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
https://righttobuy.gov.uk/right-to-buy-calculator/
Just note that not all mortgage lenders offer Right to Buy mortgages.
* In May 2015, the eligibility criteria for Right to Buy was reduced from 5 years public sector tenancy to 3 years.
• 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)
– 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.
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.
* In May 2015, the eligibility criteria for Right to Buy was reduced from 5 years public sector tenancy to 3 years.