Q: What is Right to Buy?
Right to Buy was introduced in 1980, the Mortgage Shop advisers have been giving advice on these purchases since 1988, the shcme gives all eligible social housing tenants the right to buy their home at a discount price. Over the years, the discount levels have varied, making the scheme unaffordable to many tenants. Since April 2012, the Government has introduced major changes to Right to Buy, raising the maximum discount now available to £77,000 across England and £102,700 in Greater London.
In July 2014, the maximum percentage discount for a house was increased to 70% (in line with flats) and the maximum cash cap will now increase in April every year in line with inflation.
Over 22,500 tenants have become homeowners since 2012 and for the first time, receipts from additional sales are being reinvested into providing new affordable homes for rent.
Q: How do I know if I am eligible for my Right to Buy?
You probably have the Right to Buy if you’re a secure council tenant and have spent at least 5 years as a public sector tenant. The 5 years doesn’t have to be continuous and you can add together any time you have spent as a public sector tenant.
A public sector tenant is someone whose landlord is a public body such as a council, housing association or government department. Eligibility criteria also includes having no legal issues with debt or any outstanding possession orders. You should be aware that some properties are exempt from Right to Buy.
Q: I’m a Housing Association Tenant! Do I have a Right to Buy?
You might have. Most housing association tenants do not have the Right to Buy but if you were a secure council tenant and were living in your current home when it was transferred from the council to another landlord, like a housing association, then you may have a ‘Preserved’ Right to Buy.
If you do, then you can buy your home under the scheme in the same way as if you were still a council tenant. Your landlord will be able to tell you whether you have the Right to Buy.
NEWS UPDATE! Housing Association Right to Buy scheme.
The Chancellor has previously announced plans to extend the Right to Buy scheme to housing association tenants, he has now confirmed that from five housing associations have now started this process, make an enquiry and we’ll check if your Housing Association is included in this growing list of Right to Buy Housing Associations.
Make a no obligation enquiry
Q: Can my children or grandchildren use my Right to Buy?
Family members may be eligible to join in the Right to Buy with you. However, if they are not named on the tenancy agreement, they will need to have lived in the property for the past 12 months. There is nothing in law that specifies how a Right to Buy purchase should be financed.
A family member (or someone else) could provide the funding for the purchase. However legal ownership of the property can only be in the names of the eligible tenant/s and other eligible applicants.
Q: OK I have taken the Right to Buy my property what if I then decide to sell my home?
You are able to sell your home at any time, but if you sell your home within the first five years, the landlord has the right to ask for repayment of all or part of the discount. After five years, you can sell the property without repaying any of the discount you received. See below.
Right to Buy Discount Repayment Calculator
| If you sell within: | Proportion to be repaid: |
| The first year of purchase | The whole discount will have to be repaid |
| Second year | Four fifths must be repaid |
| Third year | Three fifths |
| Fourth year | Two fifths |
| Fifth year | One fifth |
| After Fifth year | Nothing to Repay |
Make a no obligation Right to Buy mortgage enquiry or SPEAK TO US 365 DAYS A YEAR ON 01707 662 882