How Much Discount will I get
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Castle Point Plan Consultation
We’ve set out a bold, community-led strategy for sustainable growth across the Borough. The Castle Point Plan will set out where new development will be allocated, how much affordable housing will be built and more up to 2043.
How Much Discount will I get?
You must have been a tenant in qualifying accommodation for a period of 3 years to be able to buy your home. This will entitle you to a basic discount of 35% for houses and 50% for flats. After the initial 5 year qualifying period you get additional discount for each extra year.
If you are buying a house, you will get 1% more discount for each extra year up to a limit of 70%. If you are buying a flat, you will get 2% more discount for each extra year up to a limit of 70%.
Subject to the current maximum discount set by National Government of £34,000 for our region.
| Qualifying Period in Years | House % | House Discount | Flat % | Flat Discount |
|---|---|---|---|---|
|
5 |
35% | £42,000 | 50% | £60,000 |
| 10 | 40% | £48,000 | 60% | £72,000 |
| 15 | 45% | £54,000 | 70% | Max £84,000 |
| 20 | 50% | £60,000 | 70% | Max £84,000 |
| 25 | 55% | £66,000 | 70% | Max £84,000 |
| 30 | 60% | £72,000 | 70% | Max £84,000 |
| 35 | 65% | £78,000 | 70% | Max £84,000 |
| 40 | 70% | £84,000 | 70% | Max £84,000 |
Your discount may be reduced by a rule called the "cost floor". If your home has been purchased or built by the council or money has been spent repairing or maintaining it during the last 30 years the total of these costs will create a "cost floor" Where the cost floor is higher than the sale price or higher than the market value, the discount amount is adjusted to reflect this.
Paying back your discount
You will have to pay back some or all of the discount you received, if you sell your Right to Buy home within 5 years of buying it.
You will have to pay back all of the discount if you sell within the first year. After that, the total amount you 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 you pay back depends on the value of your home when you sell it.
Example You bought your home worth £100,000 and got a 40% discount (£40,000). You then sold your home after 18 months for £120,000.
40% of £120,000 is £48,000. As you are in the second year, you would repay 80% of £48,000 (£38,400).