The Right to Buy scheme allows most council tenants the opportunity to buy their homes and will be offered a discount. The best way to see if you qualify to “buy my council house” is to visit the Right to Buy website.
Can I buy my house while on benefits?
Specialist mortgage lenders available through mortgage brokers, do offer the right to buy mortgages where clients’ income can solely be benefit-based. You must get advice in this area to confirm you know all the risks associated with this, for example, as a council tenant you will always have a home – but if you fail to repay a mortgage, you could be repossessed and lose your home.
Here is an essential quick overview….
Step 1 – Look online (Rightmove / Zoopla) to see what your property may be worth.
Step 2 – Visit the Right to Buy Calculator website to get an idea of how much discount you may be entitled to.
Step 3 – Most applicants will need a mortgage, so speak to a qualified mortgage adviser who is experienced in helping people purchase their property through the Right to Buy scheme.
Step 4 – Contact the government’s Right to Buy Agent Service who will talk you through the process and tell you which forms to complete.
Step 5 – The council will value your property.
Step 6 – The council will issue you your right to buy paperwork confirming the property value, discount available, the purchase price, and any other ongoing costs, i.e. service charges (if you live in a flat for example).
Step 7 – You have to sign the forms and return them to the council if you wish to proceed with the Right to Buy.
Step 8 – Apply for the mortgage. The mortgage lender will require documents such as payslips, bank statements, Proof of Identity, etc. A mortgage valuation will be required. You will need to appoint a solicitor also.
Step 9 – Once the mortgage lender has completed all their underwriting and is happy with everything, they will issue a Mortgage Offer.
Step 10 – The solicitor will carry out their due diligence on the transaction, and liaise with you, the council, and the lender to bring the deal to a completion date.
Do I need a deposit when purchasing a council home?
The discount that the council is giving you, can be used as your deposit. Most high street lenders and building societies require you to put down a deposit of 5%. However, more specialist lenders are happy to simply use the deposit from the council, and you do not have to put a deposit down yourself. Please note you will need some savings to pay for a solicitor, valuation fee, and any broker fees.
How much can I buy it for?
While applying for the Right to Buy, the council will value your property and then confirm the discount they would be willing to offer you. If you want a rough idea of the values, you can look online to see similar properties in your local area to get an idea of their value. If you visit the government’s Right to Buy Calculator, you can get an idea of the discount you would be entitled to. Once you have an estimated market value of your property and a sense of your discount entitlement, you may need a mortgage to help fund the purchase – so here you should seek advice from a qualified mortgage adviser who can look at all the Right to Buy mortgage products in the market.
DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.