Right to Buy
Fish4Mortgage is located in Weston-super-Mare, Somerset & is the area’s leading Mortgage Broker with over 25 years of knowledge in the field. We specialise in many areas including re-mortgages, first time buyers, commercial mortgages, general insurance & secured loans. Explore our website to find out more information & also go ahead & use our Mortgage Calculator to see what deals are available to you.
What is Right to Buy?
If you rent a local authority property the chances are that you will have a right to buy the property at a discount from the local authority, this means that subject to your income you will not need a deposit as the mortgage lender will accept the discount that the council are giving you as you deposit.
In many cases this means that that not only are you able to buy the property at a discount your mortgage rate will be less than if you purchased in the private sector. Not all lenders accept right to buy applications so consult a whole of market mortgage broker for your best options.
How much will my discount be?
The maximum right to buy discount is:
- £108,000 in London
- £80,900 for the rest of England
- £8,000 in Wales
- £24,000 in Northern Ireland
- In Scotland the scheme ended on 1 August 2016.
If you sell within five years you will have to pay back your total discount, or some of it, plus a share of any profit.
Can I apply?
- You’ve been a council or public sector tenant for three years
- The home you want to buy will be used as your main home
- You don’t share rooms with other people – i.e. the property is self-contained
- Your landlord is the council, a housing association, NHS trust or other public sector landlord
- You can apply for Right to Buy with someone else who shares the tenancy with you; or with as many as three members of your family if you’ve lived together for at least the past 12 months
- If the council sold your home to another public sector landlord while you were living there, you may still buy it under ‘Preserved Right to Buy’
When don’t you have a Right to Buy?
- If you’re under threat of eviction, are bankrupt or have large debts
- If your home is reserved for the elderly or disabled
- When there’s a shortage of housing
How do I start the process?
Ask your landlord for a Right to Buy form. Once you’ve posted it, your landlord must reply within four weeks.
If the answer is no they must say why, and if the answer is yes they’ll send you an offer.
You can also speak to the Right to Buy Agents’ service which will signpost tenants to no-obligation independent advice and to help them with the application process.
How much will it cost to buy the property?
Your landlord will name their price and explain the discount.
If you don’t think it’s fair you can ask for a valuation from the independent Valuation Office Agency from HM Revenue & Customs.
- The landlord’s offer will include a description of the property and any land, details of any structural problems and an estimate of the service charge (if any) for the first five years
- The landlord must tell you if there are restrictions on who you can sell your home to later. This could make it more difficult to get a mortgage
- You have 12 weeks to decide whether to go ahead
Can I change my mind?
Yes, you can pull out of the sale and carry on renting at any time.
Raising the money
This is where we come in, most buyers will need to take out a mortgage to pay for their home. Here at Fish4Mortgage we have helped many people over the years take out a mortgage for their right to buy home, as a whole of the market broker we will scan the whole market so no matter who the lender we can find you the best interest rate deal to suit your circumstances.
We will also help guide you through the sometimes confusing and frustrating right to buy process.
Talk to one of our advisors today and ask them about right to buy, we have evening and weekend appointments available if required also.
Right to Acquire
Right to Acquire will end in Wales for all Council and housing association tenants on 26 January 2019.
Right to Acquire is a scheme offered in England and Wales for housing association tenants who don’t qualify for Right to Buy.
- You must have been a tenant for three years and be buying your property to use as your main home
- You can’t join the scheme if you’re under threat of eviction, bankrupt or if you have any large debts
- If properties are due to be demolished, or are provided for the elderly, disabled or those in certain jobs, they are not eligible
- Discounts are lower than under Right to Buy and typically range from £9,000 to £16,000
Your landlord must be a Registered Social Landlord regulated by the Welsh Government.