Right to buy is one of the most popular policies that has a big impact on society by making more people live in their own homes. Since 1980, when "right to buy" plans were put in place, renters have been able to buy their homes at lower prices. Through this programme, more than five million people who used to rent from the city or county became homeowners. By supporting the council right to buy scheme, you can be a part of what has been called "one of the most important social revolutions of this century."
If you have a security deposit,
- A local government
- The Housing Action Trust
- Registered landlord (non charitable)
- The London borough council
The Housing Act says that you can then legally buy the house. Buying a house can cost a lot of money. With a right-to-buy mortgage, you can pay for your home. For the right to buy, a council tenant must have lived there for at least two years. A new council tenant who moved in on or after January 18, 2005, will have to sign a lease for at least five years.
Calculate how much you have to pay for the right to buy before you go to Right to buy mortgage. Most lenders will give between 95% and 100% of the amount of the right to buy. You will have to do some research to find such a lender. There will be lenders who offer mortgages with the right to buy.
Start the day you get an offer from the council to buy. Research will be worth the time you put into it. Some companies may try to get in touch with you and tell you how they can help you with the council right to buy scheme. They might offer packages that include a mortgage, home improvements, and other things. This might make you take a mortgage deal without haggling or one you can't afford. Some mortgage lenders may want to let you know that the buy-to-let scheme is about to end. That's not true, though.
Discounts on "right to buy" can range from 32% to 70%. With council right to buy, you can get a discount based on how long you have been a council tenant and how much the maximum discount is in your area. There is a right to buy for both houses and flats.
After two years of renting a house, the discount is 32%, and it goes up by 1% for every year after that, up to a maximum of 60%.
- Flats get a discount of 44% after two years, and another 2% every year after that. The flats will get a 70 percent discount at most.
For the five-year plans (tenancy starting after 18th January 2005)
35 percent for houses and 1 percent for each year spent as a renter. The most that can be taken is 60 percent.
- 50% for flats, with a 2% discount for every year after the first. The most that can be taken is 70 percent.
In different parts of the country, the maximum discount allowed for the right to buy will be different. For example
GBP38,000 for London or the south-east.
- Eastern Region - GBP34,000
South-West: £30,000
North-West or West Midlands: 26,000 GBP
GBP24,000 for Wales, the East Midlands, or Yorkshire and the Humber
GBP22,000 for the North-East
A right to buy mortgage won't make sense for you if you live in sheltered housing for the elderly, if you only live there temporarily, or if the company you work for gives you a place to live.
In order to use the right to buy from the council, you would have to fill out some forms. With an RTB1 form, you ask for the right to buy something. After that, you will get an RTB2 form that tells you if you have the right to buy. Section 125 is a very important document that tells you how much you have to pay and what the rules are. Care should be taken to read this.
With the right to buy, you can buy a home at a price you can afford. Even though it's not easy to buy a house, it seems like a real possibility. Right to buy has made it easier for renters to stay in their neighbourhood and build communities with stable incomes. With the "right to buy," anyone can change their life in a social way.
