There is nothing quite like owning your own home and people can realise their dream through a handful of different ways. They can inherit it, get help through the bank of mum and dad, save up for the required deposit or, if they are currently a tenant of a council or housing association, they can try to buy the property they are renting.
It is called Right to Buy or Right to Acquire and allows most council tenants in England the right to buy their home at a discounted price. Different rules apply if you are living in Wales, Scotland or Northern Ireland.
Are you eligible?
Eligibility centres on things like the length of time you have had a public sector landlord, if the property is your main home and if the property is self-contained. If you qualify, you can make an application by yourself or jointly with someone who shares your tenancy or with family members who meet the necessary criteria.
As with any decision to purchase a property, Right to Buy is a big step to undertake and it is important to understand all the implications before pressing ahead. We asked our founder and principal mortgage adviser Nathan Blissett, who is based in Telford, Shropshire, to give his insight on Right to Buy. We hope you find it useful:
He said: “The current UK housing market is going through a transition period of adjustments and fierce competition via the buyers looking to secure their perfect property. One option many tenanted applicants may not be aware of is their right to purchase their council or housing association property at a hugely discounted price.
Terrific incentive
“Most people are eligible for Right to Buy or Right to Acquire after three or more years as tenants living in the council system. Even if you have moved council properties within the first three years you can still get the discount on your property which can be as much as 70% off the value of the home on the open market.
“The level of discount depends on the length of time of your tenancy, the type of property you intend buying and the value of the property. If you intend to buy jointly with someone else, the level of discount is based on which of you has had the longest tenancy.
“It is also worth mentioning at this point that if you proceed and are successful with your application, you would be required to pay back part or all of the discount should you sell your home within five years.
Important advantages
“The discount on your home is a major factor in whether or not many people can afford to buy a property and cuts out a few variables in the buying and selling market, as you would:
- Already have the property lined up available to purchase with no other bidders.
- Receive a massive discount given to you by your landlord which can be used as your initial deposit.
- Be able to raise capital for home improvements, meaning you can take equity out of the property discount for use on modernising the home you currently have.
“The great thing about this scheme is that it is quite heavily backed across the market – including the Nationwide and Skipton Building Society. Two highly reputable lenders who provide very competitive products for these types of purchases.
Getting started
“To get the ball rolling you will need to contact your council or housing association to make your application and obtain your discount. Then get in touch with us at Dwello Mortgages to discuss the best option based on your current personal and financial situations. Our team has a wealth of experience with all aspects of mortgage delivery, including Right to Buy acquisitions, and will always keep your best interests as our top priority.
“Right to Buy could be the easiest step to take in getting your feet on the property ladder this year, without breaking the bank to secure your deposit for the purchase.
If it is something that interests you, don’t hesitate to call Dwello Mortgages and we would be happy to discuss the process with you in greater detail.”
Talk to the Dwello team by sending Nathan a WhatsApp on 07714 597 081 or call 0333 533 0051.
