Right To Buy
- Expert guidance for first time buyers
- Help available seven days a week
- Personalised support at every stage of the process
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What is Right to Buy?
Right to Buy allows council tenants to buy their homes at a reduced price.
You start to qualify for a discount after being a council tenant for at least three years.
Councils can offer you a big discount if you qualify for the Right to Buy. In most cases, you will still need a mortgage to cover the difference.
Right to Buy is often an appealing option due to this discount. Your property may end up being worth much more than you paid for it. Moreover, since you already live there, you don’t have to worry about moving!
Who is eligible for Right to Buy?
You can check your eligibility via the Own Your Home website but the key criteria is listed below.
At least one applicant must be named on the tenancy agreement for the property. You can apply jointly with a spouse or civil partner, or with a family member who has lived in the property with you for the past twelve months, as long as it is their main home.
The scheme probably won’t apply to your property if it is sheltered housing or reserved for elderly or disabled residents.
You also can’t have any legal problems with debt, such as a bankruptcy or debt relief order. Furthermore, you can’t be the subject of a possession order that requires you to leave the property.
What discount could I get?
The maximum discount available is 70% of the property’s market valuation or the cash maximum, whichever is lower.
The amount you are entitled to depends on how long you have been a tenant, the value of the property, and whether it is a house or a flat.
Use the Right to Buy calculator to find out what discount you might get.
Do I still need a deposit for Right to Buy?
Nope!
There are lenders who will accept the discount as your deposit. Others require you to put some money down as well.
Can I buy my council house while on benefits?
Possibly, yes. Lenders are available who accept benefit income.
Neither Housing Benefit nor a housing element of Universal Credit payments can be used to help you get a mortgage. Owning your own home might cause these payments to be reduced or stop entirely.
Why The Mortgage Store Chorley?
Exclusive rates you won’t get directly from lenders
A dedicated point of contact from initial enquiry right through to completion and beyond
Appointments seven days a week, to best suit your schedule
Ongoing rate monitoring until completion as standard
Unsure if you can get a mortgage?
Contact us now for a no-obligation chat.
Can somebody else buy my council house for me?
A family member can certainly provide funding, or go on the Right to Buy application with you if they live with you and have done so for the past twelve months.
Legal ownership, and consequently a mortgage, has to be in the names of eligible applicants only.
Is there a minimum income requirement?
No. You just need to be earning enough to get the mortgage you need to buy the property.
Lenders will look at both your income and your expenditure, so it isn’t all about what’s coming in – what’s going out matters, too. We’re more than happy to go through all this with you, so we can give you an indication of what you might be able to borrow.
What is the process for Right to Buy?
When you decide you want to buy your property and have checked your eligibility, the first step is to complete a RTB1 form. It informs your landlord that you are interested in buying the property.
Once Right to Buy is confirmed, you’ll receive an offer notice confirming:
- the price they think you should pay, and how it was worked out
- your discount, and how it was worked out
- a description of the property
- any structural problems they know about
- any terms and conditions
If the property is leasehold, your section 125 offer notice will also include an estimate of your service charges over the next five years.
After that, you have up to twelve weeks to decide whether to proceed. If you do, you need to arrange a mortgage and appoint a solicitor. You should speak to a mortgage advisor before committing to buying. Your advisor can help you find out what you can borrow and how much your mortgage will cost.
Chat with our expert advisor
Can I sell the house in the future?
Once you own the property you can sell whenever you like, but it may be subject to some restrictions.
If you sell within ten years of buying it, you first have to ask your former landlord if they want to buy your home back at market value. If they say ‘no’ then you can sell it on the open market.
In addition:
- if you sell within five years you will usually have to repay some or all of the Right to Buy discount. The amount depends on the price you sell at and how long you have been the owner. This also applies if you agree to transfer ownership to somebody else.
- if you live in a rural area you may only be allowed to sell your home to somebody who lives or works locally. Ask your landlord about this before purchasing.
Pros and cons of Right to Buy
Pros
- You don’t necessarily need your own deposit
- A generous discount makes buying the property more affordable
- Something to show for years of paying rent; can also be handed down to children
- No moving costs
Cons
- Effectively tied in to remaining in the property for at least five years, or otherwise have to pay back some of the discount if moving within that timeframe
- Ex-council properties can be harder to sell and may not increase in value as much as other properties
- Responsibility for maintenance and upkeep passes to you as the owner; the council is no longer liable
How can The Mortgage Store Chorley help with Right to Buy?
Are you renting a council property and dreaming of owning your own home? The Mortgage Store Chorley is here to make that dream a reality with the Right to Buy scheme!
We’ll help you navigate through the process, explaining everything in simple terms and ensuring you understand your rights. With our expert advice and support, you could be on your way to becoming a proud homeowner sooner than you think.
Don’t let renting hold you back any longer – contact us today and take the first step towards owning your own home through Right to Buy!
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
