What is Right to Buy?
The ‘Right to Buy’ is a government led scheme enabling those who currently rent their property from the council or housing association, to buy their property for a discount provided they meet the necessary criteria.
The Right to Buy scheme provides access to special mortgages, some of which do not require a deposit (although other fees may be needed upfront).
Am I eligible?
In order to qualify for the scheme, you must fulfil the following:
- Have lived in the property you are renting from the council or housing association for at least 3 years (this does not need to be consecutive).
- The property must be your main home and the council/housing association must participate in the scheme – NOTE not all do!
- You must have no outstanding debts with either the council or housing association regarding your obligations as a tenant.
- The property must not be for sheltered housing or for the benefit of elderly/disabled people.
- The property you live in cannot be a shared residence – it must have its own utilities and services i.e. no shared kitchens or bathrooms etc.
What does the scheme entitle you to?
The maximum discount available is currently:
- £110,500 for properties in London
- £82,800 for the rest of England
The discount starts from the time you become eligible, following a minimum of 3 years in occupation, and increases up to a maximum of 70% of the property price depending on how long you have lived in the property.
Note that Houses and Flats are treated differently and are broken down below:
The starting point after 3 years in occupation is a 35% discount. After 5 years, the discount increases by 1% for every additional year up to the maximum of 70%, or the values shown above, whichever is the lower.
The starting point after 3 years in occupation is 50%. After 5 years, the discount increases by 2% for every additional year up to the maximum of 70%, or the values shown above, whichever is the lower.
For further information please see the following government website to keep up to date with any changes that may occur.
Get in Touch
For further information, or an estimate of our costs and disbursements in acting on your behalf, please contact Alan Warnes who is Head of Residential Conveyancing at Barrett & Co on [email protected] or 0118 958 9711 and Alan will be happy to help you.