Right to Buy Mortgages
The Right to buy scheme first introduced in 1980, enables secure local authority tenants with at least two years tenancy to buy their current council owned homes at a discount price.
In order to attain a right to buy mortgage, you must pass through several lines of screening, the levels of screening are controlled by your local authority, local authority right to buy applications can be applied through any local council.
The Right to Buy scheme has assisted approximately 1.6 million council tenants throughout England to buy their own homes. In many cases, it has encouraged the more affluent tenants to remain in their neighborhood's where they have lived for many years or generations, helping create stable, mixed income communities.
If you are eligible for a right to buy house purchase, you may discover that you qualify for a discount. These discounts are based upon the current market value of the property.
When purchasing a property you must bear in mind that there are many associated costs to a house purchase:-
- Mortgage repayments
- Building insurance
- Content insurance
- Solicitor Fees
- Leaseholder Fees
- Repairs and general up-keep, retaining the value of the property
Please note that once a property has been sold under a Right to Buy purchase program, the local Council will no longer retain the title deeds, and these will be passed across to the mortgage lender.
Some council owned properties are exempt from the Right to Buy scheme. These include dwellings that are connected with a tenant's employment, and such housing specially provided for older people and (in certain cases) people with disabilities.
Right to Buy Tips
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Often no deposit is required because of the discount given by the local authority
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You may be able to borrow MORE than the Right to Buy purchase price of the property for home improvements, debt consolidation, and more.
Right to Buy Guidelines
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If your tenancy started before 18 January 2005 you will need to have a minimum tenancy of 2 years
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If your tenancy started after 18 January 2005 you will need to have a minimum tenancy of 5 years.
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At least one of the tenants of the property is applying to purchase.
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All the tenants have completed and signed our RTB1 form, whether they wish to purchase or not.
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Your home does not fall under the exemption category.
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Your tenancy is considered to be secure.