Exercising the right to buy

ONE OF THE 'revolutionary' reforms made by Mrs Thatcher was to allow council tenants to purchase their properties at a discount to open market value the quantum of which depended upon how long they had been such tenants.
In order to prevent the scheme being abused the discount (or a proportion of it) is refundable to the council if the property is transferred (or a 21-year lease granted other than at a rack rent) within a statutory period. From 1984 (under what is now Housing Act 1985 s 155) this has been five years the obligation to repay the whole of the discount abating by 20% a year over that period ('a clawback charge'). The clawback is secured by a statutory charge over the property.

Probate values

The clawback charge is however not triggered by an exempt disposal (as defined in Housing Act...