Discounted For Sale

 

Local Authorities give planning permission to private developers and set a restriction, so some of the properties have to be sold at a discount from the open market value, this is known as a 'section 106 agreement'. The private developer sells the discounted properties to a housing association and the housing association sells them on to those who fit the criteria.

 

 

The discount can be from 25% to 50% from the open market value, the amount is determined by the Local Authority.

 

 

The criteria is different for each scheme and is is usually set by the Local Authority. The first priority is normally for those who live or work in the immediate area,  but not always. If you are able to buy on the open market without help then you would not qualify. For example if your annual household income is more than £40,000 or if you have a deposit which is more than 15% of the value of the property we would need to know why you are applying for affordable housing.

 

 

Look on the property seach page for the available discounted sale homes in your town. My4walls does not always have information on all these properties so you may want to contact any Housing Associations in your area and ask if you can register with them.

 

 

The original discount is passed on to the next person, so if you bought the property with a 25% discount you can only sell the property at 75% of the open market value. The Housing Association who sold you the property have 12 weeks to find a buyer before you can market the property with an Estate Agent, so you need to tell the Housing Association that you wish to sell first.

 

 

No, there is no rent to pay as you would own the property 100%. With discounted sale the property can only ever be sold at the set % of the open market value which means that the property will always be an affordable home.