Right to Buy is simply a government scheme that allows Council tenants to purchase their Council home at a discounted price. The scheme is further extended to include ex-Council homes that have subsequently been sold to another landlord such as a Housing Association e.g. Magenta Homes, whilst you were living in the property. This is called a ‘Preserved Right to Buy’.
The discount offered is directly linked to the number of years that you have been a tenant and increases annually up to a set maximum level dependent on your geographical location.
Many mortgage lenders will accept the proposed discount as your full deposit for the property meaning that you will only potentially have to cover the associated costs of purchase to become a homeowner.
Some mortgage lenders will ultimately provide additional funds for property improvements if the discount is sufficient, providing the opportunity for you to renovate the property as well.
The scheme rules can be complex particularly with the onset of the Right to Acquire scheme and you have to give careful consideration to your overall financial position when accepting the option to purchase.
We have years of experience working in this area of the mortgage market, advising clients on the rules of the scheme and their options available to realise their dream of property ownership rather than remaining as tenants.
Whether you have been offered the opportunity to utilise the scheme or believe that you qualify to do so, please feel free to get in touch to start off the process with a free initial consultation.