Right To Buy Mortgage
Right to buy is another Government back scheme to help people get on the property ladder which in turn fuels the economy. The scheme was introduced in 1980 and has seen major changes introduced since April 2015.
The scheme is aimed at council tenants who wish to purchase their council property as well as housing association tenants. The property is valued and a discount is applied based on various factors including how long you been a tenant with a public sector landlord, the value of your home and the type of property.
Before buying the property you must seriously consider whether you have the fees available to buy the property and if you need a mortgage it should be affordable. If you do buy then please be aware that you will have to pay back all or some of the discount if you sell within 5 years of purchase. Once you have owned the property for 5 years or more you will be able to sell the property without reclaim of any discount by the council and buy elsewhere if you want.
The process starts with submitting a form to your public sector landlord of Local Authority. You will receive an answer within 4 weeks whether you can buy the property. If your landlord agrees then a formal offer must be sent to you within 8 to 12 weeks dependent on whether the property is freehold or leasehold.
You have 12 weeks to accept the offer and once you accept you will have to instruct a solicitor to take care of the legal aspect and also a mortgage adviser to arrange the mortgage.
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