Right to buy is one of the most
popular policies that have a profound social impact
increasing the owner occupancy. Right to buy schemes
introduced in 1980 has given the right to tenants
to buy their property at discounted rates. More than
five million council right tenants have become homeowner
through this scheme. You can be a part of the “most
important social revolutions of this century”
by endorsing council right to buy scheme.
If you are a secured tenant of
• a local authority
• London borough council
• Housing action trust
• Registered landlord (non charitable)
APPLY
HERE FOR A RIGHT TO BUY
Then you are legally capable of buying the house
under the Housing Act. Buying a home can be expensive.
Right to buy mortgage can help you meet the cost of
home. For right to buy a council tenant needs to have
two years public sector tenancy. A new council tenant
that is if the tenancy began on or after 18th January
2005 will require minimum five year tenancy.
Before
going to right to buy mortgage, calculate the amount you have
to pay for right to buy. Most lenders will provide 95%-100% of
the right to buy amount. To find such a lender you will be required
to do some research. There will be lenders who offer specialized
right to buy mortgage products.
Start the day you get council right to buy offer. The time spent
on research will be the time well spent. There are companies who
may try to contact you with plans to aid you with council right
to buy scheme. They may offer all in one packages including mortgage
and home improvement etc. this may lead you to take a mortgage
deal without bargaining or one that you can’t afford. There
may be mortgage lenders who want to tell you that buy to right
scheme is nearing closure. That is, however, not true.
Discounts available on ‘right to buy’ can be anywhere
between 32%-70%. The discount available with council right to
buy is dependent on how many years you have spent as council tenant
and the maximum discount limit of your area. Right to buy is available
for both houses and flats.
• For houses the discount after two years is 32% and will
add 1% for every addition year of tenancy with an upper limit
of 60%.
• Flats have discount of 44% after two years and additional
2% for every year. The maximum discount for flats will be 70%.
For the 5 year schemes (tenancy starting after
18th January 2005)
• 35% for houses and 1% for each year spent as a tenant.
The maximum limit is 60%.
• 50% for flats with 2% discount for every extra year. The
maximum limit is 70%.
There will be different maximum discount limit for right to buy
in different areas. For example :
• London or south-east - £38,000.
• Eastern Region - £34,000
• South-West - £30,000
• North-West or the West Midlands - £26,000
• Wales, the East Midlands or Yorkshire and the Humber -
£24,000
• North-East - £22,000
A right to buy mortgage will not make sense to you if your home
is sheltered housing for elderly, only temporary accommodation,
or your home is provided by the company you are working with.
APPLY
HERE FOR A RIGHT TO BUY
Council right to buy would require some documents to be filled
as part of the application process. With an RTB1 form you make
an application for right to buy. After that a notice form RTB2
form is sent to you telling whether you have right to buy. An
important document called Section 125 tells you about the price
you have to pay and the terms and conditions. This should to be
read carefully.
Right to buy is an opportunity of becoming a homeowner at affordable
rates. It is not easy to become a homeowner but it seems like
a realistic possibility. Right to buy has encouraged tenants to
remain in their neighbourhood and construct stable income communities.
With ‘right to buy’ any individual can hope to transform
his or her life socially.
Summary:
Right to buy is an attempt to build stable income communities
by giving people right to buy. Not every loan lender will offer
you right to buy but with research you will be able to find lenders
offering specialized products. Right to buy legally enables you
to buy your home, if you are a council tenant, at discounted prices.
The discount is available on both houses and flats and will be
calculated keeping in mind the term of your tenancy.
Amanda Thompson holds a Bachelor’s degree in Commerce from
CPIT and has completed her master’s in Business Administration
from IGNOU. She is as cautious about her finances as any person
reading this is. She is working as financial consultant for decideloans
.To find a Personal loans,bad credit loans,Debt consolidation,home
equity loans at cheap rates that best suits your needs visit www.decideloans.com
