Buy Your Council House Under the Right to Buy Scheme
If you have been a Local Authority tenant for a while, you may qualify for the Right to Buy. Not only will you receive a discount from the open market value if you decide to go for it, but that also acts as your deposit. The only cash you will need to find is for your fees. In any case, some Lenders will allow you to borrow additional money for Home Improvements. Just bear in mind the Local Authority must permit you to do the works.
What is a Right to Buy in Bristol?
The Right to Buy Scheme is a government ran a scheme that allows eligible tenants in England to purchase their property from the council for a partially discounted price. If you have spent at least three years (not always continuous) renting from a local housing association and are secure tenants of council property, you may be eligible for the government’s Right to Buy Scheme.
When purchasing a property via Right to Buy, the property will get valued at the full market price with the government discount applied before purchase.
How is the discount worked out?
The percentage of this discount depends on varying factors, such as location and the length of time you’ve been a council tenant. One advantage of the Scheme is that due to the discount, there is often equity in the house already. How much equity, like the discount, also depends on varying factors. These include how much your deal is and the value of the property.
Additionally, we find that those who utilise the Right to Buy Scheme are usually First Time Buyers in Bristol. We love working alongside our customers and are here throughout every step of the mortgage process, starting with your initial enquiry, all the way through to your completion. Capital raising options for home improvements, such as a new conservatory, windows or extension are also available with some of our mortgage lenders.
How to obtain the application form?
If you want to get a Right to Buy Mortgage, first you need to see if you qualify to buy the property. You need to obtain an application form (RTB1), and then the Local Authority will send someone out to value your property to let you know how much it is worth. They will then calculate the percentage discount you are entitled to and write to you to offer you the chance to proceed.
The amount that you can borrow gets calculated in the same way as any other mortgage and gets based on your income and expenditure. Hence, it’s essential that you cut out any unnecessary spending, such as unused subscriptions and memberships before making an application. You should also check your credit score online.
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