No deposit. No problem. You could have the Right to Buy.
If you live in a council-owned property, the Right to Buy scheme gives you the legal right to buy your home at a heavily discounted price. This discount can then be used as the deposit. For example, if the property is valued at £200k and the council sells it to you for £130k, you’ve effectively got a deposit of £70k.
Am I eligible for Right to Buy?
You can apply to buy your council home if:
- it’s your only or main home
- it’s self-contained
- you’re a secure tenant
- and you’ve had a public sector landlord for 3 years (it does not have to be 3 years in a row)
How much discount do I get?
This varies based on the location and property type. If you live in London boroughs, the discount is higher.
If you live in and want to purchase a house, you get a 35% discount if you’ve been a public sector tenant for between 3 and 5 years. After 5 years, the discount goes up 1% for every extra year you’ve been a public sector tenant, up to a maximum of 70% or £87,200 across England and £116,200 in London boroughs (whichever is lower).
If you live in and want to purchase a flat, you get a 50% discount if you’ve been a public sector tenant for between 3 and 5 years. After 5 years, the discount goes up 2% for every extra year you’ve been a public sector tenant, up to a maximum of 70% or £87,200 across England and £116,200 in London boroughs (whichever is lower).
What do I need to do next?
If you’re eligible for the Right to Buy discount you could be on your way to owning your home. Here are the 5 key steps you need to follow.
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Fill in an application form
Ask your landlord for an application form (RTB1). Fill it in and send it back to them.
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Confirm eligibility
Your landlord has up to 4 weeks to reply confirming whether you have the Right to Buy (this is 8 weeks if you have been with your current landlord for less than 3 years).
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Receive an offer
Your landlord then has up to 8 weeks to send you an offer notice for a house or up to 12 weeks for a flat. This offer notice, which is known as a S125 notice, sets out:
- their valuation of your property, your discount, the price you’ll pay
- any structural problems they know about
- any terms and conditions
- For leasehold properties only, the S125 offer notice will also include an estimate of the service charges that you will need to pay over the next 5 years
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Over to you – mortgage, survey and get advice
You have up to 12 weeks to accept your landlord’s offer. It’s during this time that you’ll need to arrange a mortgage, get a survey and hire a solicitor for conveyancing, etc. We can help with all of this.
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Complete the purchase
Once you’re happy with your landlord’s terms and have arranged how you will pay for your home, carry on and complete your purchase.
It’s usually during this time that you pay your stamp duty, etc, finalise the paperwork and sign the contract.
You are now a homeowner!
Speak to one of our mortgage advisers who can help find a lender that accepts the discount deal and also offers the other features that’ll meet your needs.
*https://www.gov.uk/right-to-buy-buying-your-council-home