Leaseholders

Your lease

Repayment of the Right to Buy discount

If you sell your home within the first five years of owning it you will have to pay money back to the council. The amount you have to pay back will be a percentage of the amount you sell the property for, less the value of any improvements you have made. The percentage will depend on the amount of discount you received when you bought your home and how soon you sell it. After five years, you can sell your home without having to pay back any money.

Example

• If your home was valued at £200,000 when you bought it under the Right to Buy, and you received a discount of £16,000, this means your discount was 8%
• If the market value of your home at time you sell it is £220,000, then 8% of this is £17,600
• If you sell your home in the discount repayment period (the first five years of owning it), you will have to pay the council back one-fifth of £17,600 for each year or part year left in the discount repayment period. (See the table below)