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Council house mortgage

Council house mortgage is about obtaining funds to buy a house build under the right-to-buy scheme of the Government. Usually, those who are already living in the house as the tenant makes efforts to buy. There are also provisions for those who are not the tenant of a council house. The lower rates and better facilities in the proximity, such housing plans offer simplified ways of buying a home. In the absence of knowledge, the borrowers lose the right path of obtaining funds through the mortgage.

The confusion about the Government procedures and mortgage formalities create significant obstacles. We at Shine Mortgages take you through the process smoothly and bring our best lenders with the more straightforward system is always there to help you. Buying a council house is never difficult if you have the right type of assistance and we bring that for you.

Who can buy a council house through the right to buy scheme?

There are some terms and conditions applicable to the home buying through right-to-buy. These are –

  • You need to be the secured tenant of a right-to-buy landlord
  • As a secured tenant you can buy after spending at least 3 years in the house which makes him/her a public sector tenant
  • A public sector tenant is the one whose landlord is either one of the public bodies, or a right to buy landlord
  • Another condition is you can buy the house if it is the only property you have
  • The property should be self-occupied because buying from a friend or relative is not a practical thing

When you cannot buy a council house?

Few circumstances prevent the buying of a council house, and they are uncompromised because they are the government rules –

  • You cannot buy a home if the court has given the possession orders describing that you need to leave the house
  • You cannot buy with the following bankruptcy issues can also not apply
    • Undischarged bankruptcy
    • Bankruptcy petition pending against you
    • Have arranged with creditors

These conditions stop you even if you are a public sector tenant because the financial stability of the applicant is always necessary for the Government.

How to buy your council house – The basics

You every doubt on ‘how to buy your council house’ gets a straight answer with us. We guide you about all the technicalities of council house buying and mortgage and suggest best lending options available on our panel. When you pick a deal, we ask you to leave the rest of the things on us, and we manage everything from application to funding disbursement.

  • You apply through the local council, and you should know that you can also apply for a house on a location that is far from your current locality or area.
  • Every local council has its own rules, terms and conditions that are applicable for without any compromise.
  • You need to fill an RTB (Right-to-buy) application form where you need to fill necessary details
    • Complete address of the property you want to buy
    • Name of the landlord
    • Name of you family members (if they intend to share the responsibility in right to buy)
    • Name of all the members on the tenancy agreement
    • Detail of the property bought under the right-to-buy tenancy (if any)
    • Mention of any renovation or improvement or change you have done in the property during tenancy
    • Current address proof with a document where the address is mentioned.
    • Your name in the electoral roll, the Government wants only authentic applicants and for that applicant should be on the electoral roll.

Formalities after all the appointment

  • Take an appointment (every local council has decided days of appointment some give meetings on Thursday while some on Monday)
  • All the persons who have taken an appointment need to ensure their presence on the chosen day and place

What if you are not an existing tenant

Not every buyer is a tenant, and if you are among them, the formalities change a bit.

Following are the requirements for the applicants who are not living in a council house –

Three types of residency proof documents

  • One evidence when you apply
  • One evidence 12 months before you apply
  • One evidence 6 months before you apply

Note: You need to get into the council membership through an agreement that makes the buying process easier.

If you are not the tenant but married to a tenant or in a partnership

In such cases, you need two types of documents -

1) A copy of marriage certificate (in case of marriage )

OR

Civil partnership certificate (in case of a partnership)

2) One proof of residency

The above terms and conditions and documents are the basic requirements, but a little bit of change may happen depending upon the council location.

Can a relative buy my council house?

Technically it is not possible to let a relative buy your council house certain conditions stand in the way –

  • If the applicant is not on the agreement, it may be complicated to buy the house.
  • You can buy the house and then can give it to the relative through a will
  • To make things easier, you can share the relative can share the mortgage(if you have) responsibilities with you
  • You cannot sell the house until 5 years after the purchase. It is the first condition if you want to put council flats for sale.

The above are the decided conditions under the right to buy scheme, and it is usually a ‘NO’ for a relative if he wants to buy your council house.

How much can I buy my council house?

The council house prices keep changing according to the market conditions because after all, they are also the properties and the Government thinks about the cost part. However, one thing is sure that as compared to the private property market, the council houses are always much cheaper.

Currently, the property price is 0.2% down that means the total property market is down after covid-19. The average price of a house in the UK is £2,93000.

For council tenants, certain types of flexibilities apply to the current property price

  • If you are a tenant of the public sector from 3 to 5 years, you get a 35% discount on the total property value.
  • For those living in the council house for more than the 5 years the discount increases from 1%.
  • The maximum limit of the discount is 70%

Shine Mortgages calculates your discount percentage through thecouncil house discount calculator. We are equipped with advanced and smart financial tools to attain accurate results.

Note – On a house, you get a 35% discount, and on a flat, you get a 50% discount.

Can I buy a house with no deposit?

Indeed, you can buy a council house with no deposit as the equity generated through the discount of 35%, or more can be used as the deposit. The right-to-buy scheme was started with a precise aim. It is like a tool to help the housing association renters and council tenants to buy the house effortlessly on a much lower price. This is the reason that it is certainly possible to buy a home without any deposit. For the lenders the discount percentage works as the deposit, Shine Mortgages has lucrative options of such lenders with no upfront or hidden fee. We promise you to bring a stress-free and simple mortgage procedure.

Myths about council housing

People have many doubts about council housing, which sometimes make them the victim of prevalent myths. Here are the most common ones, take a look and avoid them if you are planning to buy a council house.

  • Council rents are too affordable – No, it is wrong. The rent for a council house is up to 80% of the market rent. It is unaffordable for most of the households, and they have to struggle for paying the rent.
  • Council housing is backed-up by subsidy – Another big myth. Council housing has no backing of government funding. It manages through the rent money received by the tenants and the sale of new build properties.
  • Councils now do not take proper care about the council housing – No, it is not like that. The council is always aware of its duties and still solves the concerns of the tenants of the properties.

Shine Mortgages believes in rational mortgage decisions, and for that, it delivers all necessary information to enlighten you. The above information is to help you take better steps in property buying. For the rest of the doubts or to get a good mortgage deal, you can always come to us. We are open and at your service 24X7.

Council House Mortgage FAQs

Can someone live with me in my council house

Yes, anyone can live with you in your council house, but that can affect your council tax and housing benefits. You will be reassessed depending upon the relationship with that person. The situation can affect your entitlement for all the related benefits, and an overpayment of council tax may apply. To prevent the situation, it is advisable to inform you about all the necessary changes.

How much discount will I get on my council house

There is a minimum and maximum limit of discount on council house buying. The minimum is 35%, and the maximum is 70%. To get the minimum benefit, you have to stay at least for three years in the house.

Can I own a house and live in a council house

The new rules are flexible now and they allow you to live in a council house despite another property in your name. However, that may put limits on the duration for which you can live and stay.

Can I sell my house to the council and rent it back

Yes, you can sell your house, and rent it back through the sale-and-rent-back scheme. But you can live in the house for a fixed time. Most of the sellers opt for this option when they are not able to manage their mortgage payments. Besides a few people do it because they need money for some personal reasons.

How long after buying a council house can you sell it

According to the current rules, you can sell a council house 5 years after purchase. This rule is strictly applicable and trying to sell the house before that can attract legal actions against the seller as well as the buyer.

Can my son buy my council house for me

Legally it is not possible. The buyer should be the one who is living in the house. To buy a council house, one needs to spend 3 years in the place, and only the prime residents can do that. However, if a son wants to buy a house for his parents, he can share the responsibility in the mortgage. However, the person (son) must live in the house for at least 12 months. The prime mortgage applicants will be the parents (or any one of them) only.