Right to Buy Scheme

Right to Buy

If you rent your current home from the Council then you may have the “Right to Buy” it and get quite a hefty discount. The first people you need to speak with your local council to see if they would allow you to buy it. Once you have found out how much the property is currently worth and how much you can buy it for.

You will then need to come speak to us to see what mortgages are available to you. I personally think this is great as you can get a huge discount on your home.

TIPS: 1. You are unable to sell it within the first five years from your purchase or “completion” date (i.e. when the mortgage goes through) otherwise, you would have to repay your initial discount.

 

2. You are also unable to rent the property within the first 5 years. Only a handful of lenders also lend on Right to Buy so it’s worth speaking to a professional! After all a chat does not cost anything

Right to Buy Q&As

You probably have the Right to Buy if you’re a secure council tenant and have spent at least 3* years as a public-sector tenant. The 3 years doesn’t have to be continuous and you can add together any time you have spent as a public-sector tenant. A public-sector tenant is someone whose landlord is a public body such as a council, housing association or government department. Eligibility criteria also include having no legal issues with debt or any outstanding possession orders. You should be aware that some properties are exempt from Right to Buy.

* In May 2015, the eligibility criteria for Right to Buy was reduced from 5 years public sector tenancy to 3 years.

The following discount levels will apply:

• 3 years – 35% discount for a house and 50% discount for a flat
• 4 years – 35% discount for a house and 50% discount for a flat
• 5 years – 35% discount for a house and 50% discount for a flat
• 6 years plus – add 1% per year for houses (up to 70% or the cash maximum – whichever is lower), add 2% per year for flats (up to 70% or the cash maximum – whichever is lower)

Yes, you can but only certain people can join an application. If you are eligible, you may be able to buy with:

– someone who is on the tenancy agreement with you;
– your spouse or civil partner;
– up to three family members, who have been living in your home for the 12 months immediately before you make the application. They don’t have to be on the tenancy agreement, but it must be their main home.

Housing is a devolved policy, and it’s up to the governments in Scotland, Wales and Northern Ireland to decide whether to offer schemes such as Right to Buy. You can find out more on their websites:

Any period spent in armed forces accommodation can count towards the three-year qualifying period for Right to Buy and the qualifying period for the discount. You can also count this time if your husband/wife/civil partner was a member of the armed forces and you lived with them in this accommodation. If you currently live in armed forces accommodation you do not have the Right to Buy.

Right to Buy was introduced in 1980 and gives eligible social housing tenants the right to buy their home at a discount. Over the years, discount levels and eligibility criteria have varied. Concerned that the scheme had become unaffordable for many tenants the Government has introduced major changes to the Right to Buy since April 2012.
From 6 April 2018, maximum discounts are £80,900 across England and £108,000 in London. Discounts increase in April every year in line with any increase in inflation.

Please use the following link to the governments calculator to find out what discount you can get

Right to Buy calculator

You probably have the Right to Buy if you’re a secure council tenant and have spent at least 3* years as a public-sector tenant. The 3 years doesn’t have to be continuous and you can add together any time you have spent as a public-sector tenant. A public-sector tenant is someone whose landlord is a public body such as a council, housing association or government department. Eligibility criteria also include having no legal issues with debt or any outstanding possession orders. You should be aware that some properties are exempt from Right to Buy.

* In May 2015, the eligibility criteria for Right to Buy was reduced from 5 years public sector tenancy to 3 years.

Yes. The mortgage lender who offers you the mortgage for the Right to Buy will give you a much cheaper interest rate because you will use the full deposit as the deposit which give you cheaper interest rates on the mortgage.
Just note that not all mortgage lenders offer Right to Buy mortgages.

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