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Further
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Surviving Corporate Politics Part 2: Keeping Up Appearances - Gary Whittaker
Never a 2nd chance to make a 1st impression, or so the saying goes. We all know that when someone is introduced into your work environment for the first time, their peers size them up immediately. How they are dressed, how they talk, and how they...
Master the Art of Communication. Part 1 of 2- Using Your Passion To Make A Connection - Carole Nicolaides
by Carole Nicolaides © 2002 All Rights Reserved http://www.progressiveleadership.com One skill that we should all develop further is effective communication. Communicating clearly to your employees, co-workers, friends, and family is a critical...
"Building your Business for Success in 2002." - Paul Barrs
"Building your Business for Success in 2002." By Paul Barrs. (c) 2001 It's a strange anomaly. Most people who set out to start their own business, no matter what type, build it for failure, not success. Crazy isn't it? But true. The...
Why I'll Never Make Millions Of Dollars On The Internet... - Adam Buhler
Dont get me wrong, I make a decent living online. I have a passion for what I do, and my hard work has paid respectable dividends, both to me, and to my visitors. The sad part is that what got me interested in making a living online just so...
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Housing Bill - Changes in the Right To Buy Scheme
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Written By:
Nicola Bullimore
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Presently council tenants are able to purchase their rented property after 2 years of tenancy. However, this is about to change. As of the 18th January 2005, the new Housing Bill becomes law and the current 2 years will change to a period of 5 years. This means, that once the proposals come into force, any new council tenant will have to wait 5 years before having the option of buying their property.
There is also a proposal to extend the period during which landlords can require owners to repay some or all, of the discount given on a property in the case of an early resale.
Currently, purchasers of a property that has been bought on the right to buy scheme, can sell after 3 years with no requirement to make any repayments of the discount. The proposal suggests this should be extended to 5 years. Therefore, anyone who sells a property bought under the right to buy scheme within 5 years of the purchase, will be requested to repay a percentage of the given discount. Repayment figures are as follows: -
Currently
- Sale within the 1st year 100%
- Sale within the 2nd year 66%
- Sale within the 3rd year 33%
Proposal amounts
- Sale within the 1st year 100%
- Sale within the 2nd year - 80%
- Sale within the 3rd year - 60%
- Sale within the 4th year - 40%
- Sale within the 5th year 20%
With the predicted drop in house prices in 2005 (meaning lower property valuations) combined with the new proposals further restrictions on council tenants wishing to purchase, now may be a good time to consider a right to buy.
The proposed changes in the right to buy scheme include measures to reduce the attraction of purchasing a discounted property with the prospect of selling it to make a profit.
The initial idea of the right to buy scheme was to give ordinary families the opportunity to own their own homes, something they may not have been able to afford otherwise. However there are concerns about the - continued below ...
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effects this has had on local housing stock and a number of people profiteering from potential windfalls in expensive property areas.
Exploitation in the Right to Buy Scheme
There have been several schemes where third party companies encourage tenants to purchase their homes under the right to buy scheme, by offering them cash incentives. The tenant purchases the property at a discounted price under the right to buy scheme and simultaneously exchanges contracts to sell the property to the company after 3 years at which point no discount penalty will be repayable. The tenant will lease the property to the company and move out of the home with a cash sum. This leaves the company free to rent out the property at the current market rental rates.
After three years the tenant sells the property to the company. The company will either continue to rent the property at market rates or the property will be sold on at a substantial profit.
The incentive for the tenant is the lump sum offered, which can be anywhere from £5000 to £26000 but is usually a percentage of the equity of the purchased property. This could be attractive to tenants who do not wish to purchase their current home or hope to purchase a property in another area as it will give them a ready made deposit to buy another home.
The new proposals are designed to make this type of sale less attractive and prevent profiteering as well as securing local housing for the less well off.
The proposed changes in section 180 and 182-189 of the Housing Act 2004 will come into effect on 18/1/2005.
For more information on a right to buy mortgage, visit Right To Buy( http://www.right-2-buy.co.uk ) website.
Nicola Bullimore has been working with people regarding financial difficulties for a number of years. For more information regarding debt issues, please visit Debt Questions. http://www.debtquestions.co.uk
nicky.bullimore@landingnet.co.uk
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Creating A Business That Brings You Joy - Maria Marsala
You just won the lottery and in order to receive your check, you must have a full time job. What would you be doing? Would it be what you are doing now? If not, ask yourself why. Do you just need to add a little fun to your career or business, or is...
The Entrepreneur's Toolbox - Claudette Rowley
You have permission to publish this article electronically or in print as long as the resource box is included. Please notify me of publication by sending a website link or copy of your publication to claudette@metavoice.org. Word Count: 771 words,...
Is It Time To Hang Up On Investments In Wireless? - Sam Subramanian
During the go-go days of the late 90s, capital was cheap and wireless service providers invested heavily amid ever increasing projections for wireless subscribers. Then the bottom fell off. Brutal price competition and the resulting customer churn...
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