Affordable housing - discount market sale scheme customer information guide

To keep houses affordable, when you sell your Discount Market Sale home you must pass your discount on to the next purchaser. The Section 106 agreement attached to a Discount Market Sale property will normally provide the information needed to sell your house. It will set out the discount which should be applied and who can buy the property (eligibility criteria). Whilst the discount is in perpetuity the eligibility criteria is time restricted. The agreement can be found in the Land Registry documents relating to your property.  

The Strategic Housing Team does not hold a register of prospective purchasers. You can freely market your property with an estate agent of your choice, however during the twelve week notice period the eligibility criteria listed within this guide is applicable to all future purchases. Upon the expiry of the twelve week notice period any person will become eligible to purchase a Discount Market Sale property. Each time the Affordable Home is sold, it must be sold with the same discount from open market value to ensure that it remains an affordable Discount Market Value property.  

Before marketing a discounted property, the owner must notify the Local Authority of their intention to sell. Please email strategichousing@stockton.gov.uk stating your intention to sell the property and Strategic Housing will aim to confirm receipt of your email within two working days. The twelve week notice period will start on receipt of Strategic Housing's confirmation. During this notice period all eligibility criteria stated within this guide is applicable to future purchasers. Within your confirmation email Strategic Housing will advise you of the next steps you need to take and the expiry date of the notice period.  

Before approaching an estate agent to market the property a sale price needs to be agreed by Stockton-on-Tees Borough Council's Land and Property team. The valuation must state both the open market and discounted market sale figures and must be dated within the three months of the date it is reviewed by Stockton-on-Tees Borough Council. You are responsible for the cost of this valuation. Once the valuation report has been produced a copy needs to be emailed to strategichousing@stockton.gov.uk for review.  

When Stockton-on-Tees Borough Council confirm that they accept the valuation, a maximum sale price will be agreed, ensuring that the correct discount is applied. The marketing publicity must stipulate that the property is an affordable home, subject to a Section 106 agreement and that buyers must meet local eligibility criteria (during the notice period) and be approved by Stockton-on-Tees Borough Council.  

Existing Discount for Market sale property owners may find themselves in a position of "negative equity". If pursuing the discount from open market value condition would cause severe financial hardship, Stockton-on-Tees Borough Council will, on presentation of all supporting documentation, consider if they would be willing to reduce or remove the discount from open market value applied to their property. Should any discount from open market value be removed, any additional capital receipt over and above the original discounted maximum sale value after deducting "reasonable sale costs" will be repayable to Stockton-on-Tees Borough Council. Supporting documentation includes confirmation of any outstanding mortgage balance on the Discount for Market Sale property, the completion of an income and expenditure form, and revised RICS valuation.