How To Arrange a "Right to Buy" Mortgage

right to buy mortgage

Are you living in a council house where you are a secure council tenant? If so, you may be able to purchase your home with the help of a discount under the Right to Buy scheme. You may be able to secure a mortgage to purchase the house. If you are considering this scheme, here are a few steps to take in order to set the ball rolling.


1. Find Out About Possible Discounts

At present the total allowable discount on a property in England is £70,900 and in London it is £103, 900. In Wales the total discount is £8,000 and it is £24,000 in Northern Island. If you use this discount to purchase the property and then you sell within a timeframe of five years you will need to pay back the amount of the discount and also any profit you have shared in.

2. Find Out If You Can Apply

In most cases, you can apply for a right to buy mortgage if you have been a council tenant or public sector tenant for three years (doesn’t have to be continuous), and the home you want to purchase will be your main residence. You also need to live in a property where you do not have shared rooms with other people, and the landlord must be the council or a housing association. In addition, you can apply for the scheme alongside another person as long as they are named on the tenancy agreement, or you can get into the scheme with up to three family members who have lived with you for at least 12 months.

3. Find Out When You Can’t

You probably won’t be eligible for the Right to Buy scheme if you are currently under threat of eviction, or you are bankrupt. Large debts are also a prohibitive factor. And your home may be reserved for the disabled or elderly people, and in which case it will not be possible to purchase it.

4. Start the Process

Get a Right to Buy form from your landlord. Your landlord will then need to reply within a period of four weeks. They can deny the request and tell you why, or say yes and make an offer. In addition, it is a good idea to start to speak to a Right to Buy specialist who will be able to advise you on how to go forward with the application. If you disagree with the discount or the price then you can ask for an independent valuation.

AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.




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