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Repaying right to buy discount

If you sell your home within the first five years of owning it, you will have to pay money back to the council. The amount you have to pay back will be a percentage of the amount you sell the property for, less the value of any improvements you have made.

The percentage will depend on the amount of discount you received when you bought your home and how soon you sell it.

After five years, you can sell your home without having to pay back any money.

For example:

If your home was valued at £250,000 when you bought it under the Right to Buy, and you received a discount of £100,000, this means your discount was 40% of the market value

  • If the market value of your home at the time you sell it is £300,000, then 40% of this is £120,000
  • If you sell your home in the discount repayment period (the first five years of owning it), you will have to pay the council back 20% of £120,000 for each year or part year left in the discount repayment period.
Year  Discount you must repay Amount you must repay (in this example)
 1  100%  £120,000
 2  80%  £96,000
 3  60%  £72,000
 4  40%  £48,000
 5  20%  £24,000




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