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The Right to Buy scheme allows council tenants to buy their council home at a discount.

You can apply to purchase if:

  • It’s your only or main home
  • It’s self-contained (not shared accommodation)
  • You’re a secure tenant (normally able to live in the property for the rest of your life)
  • You’ve had a public sector landlord (council, housing association, NHS trust etc), for at least 3 years

The maximum discount that can be applied is currently £87,200, but in London this is increased to £116,200. The discount is based on multiple factors such as how long you have been a tenant for, the value of your home and the type of property (house/flat). For joint applications the years of whoever has been the longest public sector tenant will be counted.

 

If you sell your home within 5 years of purchasing, you may be required to repay some or all the discount. If you want to re-mortgage to borrow additional funds above your discount or let your property within this time frame, you will require prior approval from your council.

 

One condition of Right to Buy is that all persons named on the offer letter (known as a Section 125), must be named on your mortgage application and deeds of the property. Some councils may allow a tenant to submit a request to add another person to their Right to Buy claim and purchase. This often works well for older tenants who would like children to support their application/affordability.

 

The advantage of Right to Buy for purchasers is that often, you will not have to place a cash deposit on the property as lenders will accept the discount (equity) wholly as the deposit. This is of course subject to lender affordability and criteria checks being satisfied.

 

London Mortgage Partners handle a substantial amount of Right to Buy mortgage applications. Get in touch today to see if we could help you.