax and the Electoral Register that your partner has been registered for 12 months at the property.
If your partner does meet the criteria, then when the Transfer is completed, your solicitor will need to send to Legal Services a copy of the Transfer and there will be an administration fee of £128.00 to be made before the Certificate of Exempt Disposal is issued to your Solicitor.
Please note the administration fee is reviewed annually.
If the transfer of ownership is also connected to a re-mortgage please see the reply given above regarding postponement of the Discount Charge.
The Right of First Refusal Regulations and Discount Charge will still apply until they are time expired.
I bought my home in my sole name and I have now married, can I transfer it into our joint names?
Your solicitor will need to write to Legal Services, Town Hall and Civic Offices, South Shields, Tyne and Wear NE33 2RL and provide a copy of your marriage certificate, together with a copy of the completed transfer and the administration fee of £128.00 and a Certificate of Exempt Disposal will be issued to your Solicitor.
Please note the administration fee is reviewed annually.
If the transfer of ownership is also connected to a re-mortgage please see the reply given above regarding postponement of the Discount Charge.
The Right of First Refusal Regulations and Discount Charge will still apply until they are time expired.
I bought my home jointly with my wife/husband, we are now divorcing and the home is to be transferred into my sole name, what will the Council require?
Your solicitor will need to write to Legal Services, Town Hall and Civic Offices, South Shields, Tyne and Wear NE33 2RL and provide a copy of either your Decree Absolute or if an Order of Court under section 24 or 24A of the Matrimonial Causes Act 1973 or section 17 of the Matrimonial and Family Proceedings Act 1984 has been made, a copy of the Order, and a copy of the transfer together with the administration fee of £128.00 in order that the Certificate of Exempt Disposal will be issued to your Solicitor. Please note the administration fee is reviewed annually.
If the transfer of ownership is also connected to a re-mortgage please see the reply given above regarding postponement of the Discount Charge.
The Right of First Refusal Regulations and Discount Charge will still apply until they are time expired.
I bought my home jointly with my wife/husband/partner, and we wish the home to be transferred into my sole name, what will the Council require?
Your solicitor will need to write to Legal Services, Town Hall and Civic Offices, South Shields, Tyne and Wear NE33 2RL and provide a copy of the Transfer together with the administration fee of £128.00 in order that the Certificate of Exempt Disposal will be issued to your Solicitor. Please note the administration fee is reviewed annually.
If the transfer of ownership is also connected to a re-mortgage please see the reply given above regarding postponement of the Discount Charge.
The Right of First Refusal Regulations and Discount Charge will still apply until they are time expired.
Alterations to my property
I own my home but want to put a conservatory on, do I have to get consent?
If you purchased a house prior to Spring 2003 then under the Restrictive Covenants of the Transfer you will need consent to make any alterations and additions. You should write to Landcharges, Legal Services, Town Hall and Civic Offices, Westoe Road, South Shields NE33 2RL.
There will be a charge of the consent the cost of which will be advised by Landcharges.
You will also need to contact the Planning Office to find out whether you need planning permission for your proposal.
If you purchased a flat or maisonette, under the terms contained in your Lease you must not make or allow to be made any alteration or addition to the structure of the Property or to the external appearance of the Property without the Landlord's prior written consent.
You should contact the Leasehold Officer, who will provide you with a form to provide details the alterations you wish to carry out.