April 7, 2017

Right to Buy Scheme Mortgages in East London

If you have lived in your council or public sector flat or house for atleast three years, then you may qualify for a discount if you decided to buy the property.

How much discount could I receive ?

  • Maximum amount for London – £103,900
  • Everywhere else – £77,900
  • Wales – £8,000
  • Northern Ireland – £24,000
  • Scotland – Withdrawn as of August 2016

There are rules in relation to selling your house within certain periods of receiving a discount. You will be required to pay back all or some of the discount received within the first five years, aswell as sharing in the profit if sold within the first five years.

Eligibility Criteria

  • Must have lived as a tenant in your council or public home for atleast 3 years
  • The home to be purchased must be used as your main residence
  • Must be a self-contained property – ie. you don’t share the rooms in the property with other tenants
  • Your Landlord is any of the following:
    • Local council
    • NHS Trust
    • Housing Association
    • other Public Sector Landlord (not a private Landlord)

Also:

  • You are permitted to apply under a shared tenancy type arrangement with upto 3 other members of your family who all share the home together, providing you have all lived together for atleast 12 months.
  • If your council Landlord happened to sell your rented property to some other public sector Landlord, you may still be able to qualify for a discount and preserve your right to buy under a scheme known as ‘Preserved Right to Buy’.

Instances when you don’t have a Right to Buy

  • Times when a housing shortage is being experienced
  • If you are in the middle of eviction procedures or about to be handed notice thereof
  • You are an undischarged Bankrupt
  • If you are experiencing large debt problems
  • If your home is reserved for people with disabilities or the elderly community

How to start the process

  • Obtain a Right to Buy form from your Landlord, they cannot usually refuse
  • Fill in the form, send it back and your Landlord has to reply within 4 weeks
  • If your Landlord refuses, they must give a full explanation in writing
  • If they agree, then they will present you with an asking price and offer
  • Your Landlord will state their asking price and justify the amount of discount that they feel is appropriate and reasonable
  • You then have 3 months to decide whether or not to proceed with the sale or not
  • You can pull out of a sale and continue to rent at any time before the sale completes
  • Once you and the Landlord have agreed on the discount and sale price, then you can go ahead and apply for a mortgage to fund the purchase
  • The lender will carry out an affordability assessment and carry out the usual financial and status checks associated with a mortgage application
  • Hopefully the Lender approves the application and you are good to go, enjoy you’re new property

How I can Help

I can provide you with concise and comprehensive advice and assistance regarding all aspects of your Right to Buy mortgage needs from initial advice to application stage and all the way to completion. Having a mortgage professional on hand to assist you every step of the process can save you time, effort and money, easing the stress of your mortgage process.

Please contact me today for an informal and friendly chat to discuss your needs. All initial advice is completely free and confidential. You can contact me using the “contact us” form at the top right of this Page and i’ll get back to you as soon as possible, or alternatively you can contact me via my details below, or  CLICK HERE

Thank you for visiting.

Balraj Singh (Bal)

CeMap

Email: Bal@1stcall4mortgages.co.uk

Tel: 0330 010 1433 (Mobile Friendly)

Mob: 07985 417 490