Question

The right-to-buy scheme is significant support for the homebuyers in the UK, which creates curiosity among people. They want to know many things about it to explore the possibilities of buying their own roof.

Here are several common questions that people ask about the right-to-buy scheme –

QUESTION – What is the right-to-buy scheme?

ANSWER – Right-to-buy is a government scheme, which was introduced in 1980 to help the social housing tenants buy their council house at a considerable discount. The plan aims to support the people with lower income, purchase their own home on affordable prices. To buy the home one needs to stay at least for three years.

QUESTION – How much is the discount?

ANSWER – After the latest changes issued on 6 April 2020, the discount in right-to-buy is £84,200 in England. For London, the maximum limit is £108,000. Every year, in April, the discount percentage increases depending on the increase in inflation.

QUESTION – In What Situations I Cannot Use The Right To Buy?

ANSWER – In certain conditions, you are devoid of the right-to-buy scheme. They are –

  • When there is a shortage of housing
  • If bankruptcy charge has been issued on your name
  • If the house is reserved for the elderly people or the disabled
  • If you come from another location, the council gives importance to the local applicants

QUESTION – How can I apply for the right to buy scheme?

ANSWER – Following is the process to apply for right-to-buy –

  • Ask your landlord to provide a right-to-buy form.
  • The landlord gives a reply within 4 weeks
  • The landlord sends an offer if the answer is YES
  • In case it wants to deny, there should be a due reason.
  • After receiving acceptance from the landlord, you can start seeking for a mortgage.

QUESTION – From where I can get a right-to-buy mortgage?

ANSWER – You can get the right-to-buy mortgages from either a mainstream lender or a private lender. Both types of lenders offer this mortgage; however, not all the lending companies have this product. It can be difficult for you to find out which mortgage provider offers right-to-buy products. In that case, a mortgage broker may help to find the right choice.

QUESTION – Is it necessary to give a deposit for a right-to-buy mortgage?

ANSWER – No, it is not. It depends on the policy of the lender, which may or may not ask you for the deposit money. But the lending companies that do not ask for any down payment, leave the decision on your choice. If you want to make the deal less bulky and borrow less, provide an advance payment. The mortgage providers that do not demand any sum of money on this part consider the discount part as the deposit.

QUESTION – Is it possible to make a joint application through right-to-buy?

ANSWER – Yes, it is possible to apply jointly for a right-to-buy scheme but only in certain conditions. They are –

  • Apply with a person who is with you on the tenancy agreement
  • The joint applicant is your spouse or civil partner
  • Apply with a maximum of three family members, but only if they are living with you for 12 months before you apply for the scheme.

QUESTIONS – I have exchanged my house with another tenant. Will it affect my right-to-buy?

ANSWER – Two conditions happen when you exchange a council house.

  1. Exchange of house with different landlords(it naturally changes your housing association and location.)
  2. Exchange of house with the same landlord

After changing the council house, you retain the tenant history, but in the new home, it is considered as the new tenancy. In such conditions, you may lose the right-to-buy. But, it is better to take expert advice on this matter and do not jump on any conclusion with incomplete knowledge.

The right-to-buy scheme is a vast field, and the above are the answers to the common questions. When you apply for it, new situations may cross your way. But don’t worry, there is a response available to every doubt.