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Cambridge City Council

Selling the property you bought under Right to Buy

Repaying your discount

If you sell your property within the first five years of purchasing through the right to buy scheme, you will have to repay some or all of your discount.

A sale in the first year will result in 100% of the discount being repayable. This reduces by 20% for each full year of ownership, so that a sale during the fifth year of ownership results in only 20% of the discount being repayable.

The discount repayable is based on a percentage of the open market value of the property at the time of sale - the owner's improvements are disregarded.

If a tenant buys a property valued at £180,000 and receives a discount of £75,000, their discount in percentage terms is 41.67%.

Therefore, if a sale takes place in the first year of ownership, 41.67% of the market value of the property must be paid to the council.

If a sale takes place in the fifth year of ownership 20% of 41.67% of the property's open market value must be repaid:

  • Sale of house in fifth year of ownership market value £250,000
  • Market value on original sale £180,000
  • Discount on original sale £75,000
  • Discount on original sale as a percentage of open market value 41.67%

Repayable discount

  • Current market value - £250,000
  • % Discount on original sale - 41.67%
  • Original % discount on current market value - £104,175
  • Repayable during fifth year - 20%
  • Repayable Discount - £20,835

Right of first refusal

If you purchased your home under the right to buy scheme on or after 18 January 2005, and you wish to sell or dispose of it within the first ten years, you must first offer it back to us to purchase at the full market value.

The market value must be agreed between the parties or, if they are unable to agree, will be determined by the district valuer.

If we do not wish to purchase the property back from you, you are then free to sell the property in the open market.