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Right to Acquire next steps
You could be eligible to buy your home at a discount.
What happens next?
We think you may qualify for the Right to Acquire (RTA) scheme.
The scheme allows eligible Home Group tenants to buy their home with a discount.
We know buying a home can be overwhelming. The following steps will help you to check your eligibility, complete your application, and understand the purchase process.
Find out what the Right to Acquire discount is in your area.
Eligibility
It's likely you're eligible for Right to Acquire if:
- You’re a housing association tenant with an assured tenancy
- You’ve been a public sector tenant for at least three years
- The property was built or funded by a public sector landlord after 1997
Important exclusions:
- Certain properties: sheltered housing or adapted/ built homes designated for elderly or disabled people
- Tenants with rent arrears and or anti-social behaviour order
We will confirm your eligibility, if you are unsure contact us.
Apply for Right to Acquire
Once you have read and understood the Right to Acquire process download this form, fill it out (on desktop or print it out), and send it back to us.
Apply for Right to Acquire
Step one: submit your Right to Acquire form
Fill out the Right to Acquire form. Submit it along with all additional documents requested. You can email it to us, or post it to us at Tenant Sales Home Group, One Strawberry Lane, Newcastle upon Tyne, NE1 4BX.
Note: if you are filling out this form online, you will need to download it to a desktop.
Contact us if you need any assistance.
Step two: financial check
You must next contact The Mortgage People (TMP). They will provide you with the estimated value of your home, the possible discount and carry out a financial assessment.
A financial assessment is a requirement of the application process, and the valuation inspection will not be carried out until your assessment with TMP has been confirmed.
You need to give TMP your unique property reference number. If you don't already have this, get in touch with us.
Step three: receive application response
We will either approve or deny your application within four to eight weeks:
- Four weeks if Home Group has been your landlord for three plus years
- Eight weeks if confirmation from a previous landlord is required
If approved, be ready for the property valuation inspection.
Step four: property valuation inspection
A valuation inspection will be arranged to assess your property’s market value. You will need to be present for this, or allow access to your home.
Timing: Usually within two to three weeks of approval notification
Purpose: Determines the purchase price and discount calculation
Step five: receive and review offer notice (S125)
Receive S125 Notice: sent within 8-12 weeks after application approval, depending on property type.
This document will include the property’s valuation, your discount amount, and terms of purchase.
Review this carefully: understand the purchase price, discount, and terms.
Decide whether to accept the offer or request a valuation review/adjustment within 12 weeks.
Step six: accept of request valuation adjustment
Accept, or request valuation adjustment. You need to respond within 12 weeks.
Let us know if you accept the terms, or if you’d like a district valuer to reassess. Please note this may cause a delay.
Then, instruct your chosen solicitor to commence conveyance and complete the final steps to purchase.
Frequently asked questions
Can you help me fill in the form?
We've provided guidance notes and a completed form as an example in the PDF download. If you have any queries though, please do not hesitate to get in touch.
Is there a cost to apply?
No, we do not charge you to apply. However there will be costs involved if you accept our offer, e.g solicitor/survey fees etc
Will I need a deposit?
Some lenders (bank/mortgage provider) will take the discount as a deposit.
Can I buy with members of my family?
Yes! Up to three family members can share the Right to Acquire, even if they are not a tenant. The property must have been their main home for the last year. This is unless they are your spouse, who may share the Right to Acquire with you if the property is their main home. A cohabiting partner is regarded as a family member.
Can someone else buy my home for me?
Someone could gift or loan you the funds to buy. However, they won’t legally own the property: the property will be in the name of the eligible tenant(s) and other eligible applicants regardless of who funds the purchase.
My kitchen/bathroom is due to be replaced soon. Will that still happen?
We won’t carry out improvement works or routine repairs whilst your Right to Acquire application is active, as this will affect the price of the property.
Will you still carry out repairs?
We will only undertake emergency repairs whilst your Right to Acquire application is active. This includes things like fixing the toilet, repairing a leaking roof or securing the property if necessary. Any issues should be reported to our customer service centre as usual.
I have made improvements to the property, will this increase the value?
Not necessarily. You can read about improvements on page 10 of the download.
What does redetermination mean?
If you disagree with the value of the property stated in our offer, you are entitled to a free valuation by the 'District Valuer' (the specialist property arm of the Valuation Office Agency). Their new valuation is binding on you and us - even if the valuation is higher than the original valuation.
Can I withdraw my application?
You can withdraw your application at any time up until the purchase is complete. Just give us a call or drop us an email to let us know.
Do I have to repay the discount if I buy the property and then sell it?
If you sell your home in the first five years, you’ll have to pay back some (or all) of the discount. This also applies if you are transferring ownership to somebody else.
If you sell in the first year, you’ll have to pay back all of the discount. But the amount you pay back depends on the value of your home when you sell it. So, if you got a 10% discount, you’ll have to pay back 10% of the sale price.
If you sell after the first year, the amount you pay back reduces:
- 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
For example: Through the Right to Acquire scheme, John bought his home worth £100,000 for £90,000 (i.e. with a 10% discount). He sold his home for £120,000 after 18 months. As John was in the second year, he repaid £9,600*.
*10% of £120,000 is £12,000. 80% of £12,000 is £9,600.
If you sell your home within 10 years of buying it through the Right to Acquire scheme, you must first offer it back to us.