Talk

Advanced search

Anyone know anything about purchasing council houses?

(7 Posts)
Badvoc Sat 08-Feb-14 18:29:22

This is a hypothetical question but my cousin has just bought her council house. She was telling mum how much she got it for etc and then said that they aren't allowed to sell for 5 years after they have bought it.
Fair enough.
But what if - god forbid - they died?
What then?
Would their children have to rent it out/live in it until the 5 years were up?
How does it work?

pancakesfortea Sat 08-Feb-14 18:33:38

It's not quite that you're not allowed to sell, its that you have to pay back a proportion of the discount the council gave you off the market price (which can be as much as 75k). So if you sold the next day you would pay back all off the discount. One year later, 80% and so on. After five years you are free to sell without repaying anything.

Not sure off the top of my head what rules apply on death but I would guess the same principle - ie that part of the discount would have to be repaid. Unless there's an exemption.

pancakesfortea Sat 08-Feb-14 18:34:17

Sorry. All of the discount, not all off.

Badvoc Sat 08-Feb-14 18:35:47

Ah, I see.
Thank you!

Jcee Sun 09-Feb-14 08:41:21

A house purchased under right to buy can be passed on in a will with no repayment. Otherwise it's as pancakes says and if the property is to be sold, the LA has the right of first refusal to buy.

Badvoc Sun 09-Feb-14 08:50:02

Thank you

pancakesfortea Mon 10-Feb-14 19:33:11

The first refusal thing is a separate thing to the repayment. I think first refusal lasts 10 years these days. But inheritance doesn't count as a sale so you don't have to give the council the option to buy back, or pay the discount back at that point. But I believe the obligation to repay the discount still remains until the 5 years is up.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now