Understanding Right to Buy Mortgages

WHAT ARE THE RULES FOR THE RIGHT TO BUY SCHEME?

Right to Buy allows council housing tenants to purchase their council houses at a discounted price, offering a path to homeownership for those residing in social housing who meet specific criteria.

To apply for a Right to Buy mortgage, there are some essential qualifications to meet:

• Residency Requirement: You must have been living in council or social housing for at least three years. Secure Tenancy: You should be a secure tenant.
• Principal Residence: The house you intend to buy should be your only or main home.
• Individuals or joint applications with up to three family members who have lived with you in the past year, or the person with whom you share a tenancy, can apply for the scheme.

Under the Preserved Right to Buy scheme, homes that were previously owned by the council but sold to another landlord or housing association during your tenancy can also be purchased.

The amount of discount on the market value of your home varies based on several factors:

• Tenancy Duration: Houses are eligible for a 35% discount if you've lived there for three to five years, increasing by one percent for each additional year, up to a maximum of 70% or the maximum discount.
• Flat Discounts: Flats are eligible for a 50% discount for three to five years, increasing by 2% each year onwards, up to a maximum of 70% or the maximum discount.

The maximum discount available across England is £87,200, while in London boroughs, it rises to £116,200. You can calculate your eligible discount using the Right to Buy calculator on the government website.

If you decide to apply and receive an offer to sell, it's essential to keep in mind that you must respond within 12 weeks to decide if you wish to buy. You also have the option to withdraw from the sale and continue renting at any point during this process.

For more information and assistance with Right to Buy mortgages, contact Yes FS at 0800 083 0449.