Right to Buy scheme
- how long you have been a council tenant for,
- whether you buy a house or a flat and
- whether you buy in London or elsewhere
If your tenancy has been transferred to a housing association, you could still have Preserved Right to Buy, so if interested in buying, you should check your eligibility with your housing association.
Right to Buy process
If you believe that you’re eligible and would like to buy your home, you will have to complete the application form (RTB1) and take it or send it by recorded delivery to your landlord. It is also advised that you keep a copy for your reference.
Your landlord will be in touch with further information and will arrange a property valuation, which will be the basis for calculating the discounted purchase price.
Once the Right to Buy mortgage offer is issued and the solicitor has done the necessary checks, exchange of contracts and completion will take place similarly to a standard purchase.
It will be specified in the council’s / housing association’s offer letter, but the offered purchase price is typically valid for 3-6 months. Once this period ends, it is normally possible to get an extension, although that is often subject to a new valuation.
Right to Buy purchase pre-emption period
There is a so-called pre-emption period of 5 years, which means that if the buyer was to sell within this period, the discount would have to be repaid on a decreasing scale.
The following table can be found on the https://righttobuy.gov.uk website:
|If you sell within||Percentage of the discount to be repaid|
|The first year of purchase||100%|
The lender and the council expect you to live in the property during the pre-emption period, although they may be prepared to give a consent to let if you move home and want to rent out the property. However, obtaining a buy-to-let mortgage will only be possible from very few lenders.
Right to Acquire
Those who are public sector tenants for at least 3 years, may be eligible to buy their home under the Right to Acquire scheme. The potential public sector landlords include
- housing associations
- the armed services
- NHS trusts and foundation trusts
The discount, in this case, is dependent on the area and is between £9,000 and £16,000. For further details visit https://www.gov.uk/right-to-acquire-buying-housing-association-home
At BlueWing Financials, we deal with the lenders who cater for the Right to Buy scheme and are experts at finding our customers the most suitable deals.