The Right to Buy Scheme: What is it and Could You Benefit?

If you live in a housing association property you’ll be able to buy your home at a discount under plans to extend the Right to Buy scheme, the Prime Minster has announced.

The extension of Right to Buy to include housing association tenants is new and we’re waiting for details about how it will work. However if you’re currently living in a council house you can start looking into buying your home with the Right to Buy scheme today.

If you’re a council tenant in England, the Right to Buy scheme helps you buy your home at a discount of up to £87,200. This discount rises to up to £116,200 in London. And if you buy through this scheme not only will you benefit from any rises in your property’s value but you’ll also have freedom to make changes to your home too.

There are some things you should consider though. Owning your own home comes with costs and responsibilities; for example if the boiler breaks down it will be on you to get it fixed. But considering the size of the discounts on offer for people buying through the scheme you might think now is the right time to take the plunge.

Sounds exciting, right? But the question is are you eligible. To find out if you’re eligible there are certain boxes you’ll need to tick like you’ll need to confirm it will be your only or main home. And you’ll need to have been a council or public sector tenant for three years (although it doesn’t have to be three years in a row). Let us help find out if you are eligible and contact us today.

The Right to Buy discount you’ll get will depend on:

• Whether you live in a house or a flat.
• The value of your home
• The total amount of time you’ve been a council tenant for. So it’s not just about the amount of time you’ve lived in your current home for.

And the maximum discount is 70% or £87,200 across England and £116,200 in London boroughs (whichever is lower). And you’ll usually have to repay some or all of your discount if you sell your home within five years.

One major advantage of the scheme is that when it comes to mortgages most lenders will accept your Right to Buy discount in place of a cash deposit. And this means you won’t have to save up for a hefty deposit to buy your first home.

However just like anyone taking out a mortgage, you’ll want to make sure you get the right mortgage. So when it comes to your Right to Buy mortgage, it’s a good idea to speak to an expert mortgage adviser. They’ll go through your individual

circumstances and help find the right mortgage for you. Plus they’ll answer all your questions too.

Right to Buy? We can help

Are you interested in using the Right to Buy scheme and do you want to find out more about Right to Buy mortgages? Then we can help.