The Right to Buy Scheme: how it works, who it’s for, and what you need to know
Getting on the property ladder isn’t easy, especially with the influx of news reports telling of rising house prices all over the UK. For many tenants of council houses, Right to Buy could therefore be an excellent solution, by providing tenants a more affordable way to purchase their home.
What is the Right to Buy scheme?
With the Right to Buy scheme, eligible tenants living in council homes can buy their home for a large discount. If you are eligible, you may be able to buy your home alongside someone sharing your tenancy with you and up to 3 family members who have lived with you for at least the past 12 months. If your property was a council home until it was sold to another landlord (such a housing association), you may still have preserved right to buy. This may affect the discount you can receive but still entitles you to buy your home at a reduced price.
How do you qualify for right to buy?
In order to be eligible:
- You must currently be a council tenant, or have been a council tenant when your home was sold to your current landlord
- You must have been a council tenant for at least three years (though these three years need not be consecutive)
- The property must be your only home
- Your home must not be scheduled for demolition
- You must not be currently facing a possession order
Your home must not be sheltered housing for disabled or elderly individuals
How much of a discount could I get with Right to Buy?
Your discount will depend on how long you’ve been a public sector tenant for, the type of the property you’re buying (whether it’s a flat or a house) and the value of your property. At the time of writing, the maximum discount you could receive is £84,600, except for properties in London which have a maximum discount of £112,800. You may be entitled to a smaller discount if you have purchased a home with right to buy before, and if your landlord has spent money on your home within the last ten years (if your landlord built or acquired your home before the 2nd April 2012).
Can I get a Right to Buy Mortgage?
Many lenders offer right to buy mortgages. Your affordability will be calculated depending on your income and financial outgoings and you will need to undergo a credit check, just as you would when applying for other residential mortgages. Find the best right to buy mortgage for you by speaking with our partner company, Starck Uberoi Wealth. Starck Uberoi Wealth provide pragmatic independent mortgage advice with recommendations from across the whole of the mortgage market. Book an appointment with their mortgages team by calling 020 8037 4027 or emailing info@suwealth.co.uk.
Do I need a deposit for Right to Buy?
Usually, you will not – although this will depend on your lender’s requirements. Some lenders will insist tenants pay a deposit regardless of their discount, but there are many lenders who are willing to accept your discount as a deposit. Speak to Starck Uberoi Wealth for more information on lender requirements.
Can I sell my Right to Buy property after purchasing?
Yes, but you may need to pay back all or some of the discount if you sell it within 5 years of purchase. The sooner after purchase you sell the property, the more of your discount you will need to pay back.
Do Housing Association tenants have Right to Buy?
You may not have right to buy, but if you’re a housing association tenant living in England you may have Right to Acquire. You may qualify if:
- Your home was built or purchased by a Housing Association after the 31st March 1997 or transferred from a local council to a housing association after this date.
- The property is your only or main home
- You are not facing bankruptcy or eviction
- You are not a council tenant (as you may have Right to Buy instead) and/or you do not have preserved right to buy
How do I use the Right to Buy scheme?
You can begin the process by completing the application form (RTB1 Notice) here and sending it to your landlord. Your landlord must then respond within 4 weeks of receiving the application (or 8 weeks if they have been your landlord for less than 3 years). If they refuse to let you buy your home under this scheme, they must provide a reason in their response. If they accept, they will then need to send you an offer within 8 weeks if you are purchasing a freehold property, or 12 weeks if you are purchasing a leasehold property.
What is the conveyancing process to buy my council flat?
You can use the Right to Buy scheme to buy your council flat, but the conveyancing process is quite different to that when purchasing a house. Some of the issues that your solicitor will need to look at include:
- The length of the lease
- Ground rent
- Service charges
- The terms of the lease
To find out more, please read our blog post on purchasing a leasehold property
Is Right to Buy a good idea?
This primarily depends on what your future plans are. The Right to Buy scheme can be a brilliant way to purchase your home at an affordable price and get on the property ladder, all without having to move elsewhere. You can also easily pass on your property to your children and have more freedom to make alterations to your home. However, as with all things, there are some downsides. Unless you’re willing to pay back some of the discount, you need to be prepared to stay in the property for at least the next five years. Plus, when you purchase the property, you will become responsible for funding and organising maintenance of the property.
How Starck Uberoi Solicitors can help
Our conveyancing solicitors have law society accreditation under the Conveyancing Quality Scheme (CQS), indicative of our high-quality and reliable conveyancing services. We also have extensive experience in handling right to buy purchases and are on the conveyancing lender panels of trusted conveyancers for the majority of high-street lenders able to act on behalf of both lender and client. For a breakdown of our fees, please use our instant online quote generator on our website. To book an appointment, please call 020 8840 6640 or email solicitor@starckuberoi.co.uk. Our offices are located in Brentford, Ealing, London Belgravia and Canterbury, all within easy reach by public transport. Our partner, Raminder Uberoi, can also provide a Notary Public Service at any of our London offices.
Read more
- First time buyer conveyancing
- Online Conveyancing Solicitors
- Purchasing a Leasehold Property
