Discounted Sales
The provision of Discounted Sale properties and the restrictions on their sales are secured through Section 106 planning obligations with housing developers. A Section 106 planning obligation is a legal document used to, among other things, set out the procedures which must be followed during the sale of a discounted sale property. If anyone buys a discounted sale property in breach of the 106-planning obligation the council can enforce the terms of the agreement by way of an injunction.
Discounted sale properties are properties which can be sold to eligible households for up to 80 per cent of their open market value, opening up home ownership to those who may be otherwise excluded from the market.
Under Discounted Sale, households purchase their home outright; no other party retains a share of equity in the property. However, the initial sale and all subsequent re-sales are usually subject to the same percentage discounts and this will be set out in the S106 agreement.
The Government’s Help To Buy scheme does not provide affordable housing, but can help households on to the housing ladder. You can find more information about the scheme here.
Am I eligible?
Residents who own the property they live in are not excluded from the discounted sale scheme, however, a discounted sale property must be their sole property.
If the applicant owns a residential property, they must show evidence to the Council that it has been sold subject to contract before completing the purchase of a discounted sale property. However, they may still apply for certification of eligibility to purchase and reserve a discounted sale property.
If the applicant owns more than one property, they will not be eligible to purchase a discounted sale property. Copeland Borough Council may make an exception, but this will depend on the individual circumstances of the applicant, which they must make the council aware of when they submit an application.
Applicants will qualify for affordable housing if they can demonstrate:
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Housing Need – this could be, for example, due to overcrowding, a need to move due to a medical condition, a need to move from a shared property
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Ability to purchase - If a household has sufficient available funds that would allow it to purchase the discounted sale property at its open market value then that household will not be certified to purchase a discounted sale property. We will need to see proof of your income and savings when you apply to assess your eligibility.
Available Funds = Mortgage in principle (no more than 4.5 x income) + savings + equity.
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Household Size – Households who will fully occupy the property will be given priority.
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Local Connection – a connection to the town or parish/surrounding parishes, this could be through employment, family association or previous/current residency.
Residents who own the property they live in are not excluded from the discounted sale scheme, however, a discounted sale property must be their sole property.
If the applicant owns a residential property, they must show evidence to us that it has been sold subject to contract before completing the purchase of a discounted sale property. However, they may still apply for certification of eligibility to purchase and reserve a discounted sale property.
If the applicant owns more than one property, they will not be eligible to purchase a discounted sale property. We may make an exception, but this will depend on the individual circumstances of the applicant, which they must make us aware of when they submit an application.
Our Affordable Sales Procedure provides more information on eligibility.
Discounted Sale Register
Copeland Borough Council has a registration scheme in place to allow households who believe they meet the eligibility criteria to register their interest in discounted sale properties. Households on the register will be notified when a discounted sale property becomes available and will be asked to apply if they are interested.
Holding a register allows us to understand where discounted sale properties are most needed and will help us negotiate affordable housing provision with developers. It will also help us provide a more direct service to households in need of a discounted sale property.
If anyone in your household is interested in a discounted sale property, please download and complete the registration form and send it to affordablesales@copeland.gov.uk or to the address on the form.
Please note that eligibility will be assessed at the point of application for a property and being on the register is not a guarantee that you will be certified as eligible to purchase a discounted sale property.
How to apply for a Discounted Sale property
If you have registered an interest in affordable sales housing with us, we will notify you of any developments that are granted planning permission and invite you to complete an application form. If you have not held on our register, you can still apply when properties become available. We will list available properties on our website.
You will need to return the form with evidence of your mortgage in principle, income and capital as listed on the application form. We will then assess your eligibility and let you know the outcome within 10 working days.
If you are eligible you will be sent a letter confirming this which you should take to the developer as proof of your eligibility.
Available Discounted Sale Housing in Copeland
Saltom Bay Heights, Whitehaven
Plot 1 (two-bed bungalow) - was £175,996, now £154,995
Plot 2 (two-bed bungalow) - was £175,996, now £154,995
Affordable bungalows in Whitehaven are now available to purchase if you live or work anywhere within Cumbria. At just £154,995 these detached homes with gardens are ready to move into. They are available through the affordable home scheme, offering properties to those on low incomes at a discounted price.
The properties are in the desirable Saltom Bay Heights development, offering coastal walks on your doorstep and easy access to the rest of Cumbria and beyond through great transport links.
Affordable homes offer opportunities for people at all stages of life including those looking to downsize or move into retirement. As well as for those looking to get onto the housing ladder that may have been unable to afford to do so otherwise and are offered at a discount to market value. These new homes may also be a good investment as, like all new build properties, they have a ten-year warranty and may have better energy efficiency that older properties.
The bungalows offer a great opportunity for those who may have limited mobility and they are well located, with good public transport nearby and have easy access to local shops including a pharmacy as well as bars and restaurants. Whitehaven links easily with the rest of Cumbria, providing access to Carlisle, Penrith and Barrow-in-Furness.
Please see the Gleeson Homes website or email saltombayheightssales@mjgleeson.com for more information about the development.
Further information
If you would like any more information on discounted housing, email affordablesales@copeland.gov.uk
List of Documents
