Getting advice on the Right to Buy
The 'Communities and Local Government' are concerned that tenants do not always receive good advice when they ask private companies and individuals for help in buying their council homes.
They are concerned that sometimes, tenants are asked to pay a lot of money for things that landlords do for nothing - for example, Right to Buy application forms are available free from landlords. Some companies offer tenants money up front in a deal under which the company ends up owning the property - this is known as a deferred resale agreement. This is good for the company, which can charge a higher rent than the local authority could when it let the property. But it is not always good for tenants, because the money they get may not be enough to buy another home. Unfortunately, tenants have found themselves homeless after agreeing to such deals. It should be noted that since 18 January 2005, entering into a deferred resale agreement triggers the repayment of discount at the time that the agreement is entered into, not the time at which the ownership of the property is transferred.
It is often claimed that the right to buy scheme is going to be changed or ended. The Government have made it clear that it has no intention of making any further significant changes to the right to buy scheme. Be suspicious if anyone tries to tell you otherwise. They may be trying to persuade you to do something that benefits them rather than you.
The 'Communities and Local Government' recommend that before you agree to any offer or deal , you ask who the adviser works for, whether they sell mortgages or other financial services, and whether he or she gets commission for selling you a particular product.
If you need advice on any aspect of the Right to Buy scheme, contact the Right to Buy Administrator using the details to the right of the page or visit the websites of the organisations below: