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What is the Right to Buy scheme, and how does it work?
The Right to Buy scheme allows council and housing association tenants to buy their homes at a discount below market value.
The level of discount will depend on the length of time you have lived in the property.
One of the main benefits is that you can use the discount towards your deposit and in some cases are not required to provide any deposit at all.
For example, if a buyer is offered an £80,000 discount on a £250,000 property, the net purchase price is, therefore, £170,000. Assuming the buyer can secure a mortgage at this level they may not need any deposit at all. However, they can use their own funds towards the deposit in addition to the discount.
How much can I borrow on a Right to Buy mortgage?
The affordability of a Right to Buy mortgage is no different to that on any other residential mortgage and will depend on your own individual circumstances.
As a rule of thumb, lenders will typically lend between 4.5-5 times your income, however, this can vary significantly depending on your income, outgoings, age and deposit.
What if I sell my Right to Buy home?
If you sell your Right to Buy home within 5 years of buying it, you will have to pay back some of all of the discount. The amount you pay back depends on the value at the time you sell.
The total amount you need to pay back reduces throughout each of the 5 years, if you sell in the first year, you would be required to pay all of the discount back. If you were to sell in the second year, this reduces to 80% of the discount, then 60/40/20% in the following years.
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If, however, you transfer ownership to another member of your family, you may not be liable to repay the discount.
Who qualifies for the Right to Buy Scheme?
The Right to Buy scheme is for local authority tenants who have been eligible tenants for at least 3 years. There is a simple quiz to check your eligibility on the gov.uk website, or you can phone the government’s Right to Buy agent service to check. To be eligible, you must own any other properties.
What’s the process if I do qualify for Right to Buy?
Firstly, check your eligibility, and if you’re eligible, you’ll need to claim the ‘notice claiming the Right to Buy’ application form, known as an RTB1 form. If you’ve been accepted, you’ll need to have your property valued by a surveyor from your local council.
The council will then confirm the discount you are entitled to and the final purchase price. A formal offer would then be issued. If you accept the offer, you will then need to look into arranging a mortgage and instructing a surveyor and solicitor.
What’s the discount?
The discount available will depend on the value of the property. If you are buying a house or a flat and how long you’ve been a tenant with a public sector landlord.
The discounts are capped at £87,200, except in boroughs in London where it is £116,200.
This handy calculator will help you calculate the discount available to you.
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If you live in a house
If you are buying a house, the discount is up to 35% if you’ve been a public second tenant for 3-5 years. After 5 years, the discount goes up 1% for every extra year you’ve been a public sector tenant. This is capped at the regional thresholds as above.
If you live in a flat
If you are buying a flat the discount is up to 50% if you’ve been a public second tenant for 3-5 years. After 5 years, the discount goes up 2% for every extra year you’ve been a public sector tenant. This is capped at the regional thresholds.
Can I rent out my Right to Buy home and if so, how long do I need to wait to do so?
There are no legal restrictions preventing you from letting a Right to Buy property, and in theory, you could let the property out immediately following completion. However, if you have bought with a residential mortgage, you will need to obtain consent to let from the lender. They may not grant permission or have a minimum period of time; you must have lived in the property first.
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Ashley Oldershaw2025-03-12Trustindex verifies that the original source of the review is Google. We worked with Jack, who was very clear in his explanations, spent some time learning about our situation and presented us with our options and the pros and cons of each. He was also very proactive and understood that this was unfamiliar territory for us. Jack made sure that he did everything he could to provide a smooth process from start to finish, which helped us out a lot. Thanks, Jack! Farshad Farzaneh2025-03-11Trustindex verifies that the original source of the review is Google. Jack Johnson is the mortgage broker we used from Strive mortgages and he has been very helpful and an absolute easment for the whole process of getting a mortgage. He's easy to get hold of and makes plenty of time for his clients. He has useful contacts across the industries (banks and estate agents) which can be helpful in many circumstances, especially for quick answers and resolutions to problems. Mark Williams2025-03-11Trustindex verifies that the original source of the review is Google. Jamie has been consistent in providing me with an excellent service over many years, so I wouldn't dream of using anyone else. I've also recommended him to friends and family. Peter Macciochi2025-03-11Trustindex verifies that the original source of the review is Google. James has always been detailed but extraordinarily helpful. Always get the best advice and deals out there - simply do not go anywhere else !! Matt Ploszajski2025-03-08Trustindex verifies that the original source of the review is Google. They did a great job arranging our mortgage. Very supportive and talked us through everything very clearly. Polly Alice2025-03-08Trustindex verifies that the original source of the review is Google. Highly recommend the service. Jack was a great help answering any questions I had about the process. Great value for money, and makes the whole process less daunting. Samantha Kilford2025-03-05Trustindex verifies that the original source of the review is Google. I highly recommend Jack and the team at Strive Mortgages. As a first time buyer, I was entirely clueless and Jack has been incredibly helpful at de-mystifying the entire process. Everything has been efficient and as stress-free as possible. A real top-notch advisor, Jack is always available to answer questions and provide expert guidance - I couldn't ask for more! mark slade2025-03-02Trustindex verifies that the original source of the review is Google. Absolutely fantastic. On your side right from the start. I will be recommending Strive Mortgages at every opportunity. Thank uou so much!! H W2025-02-25Trustindex verifies that the original source of the review is Google. Very professional and efficient service that always has your best interests at heart. They set up a WhatsApp group to enable my wife and I to have seamless and rapid communication with the broker on both the mortgage application process and any general queries we had in relation to mortgages. I would highly recommend them to anyone looking to take the stress out of moving. R A2025-02-25Trustindex verifies that the original source of the review is Google. Jamie and his team at Strive Mortgages have been fantastic from start to finish. The process was so smooth and efficient. Jamie was always so easy to get a hold of to answer any queries we had and ensured we were happy and comfortable throughout. Id highly recommend anyone to use Strive Mortgages and will certainly continue to use Strive for all our mortgage needs!
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For more information on the Right to Buy scheme, please contact a member of the Strive team, by emailing [email protected] or call us on 01273 002697.
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