If you sell your home within the first 5 years of buying it from us, you will have to repay some or all of the discount. If you sell your home for more than your bought it within this time, you may have to repay a share of any profit as well.
How much will I have to repay?
| If you sell in the... | you will repay... |
| First year after buying | All of the discount plus a share of any profit |
| Second year after buying | Four fifths (80%) of the discount plus a share of any profit |
| Third year after buying | Three fifths (60%) of the discount plus a share of any profit |
| Fourth year after buying | Two fifths (40%) of the discount plus a share of any profit |
| Fifth year after buying | One fifth (20%) of the discount plus a share of any profit |
For Example
For example, if your home was valued at £100,000 when you bought it and you received £30,000 discount, that means that you received a 30% discount.
If you then decide to sell your house at £150,000, 30% of the sale price is £45,000. The amount you would have to pay back in this example is:
| If you sell in the. | You will have to repay |
| First year after buying | £45,000 (5/5 of 30% of the sale price) |
| Second year after buying | £36,000 (4/5 of 30% of the sale price) |
| Third year after buying | £27,000 (3/3 of 30% of the sale price) |
| Fourth year after buying | £18,000 (2/5 of 30% of the sale price) |
| Fifth year after buying | £9,000 (1/5 of 30% of the sale price) |
Restrictions on re-selling your home
Ex-council homes in certain areas, such as Areas of Outstanding Natural Beauty, National Parks and designated rural areas (including Kerrier, Carrick, Caradon and North Cornwall), may be subject to special restrictions affecting who you can sell or let them to. This applies to you even if you are not the original buyer and will apply to anyone who buys the property after you.
These restrictions were introduced by the Housing Act 1985 and were designed to prevent homes in rural areas being sold on as holiday homes or second homes to people without a connection to the area. Alternatively, your home may be subject to a different type of restriction requiring you to offer your home for sale to us before offering it for sale on the open market (a right of pre-emption). These restrictions apply only to homes that were originally sold at a discount under the Right to Buy or Right to Acquire scheme. They do not apply to properties that have been offered for sale by the Council, Kerrier Homes Trust or Coastline Housing Ltd on the open market without a discount.
You should check with your solicitor to see if either of these restrictions affects your home before advertising your home for sale. Your estate agent will need to know if there are any conditions that potential buyers have to meet. If you try to ignore these restrictions, your sale could fall through when the buyer's solicitor discovers them, causing you both unnecessary disappointment and expense.
Restrictions of this kind will normally say that buyers or tenants have to be approved in writing by Coastline Housing Ltd. Sales made without our approval may be legally void. Before we give our approval, you will need to prove that your buyer, tenant or licensee meets the following conditions:
Throughout the period of three years immediately preceding the application for consent they must have either:
a. had his/her place of work in Cornwall; or
b. had his/her only or principal home in Cornwall.
The three year qualifying period can be made up of a combination of time in residence and work anywhere in Cornwall. If more than one person is buying, only one of them has to meet these conditions.
Completing your sale
When you complete your sale, we will need to know the names of the new owners so that you do not continue to receive service charge bills from us and so that we can provide the new owners with information. It may be a condition of your lease that you or your solicitor tells us the identity of the buyer when you sell or let the property.
We also ask that you remember to pass on your leaseholder handbook to the new owner. They will need to know how to contact us and pay their service charge and about their rights and responsibilities as one of our leasehold customers.
