Are you thinking about the exciting journey of purchasing a home? Whether you’re exploring the possibilities of Right to Buy or looking for assistance in securing a mortgage, this guide is tailored to provide valuable insights. Below is given information on Right to Buy Scheme.

What is the Right to Buy Scheme: A Complete Breakdown

The government’s Right to Buy scheme has witnessed significant amount of growth in recent years, offering council home renters a pathway to homeownership. One standout advantage is the substantial discount on property prices. Here’s a comprehensive guide to help you understand the scheme and make the most of its benefits.

Who Qualifies for Right to Buy?

Established over four decades ago, the Right to Buy scheme is primarily focused on England, remaining active in Northern Ireland. To qualify, you must meet specific criteria:

• The property you intend to buy must be your primary residence.
• Your home should be self-contained, with no shared rooms with individuals outside your household.
• You must have a legal contract, making you a secure tenant with a public sector landlord for at least three years.
• Public sector landlords include councils, housing associations, or NHS trusts.
• You must have no outstanding legal issues related to debt, such as a county court judgment.

Joint applications and applications with up to three family members are possible under certain conditions.

Applying for Right to Buy: Step-by-Step

To apply Right to Buy process successfully, follow these four simple steps:

Step 1:

Complete the RTB1 application form.

Step 2:

Send the completed form to your landlord

Step 3:

Await your landlord’s response within the specified timeframe, with a clear reason provided for any rejection.

Step 4:

If approved, your landlord will send a detailed offer within the designated period including the following: property details, pricing, discounts, service charge estimates, and structural issues. You have 12 weeks to decide whether you wish to proceed.

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Right to Buy Discounts: Maximizing Your Benefits

A significant advantage of the Right to Buy scheme is the discounted price you can obtain. The discount percentage varies based on factors such as property type, location, and duration as a public sector tenant. Additionally, other considerations may influence the discount. For example:

• Living in a house for three to five years grants a 35% discount.
• Public sector tenancy exceeding five years increases the discount by 1% annually, up to a maximum of 70%.                                                                                                         

For flats, the discount starts at 50% for three to five years and increases by 2% each year after five years. The discounted amount can be used as a deposit meaning that in some cases you may not need a physical cash deposit.

Restrictions and Alternatives

Certain restrictions may disqualify you from the Right to Buy scheme; for instance, changes in property ownership can be a determining factor. In such cases, the Preserved Right to Buy or Right to Acquire schemes might be applicable, each with its criteria.

Preserved Right to Buy requires meeting the standard Right to Buy criteria, even if the property changed ownership. If ineligible for Right to Buy or Preserved Right to Buy, consider the Right to Acquire scheme, allowing housing association tenants to buy at a discount (up to £16,000) with specific eligibility criteria.

Financing Your Home Purchase

Securing a mortgage is a crucial step in buying your council home. Recommend researching various mortgage options and consulting a professional financial or mortgage adviser for tailored advice. In addition to this, you would need to consider the additional costs associated with homeownership, including repairs, maintenance, and Stamp Duty. Choosing the right financial advice tailored to your circumstances is crucial. Our seasoned experts, well-versed in the challenges of the property market, offer services completely free of charge. Yes, you read that right. We commit to turning your homeownership dreams into reality without charging any fees.

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