Right to Buy Guide
Overview
The Right to buy scheme is a available in the United Kingdom which gives tenants of council housing the right to buy the home they are living in. Currently there is also a right to acquire for the tenants of housing associations.
How they work
The sale price of a council house is based on its market valuation but also included a discount to reflect the rents paid by tenants and also to encourage take-up. The legislation gives council tenants the right to buy their council house at a discounted value, depending on how long they had been living in the house, with the proviso that if they sold their house before a minimum period had expired they would have to pay back a proportion of the discount.
The Right to Buy rules were changed in 2005. Five years' tenancy is now required for new tenants to qualify, and properties purchased after October 2004 can no longer immediately be placed on the open market should the owner decide to sell. Such owners must now approach their previous landlord (Registered Social Landlords RSLs) and offer them 'first right of refusal.' If the RSL is unable to offer a realistic purchase price, then that landlord still has the right to offer the property to an alternative RSL.
All RSL's are now legally obligated to offer Right to Buy advice. The time in which Right to Buy conveyancing should take place has been reduced from 12 months to 3 months. The Financial Services Authority now governs and regulates most types of mortgage-selling.
The sales are an attractive deal for tenants and hundreds of thousands of homes have been sold using the Right to Buy Scheme.
The overall cost for comparison is 7.2% APR. Actual rate available will depend upon your circumstances. Please ask for a personalised illustration . Rate correct as of 27/03/2008
At North Mortgages our Mortgage Experts will take care of everything on your behalf. Remember, we source mortgages from the whole of the market, so you know your getting the best deals available and all tailored to suit your personal circumstances.
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