Right To Buy

restless6

Hi.
I have rented my council house for 11 years and have recently been thinking about buying it.

I have no idea where to start.
Am I free to seek a mortgage from anywhere or do you have to use special right to buy ones?

Any advice or anyone done it already?

Dave_Ham

I would suggest you speak with your Local Authority first, as typically they are the hardest work.

Once you know your numbers and have an offer, get yourself a mortgage broker as there are a few considerations.

Typically, you can use the discount as the deposit with most high street lenders although some of the specialist lenders do not accept right to buys

If you do proceed to purchase most LA's will impose a 5 year restriction where if you sell they will want the discount back.

Additionally some lenders can have an issue with getting a suitable valuation on a property that is an area of high concentration of Social Housing so just ba careful.

Good luck

restless6

Thank you.
I live in an area where most houses are not council and I would guess of those council houses, about a quarter at least have been bought.

I think on the open market my house is worth about 100,000 max. I know an identical one sold a few years ago for 110, but prices have gone down since.
I only wish I had bought it years ago instead of wasting all my money on rent!

I have tried emailing my housing association but they don't reply. I will have to write to them I think.

bigadaj

You haven't wasted much on rent as with social housing you have been heavily subsidised by the taxpayer. As you can tell I can't understand the logic of right to buy, particularly as the money never seems to be spent on new social housing, we are just reducing the pool of housing, thatchers legacy I suppose.

restless6

Yes the rent used to be quite heavily subsidised when the local council owned my house, but since it was took over by a housing association they are gradually increasing the rent to be in line with private rates.

This is why I am now considering buying as my rent as increased quite a lot of the last few years.

I think all new housing developments have to have a portion of social housing (housing association) but not in the form of big estates like in the past.
Whether that is a good thing or not is debatable.

kingstreet

Do you actually have a preserved right to buy, or do you have right to acquire? You need to contact the HA which will confirm this.

The procedure for a RTB means you need to complete a RTB1 form and forward it to your HA.They will carry out the necessary procedure to value the property and will issue a S125 offer letter. From that point, you have twelve months to arrange a mortgage and complete the purchase.

As mentioned, there are many lenders who offer RTB products. You need to conduct some research, or appoint a good independent or whole market broker to act for you.

Some brokers charge fees, particularly for smaller mortgages. We charge £249 and receive commission from the lender and around this level is reasonable for an advice, recommendation and arrangement service, in my opinion. Ask friends and relatives for a recommendation in your local area.

emran2486

Hi

I bought my house under preserved right to buy in Nov 2011, as kingstreet said fill in RTB1 form and send it off here is a link where you can get more information
https://www.gov.uk/right-to-buy-buying-your-council-home

I bought mine from a Housing Association but I was entitled to preserved right to buy.
With Housing association they try to put you off from buying the property well thats with most housing association (i know as I work for one). Make sure you dont give up and follow the steps.

Fill in the RTB1 and send it off any delays in the process from the Housing Association will result the Housing Assocaition to lower the price of the property.
If you need any help send me a PM and I can guide you.
I sent my RTB1 form in May 2011 and after getting alot of stress, headache, formal complaint and the Local MP got involved I completed the purchase in Nov 2011.