If you want to sell your property within the first 10 years of ownership, you must offer it back to us first.
If you sell your property within five years of buying your home from us, you will normally have to pay us a percentage of the resale value.
This valuation does not include the value of any improvements you made after you purchased the property from us. The amount you will have to repay will be determined by the discount your received when you bought your property, expressed as a percentage of the value on which the sale was based.
For example, if the Right to Buy valuation was £150,000 and the discount was £60,000, the discount expressed as a percentage of the value is 40 per cent. If you sell your property within the first year for a price of £175,000 (without the price being increased by improvements), the maximum we can require you to repay is 40 per cent of that amount, being £70,000.
After every full year you own your home, the amount of discount you must repay decreases by one-fifth. So if in the above example you were selling your property three years after purchase, the amount of discount you would be expected to repay would be two-fifths of 40 per cent, or 16 per cent of £175,000 (£28,000).
The value of your home can go down as well as up.
For each complete year which has elapsed after the sale, the maximum amount you will have to repay is reduced by one-fifth. For example four fifths in the second year, three-fifths in the third year, two-fifths in the fourth year and one-fifth in the fifth year.