TENANTS HANDBOOK SECTION 5 BUYING YOUR HOME

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The Association operates a Voluntary House Sales Scheme to its tenants. Most GHA tenants can apply to buy their homes.

It is the Association’s policy not to sell the following:-

1. Sheltered Dwellings.
2. Bungalows.
3. Properties adapted for disabled persons (at the Association’s discression).

Squatters are not eligible to purchase. In the special circumstances where squatters are subsequently granted the legal tenancy, they receive discount entitlement from the date on which the tenancy was granted.

Persons under 18 years of age will not normally be considered as eligible to purchase.

You may apply to purchase your home irrespective of your length of tenancy. In other words, you may apply to purchase on the day your tenancy is granted. Applications must be in writing.

On receipt of your application the Association will arrange for the property to be valued. You will be advised of the price which will be the market value less any discount to which you are entitled (subject to the Historic Cost Rules).

You will have 6 weeks within which to decide whether to continue with the purchase at the price quoted.

If you accept, GHA will have drawn up a contract for the sale of the property. The contract will be signed by you and GHA and will constitute a binding legal contract. You will not be legally committed to the purchase of the property until this stage has been reached.

Tenants of flats and maisonettes have similar rights to those living in houses. However, while most houses are sold outright, flats are sold by way of a lease for up to 125 years and an annual service charge is payable in addition to the normal purchase price. In addition an annual rent is also payable by purchasers of flats.

Rent Arrears

Applications to purchase made by tenants who are in rent arrears will not be rejected on those grounds, but will be allowed to proceed to completion stage. However, no sale will be completed until the rent account is clear.

Joint Purchase

A secure tenant may purchase jointly with up to 3 other persons. The secure tenant’s interest or share in the property must be at least 25%.

Market Value

Once you apply to buy, we will ask an independent professional valuer to tell us how much your home would be worth if it was for sale on the open market. This is called the market value.

Discount

You may be able to buy your home for less than its market value depending on how long you have been a tenant either with GHA or with any other public housing landlord anywhere in the United Kingdom.

Discounts can range from 30% to a maximum of 60% depending on the length of your tenancy or qualifying tenancies.

Discounts for those purchasing flats or maisonettes can range from 40% to a maximum of 70%.

Historic Cost

If your home was built or purchased by the Association, or had improvements carried out to it, in the year of your application or in the previous 8 financial years we cannot sell it to you for less than the cost of the works involved or the acquisition costs. We will calculate how much money we have spent during that time on either building or improving your home. This is called the Historic Cost. If you qualify for discount which would reduce the selling price below the Historic Cost then we can only sell you the property at the Historic Cost figure.

Selling Again

If you sell your home within 3 years of buying it, you will have to pay back to the Association all or part of the discount you received. The actual amount you have to repay reduces each year you own the property.