Beware of other Right to Buy companies

In the past, Your Homes Newcastle and Newcastle City Council have become very concerned about the methods of some private companies operating in your area which offer assistance with the Right to Buy.  These companies do not represent Your Homes Newcastle or Newcastle City Council.

You are of course free to deal with such companies if you wish, but we have received a number of complaints from tenants about some of them, and feel we should bring this to your attention.

Tenants are normally contacted in person by door-to-door representatives from private companies offering to help them buy their Council homes.  They may offer a mortgage, legal services or an “all-in” package that may include improvements to your home after you buy.

By signing documents you have not read properly, you may be entering into a legal agreement in which you may have to pay the company thousands of pounds.

If you are approached by a person or company offering to help you buy your home, ask for identification, check out what’s in it for them and feel free to talk to us before signing up to any deal.

Think about the costs involved

Owning your own home can be expensive and only you can know if buying your own home would be the right decision for you.  If you want more advice, you can contact Your Homes Newcastle, a Citizen's Advice Bureau or a solicitor – though a solicitor may make a charge for this.

Flats and maisonettes

These cannot be sold freehold but the long-term lease can be bought for a fixed period (usually 125 years) with an annual ground rent of £10.  
 
Leaseholders must pay service charges for the upkeep of the structure and communal areas of the building.  These costs may be very high and run into thousands of pounds, or you may have difficulties in selling your property at a later date.  As well as major repairs and improvements, service charges also cover things like staircase lighting, caretaking, decorating, lift maintenance and door entry systems. 
 
If you decide to buy your flat or maisonette, Your Homes Newcastle will give you an estimate of what the annual service charges will be and also costs of any possible planned improvement works for the first 5 years of your lease.

Mortgages

As well as the initial purchase price there are numerous other costs to consider when buying your home.  Firstly, unless you are buying your home with cash, you will need a mortgage, which will have to be repaid with interest.  There are an almost endless number of different mortgage packages available and you should think carefully about which would be the right one for you.  For advice on mortgages you can visit any bank, building society or financial advisor.  If you cannot keep up the repayments on your mortgage your lender may go to court to apply to take over your home.  The Council is not obliged to offer you another tenancy if you lose your home in this way.

One off costs

There are also several one-off costs normally incurred during the purchase of a property which would be your responsibility:

• A solicitor or licensed conveyancer to look after the legal side of the purchase
• A property survey
• Most banks and building societies charge for arranging a mortgage, and also for the valuation of the property that they are obliged to carry out
• Once the sale is complete you must register with the Land Registry as the new owner of the property
• Stamp duty has to be paid on any property purchases costing more than £120,000 – this is 1% of the purchase price.

Other commitments

In addition to a mortgage, there are also many other regular costs which home owners normally have to pay:

• Water rates
• Council tax
• Buildings insurance
• Contents insurance
• Repair and maintenance costs.