• How much discount am I entitled to?

    Your discount depends on the number of years you have been a tenant for and on the valuation of your property.

    This may include time spent in different homes and/or with different landlords.

    If you lived with your parents after the age of sixteen and later became a tenant of the same home, you may be able to include that time as well. If you are buying jointly with someone who has a longer qualifying period than yours, you will be entitled to their higher rate of discount but you cannot 'add together' separate qualifying periods.

  • What are the levels of discount available for buying a house?

     
    3 years 35% discount
    4 years 35% discount
    5 years 35% discount
    6 years plus add 1% per year for houses (up to 70% or the cash maximum of £82,800 – whichever is lower)
  • What are the levels of discount available for buying a flat or maisonette?

    3 years - 50% discount

    4 years – 50% discount

    5 years – 50% discount

    6 years plus – add 2% per year for flats (up to 70% or the cash maximum of £82,800 – whichever is lower)

  • Are there any limits on the level of discount I will receive?

    The maximum cash discount is reviewed on an annual basis in line with the Consumer Price Index (CPI).

    The government has announced that the maximum cash discount will be set at £82,800 for all applications received after 6 April 2019.

  • What else affects the discount?

    The discount you receive may be reduced if the amount of money we have spent on your home in the last 10 years is more than the purchase price of your home. This is called the cost floor. We cannot sell you your home for less than the cost floor amount.

    If you have previously bought a property under the Right to Buy scheme, then the discount you received for that property will be taken off the discount on your current Right to Buy purchase.

  • Costs of buying your home

    Owning your home can be expensive and the information below gives you an idea of what costs could be involved and the difference between renting and owning your own home.

    We would recommend that you seek your own independent financial advice before proceeding with the purchase of your home.

  • Do I need a mortgage to purchase my home?

    Unless you are buying your home with cash, you will need a mortgage to cover the cost of the initial purchase price, which will have to be repaid with interest.

    There are many different mortgages available and you should think carefully about which one would be right for you.

    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. For advice on mortgages you can visit any bank, building society or financial advisor.

    You can also get free advice from The Money Advice Service  who provide a lot of useful information about different mortgages that are available to help you choose the right one as well as providing general financial advice to anyone who needs it.

  • One off costs

    There are also several one-off costs associated with purchasing a property which you will need to pay:

    •  Solicitor or licensed conveyancer fees - they will look after the legal side of your purchase. You can find out more information about finding a solicitor and how the legal side of your purchase will work from The Law Society
    • 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 completes it must be registered with the Land Registry – your Solicitor would normally do this
    • Stamp duty of 1% of the purchase price has to be paid on any property purchases more than £125,001
  • What other finacial commitments would I have?

    There are other costs which home owners have to pay once they own their property which include the following:

    • Water rates 
    • Council tax
    • Buildings insurance
    • Contents insurance  
    • Repair and maintenance costs
  • What is the difference between buying and renting my home?

     RentingBuying
    Housing costs Your Homes Newcastle are committed to keeping rents affordable Mortgage payments can be higher than renting and can change depending on the type of mortgage you have chosen and interest rates.
     InsuranceYour buildings insurance is included in the rent that you pay

    You will have to organise your own contents insurance or you can choose to have your contents insurance through the home contents insurance scheme that is arranged by Newcastle City Council.
    If you are buying a house or bungalow you will need to arrange your own buildings and contents insurance.

    If you are buying a flat or maisonette you must have your buildings insurance with Newcastle City Councils chosen insurer and this is included in the service charge that you pay.

    You will have to organise your own contents insurance or you can choose to have your contents insurance through the home contents insurance scheme that is arranged by Newcastle City Council.
    Housing benefit If you are on Income Support or on a low income you can claim housing benefit which may help towards paying your rent.If you buy your home you will not get housing benefit. Even if you are on income support you will not get any help toward the cost of the mortgage repayments. If you have been receiving income support for thirteen weeks you may qualify for help but only toward the interest on the mortgage.
     Repairs The cost of repairs and maintenance is covered by your rentYou are responsible for the cost of repairs and maintenance to your home which can be expensive.

    If you buy a flat or maisonette you will be charged a share of the costs of any works done to the structure of the building or communal areas of the block which we remain responsible for. These can be high and you must pay them.