Generally, it is challenging to get a council house if you already own a property. It is because authority prioritises individuals who lack home ownership and struggle financially. Thus, homeless, financially poor and disabled may get a council house easily. Councils hosts allocation schemes according to the specific needs of the individuals.
If you own a property, you are highly unlikely to qualify. It reveals that you have a roof over your head and hence will not get the preference. This is especially true when you and your partner leverage a state pension or are nearing the stage. However, there are some exceptions to it as well. It could be selling your house before applying for a council one. But then, would it be legal to do so? The blog may answer such queries.
Who is eligible to buy a council house?
According to Right to Buy, here is who may qualify to buy a council house legally in the country:
- You don’t have any primary home
- Council home is your only home
- You are a secure tenant
- You have had a public-sector landlord (housing association or trust)
- Can provide a joint application of 3 members who have lived with you
- If your home used to be owned by the council but was sold out to another landlord or housing association. You can ask your landlord about this.
Do I need to sell my house to get a council house?
No, it is not necessary to sell your house to get a council house. You may qualify as a secured tenant or under a shared home ownership. Moreover, you may consider it if you have a particular disability that requires constant monitoring and upkeep.
However, if you decide to sell your house within 5 years under the Right to Buy scheme, you may pay more. Alongside, you may have to share the profit percentage.
You can also consider a shared ownership condition, wherein you invest 25 or 75% in the property. You pay rent for the rest of the amount.
How long does it take to buy a council house?
The time duration to get your council home depends on the availability and waiting list. There are not many shelter homes in the country. Moreover, the strict eligibility criteria delay the process. It is especially true when you buy a council house through the “Right to Buy” scheme. The council, however, must tell you about the expected duration it might take.
Such situations make one think- “How to get a council house quicker than the duration provided?” Well, you can get lucky if the following things happen:
1) You have got a new medical condition
Yes, you may qualify for the council home if you are diagnosed with an alien disease. It could be something that requires extra care and monitoring. However, you will have to provide valid proof of this.
2) The council makes a mistake
The council decides and segregates the bands of individual applications for council homes. You generally get band A-D. Here is the split of what it means:
- Band A- for households having urgent moving needs
- Band B- for households with high-priority
- Band C- for households with an identified housing need
- Band D- Households with no other housing need but exploring options for affordable social housing
Under this, A and B remain at the top of the priority list. Thus, if the council mistakenly puts you in D instead of B, then you may get the preference. However, the council may re-analyse the details and documents before doing that.
Alternatively, if on the waiting list, check for other councils’ availability. You can also check with a private landlord about renting an apartment. It is the quickest way to get a council home.
Can someone else buy a council home for you?
Most individuals have a general question of whether someone else can help them buy a council home. For example, you may be thinking, “Can my son buy my council house for me?” Yes, anyone known can assist you in buying a council house. It could be your spouse, son, or a legal partner. However, the legal ownership must be in the name of eligible tenants or family members on the application. You can add up to 3 family members who have lived with you for at least 12 years.
Besides, you cannot skip the affordability checks. You will be subjected to the same assessments as the other persons on the shared ownership. Check whether you can use your Right to Buy deposit on the mortgage. Some loan providers allow the use of the discount that comes with the right to buy as a deposit.
Always check who will be responsible for the payments. Yes, your family members may help you with that. However, that must not change the legal ownership. It should be in the name of the person who needs it, not as the beneficiary.
Simple steps to buy a council house for the first time
Buying a council house differs from a traditional home purchase. You need to be patient and updated on the research. Here is how to buy a council house legally:
- Step 1- Contact the council
Select the best council facilities that meet your requirements and contact them one by one. Express your interest in buying the property. Provide the details and the application form.
- Step 2- Wait for the response
The council will analyse your eligibility and contact for the meeting. They will get back to you with an offer that you may need to accept.
- Step 3- Check for the mortgage availability
One is highly unlikely to buy a council home with the available lump sum. Thus, start exploring the best mortgage rates as you approach council home purchase. You may get a favourable one if you have a running income, a fair credit rating, or an existing property. Check and apply with the mortgage providers that accept Right-to-Buy deposits. It is when you have it.
- Step 4- Instruct a conveyancer and surveyor
Instruct your conveyancer after receiving the buying offer. He will help you with the legal process of buying and selling the home. Later, contact the surveyor for the geographical analysis and mark the boundary for security purposes.
- Step 5- Complete the purchase
Once you have rechecked the papers, documents, and formalities, proceed. The council providers will deal with the conveyancer for financial proceedings. Later, the conveyancer will help you with the registry and liaise with the landlord on your behalf. It helps you arrange the completion date. You pay the remaining balance or the rent to the landlord. The person will then end your rental record. It makes you the owner of the property.
Bottom line
Thus, buying a council house requires you to uphold patience. You must improvise the purchase and know the criteria. Analyse whether are there better options over a council home if seeking investment purposes. Alternatively, check ways to catalyse the process. Identify whether your special condition makes you eligible for Band A and B.
If yes, contact the Council and get it checked. It automatically helps you get the council home. You can buy this if you shared accommodation with 2-3 people earlier. However, only one can be the legal owner.
Molly Harris, the professional loan officer and author having more than a decade of experience in her career. She has the passion of solving the problem of those who are looking for the best mortgage while visiting Shinemortgages. She works hard while searching for the best loan solutions tailored to her clients’ financial goals. From first-time home buyers to seasoned investors, Molly’s expertise and dedication cannot match anyone. One can read her research-based blogs here and get the proper guidance. Molly Harris has possessed Master’s degree in Finance field and currently pursuing doctorate research on the UK mortgage.
