How we work out the price you will have to pay
Updated: 19 Jan 2019
We will assess the property price based upon the following factors:
- the market value of the dwelling as at the date of the completed application
- less the eligible discount
- subject to the historic cost.
Improvements completed by the applicant will be disregarded when the market value of the dwelling is being assessed.
The market value
The market value is the price of the dwelling as assessed by an independent professional valuer* as at the date of application. Tenants can challenge the market value as assessed by the independent valuer. The market value will be then assessed by Land and Property Services. The revised market value can increase and decrease and will be binding upon the tenant and the Housing Executive.
* Under the terms of the scheme the independent valuer’s firm is not permitted to provide applicants with mortgages or provide any other financial services.
Tenants are entitled to discount which is assessed as 20% of the market value after five completed years with the Housing Executive or qualifying landlord tenancy plus an increase of 2% of the market value for each additional year’s tenancy up to a maximum of 60%. The maximum discount an applicant can receive is £24,000. Discount received under the scheme must be repaid if the dwelling or equity in the dwelling is sold within 5 years from the date of purchase.
Historic cost relates to the Housing Executive costs to build, improve or purchase a dwelling. We cannot sell a dwelling for less than the historic cost unless the market value is lower than the historic cost. In such circumstances discounts do not apply.
Historic costs does not include repair costs and covers the present year and the previous ten financial years.