How house buyers can get £110,000 discount on their homes if they buy them off local council

COUNCIL house tenants can get a discount of £110,000 if they buy their home under the Right to Buy scheme.

The scheme, which was launched in 1980, lets anyone in a council property buy their house at a reduced rate.

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The maximum discount a buyer can get is £112,800 (in London) although the maximum reduction in the rest of England is £84,600.

This discount rises every April in line with the consumer price index (CPI) measure of inflation.

But it can be confusing, having changed several times over the years.

Here’s what you need to know.

How is the discount worked out?

The discount is based on a number of factors including how long you’ve been a tenant with a public sector landlord, how much the property is worth and whether you are buying a flat or house.

If you have spent between three and five years in a council house (one year here, one year there still counts) you can get a 35 per cent discount.

After five years, the discount goes up 1 per cent for every extra year you’ve been in a council property.

For flats, the discount is 50 per cent and this goes up by 2 per cent for every year you’ve been a council tenant.

Both have maximum discounts of 70% across England and £112,800 in London boroughs (whichever is lower).

How do I work out my discount?

You can use the Government’s Right to Buy calculator to find out how much money you could get off.

How to apply for Right to Buy

To apply for the Right to Buy scheme you must first fill in the Right to Buy application form (RTB1 notice).

Once filled in, send the form to your landlord who must say yes or no within four weeks of getting your application (eight weeks if they’ve been your landlord for fewer than three years).

If your landlord agrees to sell, they’ll send you an offer.

What happens if I sell my Right to Buy house?

You’ll usually have to repay some or all of your discount if you sell your home within 5 years.

You’ll have to pay back all of the discount if you sell within the first year.

If you sell your house within 10 years of buying through Right to Buy, you must first offer it to either your old landlord or another social landlord in the area.

If the landlord does not agree to buy the within eight weeks, you can sell your home to anyone.

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This post first appeared on thesun.co.uk