North Wales Housing Association Ltd - 01492 572727

What is Right to Acquire?	Claiming Right to Acquire
	Should you wish to consider the purchase of the property you currently rent you must apply to exercise the RTA by written notice to the Association using Form PG1. For further details please contact: Ms M L Williams, North Wales Housing Association Ltd., Plas Blodwel, Broad Street, Llandudno Junction, Conwy, LL31 9HL Tel: 01492 572727 This document is available on request in English, Welsh, and English or Welsh braille, large print, MOON, audio tape/CD or CD-ROM.
The Right to Acquire is a scheme giving eligible tenants of registered social landlords the legal right to buy the home they currently rent. This booklet explains how the scheme operates from 18 January 2005 following the implementation of the Housing Act 2004 and provides you with some general advice on the costs of home ownership. Remember – this booklet is only a guide to the scheme and is not a substitute for independent legal advice. Your landlord will help in explaining the scheme.
Who has the Right to Acquire ?
If you are a tenant of a housing association or another registered social landlord, you may be able to purchase the home you currently rent. To be able to claim the right to acquire and purchase your home, you need to be an eligible tenant living in a property that qualifies for the scheme. The information below will help you decide whether you are an eligible tenant and what properties qualify for the scheme.
You Have The Right To Acquire If :
You are an eligible secure or assured tenant of a housing association, housing company or other social landlord registered with the Welsh Assembly Government. The Right to Acquire cannot be claimed by tenants of local authorities. You live in a property, which has been provided, or improved, with Social Housing Grant given by the Welsh Assembly Government or a local authority on or after 1 April 1997. A property transferred from a local authority to a registered social landlord on or after 1 April 1997 will also qualify for the scheme. If your landlord does not own the freehold of the property, the freeholder must also be a public sector landlord for the property to qualify. As well as occupying a qualifying property you must: Have spent a total of two years as a tenant of a public sector landlord (see Annex A) or in accommodation provided by the armed forces if you have been a public sector tenant before 18 January 2005; ? have spent a total of five years as a public sector tenant, if your first public sector tenancy was created on or after 18 January 2005 Live in a property which is a self-contained house or flat and is your only or main home. You will not be able to claim the Right to Acquire if you are: An undischarged bankrupt or have a bankruptcy petition pending against you The subject of a possession order served by the court, at the request of your landlord, or Subject to a formal creditors agreement made under the Insolvency Acts Back to Top
How to apply for the Right to Acquire
If you think you are eligible for the scheme, you should contact your landlord to claim the Right to Acquire. You will need to complete an application form, which you may obtain from your landlord. Once you have completed the form you must sign and date it and send it to your landlord. If you are a joint tenant, the other tenant(s) must also sign the form.
What Happens After You Have Applied For The Right To Acquire
Your landlord will check the details given in your application, will confirm whether you have the Right to Acquire and, if you do, will inform you of the purchase price of the home you currently rent. Your landlord’s answer should be given within four to eight weeks after receiving your application, depending on the checks that need to be made on the information you have provided. It should take a further eight to twelve weeks, depending on whether you live in a flat or house, for your landlord to give you details about the price of the property and amount of discount.
Your Discount Entitlement
A tenant buying their home under the Right to Acquire in Wales is entitled to a discount of 25% of the purchase price up to a maximum discount of £16,000. If you have previously had a discount to help you buy a home, this may be taken off your Right to Acquire discount. Your landlord will work out the purchase price by getting an open market valuation (to find out how much the property is worth) then deduct your discount. Here are examples of how the price is worked out: Example 1 Your landlord gets a valuation of your home, say this is: £60,000 Your landlord calculates the discount at 25%, which is £15,000 Your landlord subtracts the discount from the value, which in this example gives you a discounted purchase price of £45,000 Example 2 Your landlord gets a valuation of your home, say £80,000 Your landlord calculates the discount at 25% £20,000 But the maximum discount available under the scheme is £16,000 Your landlord will deduct the maximum discount of £16,000 from the value which gives a discounted purchase price of £64,000
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Your Right Of Appeal Against The Valuation Given By Your Landlord
You can ask your landlord for a re-valuation of the property by the District Valuer, whose decision will be final (even if the re-valuation is higher than the landlord’s valuation). If you wish to make an appeal, you will need to ask for a re-valuation within three months of receiving the purchase price details from your landlord. Once the property is re-valued, your landlord will send you a revised offer notice which will give you the new valuation agreed by the District Valuer.
Types Of Property Your Landlord May Own Which Cannot Be Bought With The Right To Acquire
All properties built or purchased with public funds or transferred by a local authority before 1 April 1997 are not subject to the Right to Acquire. There are also some types of property built, purchased or provided after 1 April 1997 which are also exempt from the Right to Acquire. The main types are listed below: Properties in certain rural areas containing settlements where the population is 3,000 or fewer Properties where the landlord is a co-operative housing association Properties where the landlord does not have sufficient legal interest to be able to grant a lease exceeding 21 years for a house or 50 years for a flat Tied accommodation occupied because the tenant is employed by the registered social landlord or other social landlords A home that is one of a group of homes designed with special features for letting to people with physical disabilities A home that is one of a group of homes let to tenants who are suffering or have suffered from a mental disorder where social services or other special facilities are provided A home that is one of a group of homes let to tenants who have special needs and require intensive housing support A home that is one of a group of homes particularly suitable for elderly people and was let to a person aged 60 or over Properties held on Crown tenancies A property which is valued at or below the landlord’s loan for that property. Your landlord has published its intention to demolish the property you currently occupy within 5 years or served a notice that it intends to demolish within 2 years There may be other properties which are exempt and your landlord will be able to tell you whether your property qualifies when responding to your application.
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Sharing Your Right To Acquire With Others
If you are a joint tenant you will normally be buying with the other tenant. You may also include up to three members of your family provided that they live with you and each of them has been at your address for the 12 months before you made your claim. Your landlord may allow you to include family members who have not lived with you for the full twelve-month period.
Selling Your Property After Purchasing With The Right To Acquire
You may sell your property whenever you wish, in just the same way as other homeowners. However if you applied to purchase your property on or after 18 January 2005 and sell within the five years from the date of purchase you should anticipate repaying an amount representing the value of the discount you received. The calculation of repayment takes into account any change in the valuation of the property since you purchased it, together with the length of time since the property was purchased. If sold within a year, 100% is repayable If sold within 2 years, 80% is repayable If sold within 3 years, 60% is repayable If sold within 4 years, 40% is repayable If sold within 5 years, 20 % is repayable No repayment is required after 5 complete years Example If your property is valued at £80,000 at purchase and you receive a discount of £16,000, the discount represents 20% of the property value. If when you come to sell, the property is valued at £100,000, the ‘discount’ repayment will be £100,000 x 20% = £20,000. If you are selling within three years from the date you purchased the amount to be repaid will be £20,000 x 60% = £12,000. Should you decide to sell the property at any time within the first 10 years from the date of purchase you will be required to offer the property to your former landlord (or their nominated agent) to buy at the current market value first – this is known as the Right of First Refusal. If your former landlord does not wish to purchase the property you are then free to sell it on the open market.
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