Right to Buy Purchases

Information and how to apply can be found on the Right to Buy page using the following link: https://www.ashford.gov.uk/housing/council-tenant/existing-council-tenants/right-to-buy/

The Estimated Service Charged document is enclosed at point the applicant receives their Section 125 Offer Notice. If you require a copy, please contact us on: leaseholdandrtb@ashford.gov.uk

The Estimated Service Charges cover the first full 5 years of the lease, during completion the Council will calculate the actual start and end date as this depends on when your offer was produced and the completion date, which is considered the start of the lease.

The Estimated Service Charges will always include:

• Building Insurance

• Management Fee

Depending on the property type (if there is a communal area) it may also include:

• Provision of cleaning to communal areas

• Electricity charges in respect of common facilities and lighting

• Maintenance of common facilities and areas including lifts, access roads, passageways, pipes and cables, parking areas, grounds, door entry systems, TV reception facilities and provision of Janitor.

Additionally, we may provide a list of planned works or improvements, these works will not include internal maintenance of your home but instead focus on structural works for the building and any communal areas.

We look at the current cost for services and maintenance. Once the accounting period commences, we will adjust these figures each subsequent tax year to allow for the cost of inflation up until the end of the accounting period.

For Building Insurance, we will produce a letter after the sale has completed as well as receiving a completed Buildings Insurance Proposal form from you. This letter outlines your Building Insurance premiums to pay and will include a Certificate of Insurance and a Summary of Cover document, as set out from our Building Insurance provider.

For Service Charges, we will produce a Calculation of Service charge statement, service charges are calculated for the duration they relate to for the current tax year, but the final statements & demand that explains a cost break down and payment are produced the following tax year. This is because the actual costs are only fully known after the tax year the charges relate to have ended. We produce quarterly estimates up to the final demand being produced to allow time to budget in anticipation of the final demand.

For Planned Works, we will produce a Notice of Intention that will describe the proposed works and explain the reasons why the works are needed. We will only be able to recharge planned works if they have been included in the Estimated Service Charges document. The Notice of Intention is the first stage of a process known as a Section 20 Consultation, further information concerning this process can be found using the following link:

https://www.lease-advice.org/advice-guide/section-20-consultation-council-other-public-sector-landlords/

Leasehold Services will write out when payment is due and include the methods of payment. These methods include bank transfer, online payment or via the automated payment line.

It is important to review your estimated service charges once received which are included with your Right to Buy offer notice. If you have any enquires at this stage, we encourage you get in touch with us.

If proceeding with the purchase of the property you are legally accepting the terms and conditions of the lease agreement and subsequent associated costs for the estimated service charges.

We recognise there may be times when there is financial difficulty, in those instances we will discuss with leaseholders their financial situation in more detail. We may request an income & expenditure form is completed and will discuss what options are available for assistance. It is important to contact Leasehold Services as soon as possible if there is difficulty in making a payment. We take arrears of Service Charges very seriously and we expect all leaseholders to pay the charges promptly as this is a condition of the lease agreement.

We have a robust recovery process that we must adhere to if there are arrears and non-engagement. The final stages can lead to losing the leased property by forfeiture or repossession. We don’t want it to get to this stage so please talk to us or a debt advice service such as Citizens’ Advice Bureau.

Leaseholders who have purchased their leased property can apply for a loan with the Council to help towards the costs for Service Charges, or the cost of covering improvements carried out by the Council. The leaseholder does not have to be the person who originally purchased the property under the Right to Buy scheme, but it must be requested with the Council who sold the property. Leaseholders will be required to make monthly payments to the Council over the specified agreed time and the payments will also include interest. The following criteria applies:

• Right to Buy Purchase

• Costs towards Service Charges & repair improvements

• Applied within 10 years from the date the property was sold under the Right to Buy scheme, or on a date specified by the Council. This date can be no later than 6 months after the Council has sent the Right to Buy offer notice.

• Service Charge has reached £1,500 or more in one accounting period. The accounting period is the annual period for which charges are payable under the lease, or a period of twelve months beginning from the date the property was purchased, example:

£7,000 balance made up of £2,500 for repairs, £4,000 for improvements and £500.00 for maintenance. The maximum loan amount that can be granted is £5,500, £7,000 minus the £1,500 minimum threshold.

To request or discuss a loan, please contact us on leaseholdandrtb@ashford.gov.uk. We will confirm eligibility, and if approved the loan term, borrowing amount and interest rates.

If selling after 5 years from the purchase completion date you will not be asked to pay the Right to Buy discount. However, if selling within the 5 year discount period, the homeowner will be asked to repay a portion of the discount back to the Council. This principle applies to leasehold and freehold properties.

The homeowner will have to pay back all of the discount if sold within the first year. After that, the total amount to pay back reduces to:

• 80% of the discount in the second year

• 60% of the discount in the third year

• 40% of the discount in the fourth year

• 20% of the discount in the fifth year

The amount to pay back depends on the value of the home once sold.