When selling a Right to Buy property, you need to check if the cost floor is relevant. Do you know what the cost floor is?
The cost floor is the accumulative total spent for a property during the last ten financial years (from date the application to buy was received).
This spend includes:
- renovation costs (e.g. bathrooms, kitchens)
- improvements (e.g. cladding works)
- even the cost to build the property or acquire it from another owner
It should also be remembered when calculating the relevant cost
