You can sell your home whenever you like but you may have to pay back some of the discount you received when you bought the property.
If you apply for RTB on or after 18 January 2005, and sell within five years of buying it, you will have to repay some or all of the discount that you received. If you sell:
- during the first year, all of the discount must be repaid
- during the second year, four fifths must be repaid
- during the third year, three fifths must be repaid
- during the fourth year, two fifths must be repaid
- during the fifth year, one fifth must be repaid
The repayment of discount will be a percentage of the market value of the property when it is resold within the first five years of purchase. After five years you can sell without having to repay any discount.
Right of first refusal
If you bought your home under the RTB scheme on or after 18 January 2005 and you want to sell it within 10 years you will have to offer it, at full market value, to either :
- your former landlord, or
- to another social landlord in your area
The market value must be agreed between the parties. If they cannot agree it will be decided by the District Valuer (we will pay for the cost of this).
If your offer has not been accepted within 8 weeks you will be free to sell your home on the open market.
Also, from 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 that the ownership of the property is transferred).