The Right to Buy scheme was introduced in the 1980s, giving social housing tenants the right to buy their home, if they wanted to. The idea being that people who have lived in one place, for a long time, would want to make it their own. Therefore, the scheme was designed to make such wants a reality by offering a substantial discount on the cost. As of April, this year (2017), across England, you could save a maximum of £78,600 or £104,900 in London.
As a rule of thumb, discount levels are around 35% for houses and 50% for flats, unless you’ve been in the property for longer than 6 years, then the savings could be even greater.
It’s nothing too dissimilar to a normal mortgage; it requires monthly instalments and are paid with interest. Like any mortgage, your individual circumstances are taken in to consideration against the property and its value. And the right package will be designed for you.
Under new legislation, from May 2015, you could have the Right to Buy if you’re a secure council tenant (had council tenancy for at least 12 months) and spent at least 3 years as a public-sector tenant (council, housing association or NHS trust). Note that these 3 years do not have to be consecutive.
The Right to Buy is not available in such circumstances. You’d need to negotiate with your landlord if you’re wanting a further stake in your home.
Yes, this can count towards the 3-year qualifying period for the Right to Buy. This is also applicable if you’re the husband, wife or civil partner of a member of the armed forces and lived with them in this accommodation. However, if you’re currently living in armed forces accommodation you do not have the Right to Buy.
Family members can get in on the Right to Buy as long as they are named on the tenancy, or have lived in the property for the past year. The funding of the purchase can, essentially, come from anywhere, although the legal owner of the property can only be in the name of eligible tenants – so it’s best to get some further advice on this.
Typically, your landlord is solely responsible for any maintenance on the property, per your tenancy agreement. However, that’s not to say that they have to fix it just because you want to buy it. If it’s in a state of repair, it will be taken into consideration upon valuation. Just make sure you get a detailed survey done beforehand.
Just because you’re on benefits it doesn’t affect your chances of qualifying for Right to Buy Mortgages. You must be able to guarantee you can afford your monthly repayments, though. Use this helpful page: ‘Can I afford It?’ for further information.
Because MortgageKey are a broker, impartial information and advice comes as part of the service. What’s more is that, unlike banks, we are not restricted to just one set of mortgage products – we have access to the whole market. This gives you a much wider range of deals to choose from. On top of that, we’re very experienced in Right to Buy Mortgages and have helped hundreds of people buy their homes. Furthermore, our reliable and friendly service suits this somewhat complicated process, so feel free to give us a call or visit our Right to Buy Mortgages page for more detail.
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Representative Example: Annual Interest rate of 2.44% fixed for 2 Years followed by 3.59% for the remaining term. Representative 3.50% APRC Variable. Based on borrowing of 150,000 over 17 years repayments of £899 per month. Total amount repayable £198,466. Includes Lender Fee of £995 and Broker Fee of £695.