Right to Buy, a mortgage option that can help you out when you’re wanting to purchase your council property.
The scheme was introduced to help individuals living in council properties purchase the property they’re living in. As a Right to Buy mortgage applicant, depending on how long you’ve lived in the property, you may receive a discount on the property that you’re applying for.
This discount is likely to be used as your deposit, meaning you can organise your remaining savings to help with the rest of the process.
You may also be able to borrow money if you want to make home improvements for the property. Some lenders may allow this, but you will need permission from the Local Authority beforehand.
The Right to Buy scheme is simply a way to help council house owners take a mortgage out on the property they’re living in.
The first step to getting a Right to Buy mortgage is completing a RTB1 and finding out whether you’re eligible or not. If you’re unsure of how to do this, you can contact your local authority or a mortgage broker in Sheffield like us. We can help you get your right to buy process in Sheffield started.
Following this step, someone will arrange for a property survey to be carried out on your property. This means that the local authority can get a true value for your home and can work out the mortgage amount. You should also be able to access a Right to Buy discount on the property. This discount can be used for your deposit or used on solicitor, legal or arrangement fees.
Like the usual mortgage process, you’ll have to provide evidence that you can afford a mortgage and pass affordability assessments prior to being accepted. This is why it’s essential that you’re managing your finances well and being sensible with your money during the months leading up to your Right to Buy mortgage in Sheffield.
When taking out a Right to Buy mortgage, you’ll come across similar fees and costs that applicants taking out a regular mortgage come across:
In summary, Right to Buy presents a great opportunity to council house owners and gives them chance to get onto the property ladder. A scheme like this is something to look into if you’re thinking of buying out your council property.
You will, however, have to live within the property for a certain amount of time before you can sell it, otherwise, you’ll be issued with a penalty. This will be in the form of repaying a sum of money linked to the original property discount generously presented at the start of the process.
If you can afford to purchase your council home and can compensate for new costs such as property damages and repairs, the scheme could be for you. Remember that an affordability assessment will be carried out before you take one out, so make sure that you’re as prepared as you can be.
Date Last Edited - 15/09/2023