| What is Social Homebuy? |
Social HomeBuy allows social housing tenants to buy their current home either outright or on shared ownership terms with the benefit of a discount.
To do so, their landlord must have decided to take part in the scheme. This is likely to be of interest to tenants who don’t qualify for the Right to Buy or the Right to Acquire or who are not currently in a position
to buy their home outright.
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| How does Social Homebuy work? |
Housing association or council tenants can buy their existing homes, where the landlord has decided to offer this opportunity. Homes are usually bought on a shared ownership basis with a minimum share of 25%. However, the property can be bought outright at the outset.
The maximum discount will vary between £9,000 and £16,000, depending on the location of the property. The amount of discount payable will be in proportion to the initial amount purchased.
There is only one payment of discount, payable on the purchase of the initial share. For that reason, purchasers are encouraged to buy as large a share as they can afford from the word go. If the property is sold within five years, the discount is repayable.
When the purchaser comes to sell their home, the landlord will have the chance to buy the property back at market value or nominate another purchaser. |
