Selling Your Right to Buy Property

Selling Restrictions

The Repayment Rules

❌ Common Myth Once you buy your home through Right to Buy, you can sell it immediately with no financial consequences.

✓ The Reality You can sell at any time, but selling within five years means repaying part or all of the discount you received. The repayment reduces year by year and disappears entirely after year five.

Owning your home through Right to Buy gives you the same rights as any other homeowner. You can sell, remortgage, or leave the property to family. The key things to understand are the discount repayment rules that apply in the first five years of ownership, and whether any nomination period applies in your area.

Your Rights and Restrictions as an RTB Owner

There are three main areas to understand when thinking about what happens after your Right to Buy purchase:

Discount Rules

The Nomination Period

In certain areas, your title deeds or local authority conditions may include a nomination clause. This means that during the first ten years of ownership, if you decide to sell, you must first offer the property back to your former landlord at the current open market value. The council has eight weeks to decide whether to take up the offer. If they decline, or do not respond within that window, you are free to sell to any buyer on the open market at that price. Not all RTB purchases include a nomination period. Check your original sale documentation or ask your solicitor to confirm what applies to your property.

Discount Rules

Discount Repayment

If you sell your Right to Buy home within five years of completing the purchase, you will be required to repay a proportion of the discount you received. The repayment amount is calculated as a percentage of the current open market value at the time of sale, not the original purchase price. This means that if property values have risen significantly since you bought, the actual repayment figure could exceed the original discount amount. Your solicitor will calculate the exact figure at the point of sale and ensure it is settled through the conveyancing process. After five complete years of ownership, no repayment is required and you are free to sell at any price without restriction.

Discount Rules

Open Market Sale

Once you have satisfied any nomination period and the five-year discount repayment window has passed, you can sell your property on the open market exactly like any other homeowner. There are no restrictions on who you sell to, what price you accept, or which estate agent you use. If you have a mortgage on the property, the sale proceeds will first repay the outstanding balance. Any remaining equity is yours to use as you wish, whether that is buying your next home, downsizing, or moving to a rental. Alternatively, if you plan to stay in the property, you may wish to remortgage to release equity for home improvements or other purposes. Our advisers can help with this at any stage.

Start early: The discount repayment rules and nomination periods are often misunderstood. Speak to one of our advisers before marketing your property so we can confirm exactly what applies to you and how it affects your sale timeline.

After Completion

What Happens When You Want to Move On?

Whether your circumstances change, you want to upsize, or you are simply ready for something new, your options as an RTB homeowner are broadly the same as any other owner-occupier. The key considerations to factor in include:

Year 1: 100% of the discount must be repaid

Year 2: 80% of the discount must be repaid

Year 3: 60% of the discount must be repaid

Year 4: 40% of the discount must be repaid

Year 5: 20% of the discount must be repaid

After Year 5: No repayment required

Repayment is based on current market value, not the original discounted purchase price

Any repayment is settled through your solicitor as part of the conveyancing process

Remortgaging Your Right to Buy Home

Many RTB homeowners choose to remortgage a few years after their purchase, either to move to a more competitive deal as their initial rate expires, or to release equity built up through mortgage repayments and property value growth. Because you purchased at below market value, your loan-to-value ratio may already be favourable from day one, which can open up better mortgage rates than you might expect. Our advisers can review your existing mortgage and explore whether switching or releasing equity makes sense for your situation. If you are purchasing jointly, keep in mind that both applicants will need to agree to any remortgage or sale.

Check the current value of your home: Before remortgaging or selling, it is worth obtaining an up-to-date valuation. For remortgage purposes, the lender will instruct their own valuer, but knowing the approximate figure in advance helps you understand how much equity you have and what products may be available to you.

Using a Specialist Right to Buy Broker

Not all mortgage advisers have experience with Right to Buy transactions. A specialist broker understands the nuances of using your RTB discount as a deposit, how lenders assess eligibility, the documentation required, and how to handle the sale or remortgage of an RTB property down the line. At Alexander Southwell Mortgages, we have helped many council tenants complete their Right to Buy purchase and continue to support them as their mortgage needs evolve.

Selling Your RTB Property & What Comes After

The Repayment Rules

Your Rights and Restrictions as an RTB Owner

What Happens When You Want to Move On?

Remortgaging Your Right to Buy Home

Using a Specialist Right to Buy Broker

Useful Calculators

Related Guides

Selling Your RTB Property & What Comes After

The Repayment Rules

Your Rights and Restrictions as an RTB Owner

What Happens When You Want to Move On?

Remortgaging Your Right to Buy Home

Using a Specialist Right to Buy Broker

Can I sell my Right to Buy property straight away?

How is the discount repayment calculated when I sell within five years?

Do I have to offer the property back to the council before selling?

Can I rent out my Right to Buy property?

Can I pass my Right to Buy home to a family member or gift it?

Useful Calculators

Related Guides

Ready to Take the First Step?

Speak to one of our fee-free mortgage advisers today. We'll calculate your affordability, explain your options, and help you move forward with confidence.