HelpToBuy - with Right to Acquire?

davels

Hello,

I currently rent a social housing property which I'm trying to buy under the Right to Acquire scheme. I had gone through a provisional mortgage application with Barclays which I was accepted for... I went back today to finish it off, and I was told that because it's Right to Acquire, they cannot proceed with the mortgage application.

There was no documentation to qualify the statement, the best they could show was that under Right to Buy, you need a 10% deposit so can't do one of the 95% HelpToBuy morgages.

Anyone had similar experiences or have any advice...? Thanks all.

Disappointed,
Dave

Wh05apk

Find another lender who does not require you to use your own funds as deposit.

davels

any suggestions or pointers?

Senior_Paper_Monitor

Help to Buy is not combinable with right to buy or right to acquire.


There are lenders who will count to acquire discount as all/part of deposit, but not all right to buy lenders accept the right to acquire discount as part of the deposit.


Woolwich always require 10% of the discounted purchase price as deposit.


Be careful about making random applications as this will build up unnecessary credit searches and ultimately not improve your chances.

leveller2911

Think there is some confusion somewhere here. When a tenant has the Right to aquire it's the right to purchase the property at the full market value with no discount. If it's Right to Buy there will be a discount.
May be an idea to clarify with the landlord.

Senior_Paper_Monitor

I think not Mr Leveller .............

Either £75K or £100K max discount (+ new RPI figure) on RTB depending upon area / Between £9K and £16K discount on RTA depending upon area.

leveller2911

Senior_Paper_Monitor wrote: »

I think not Mr Leveller .............

Either £75K or £100K max discount (+ new RPI figure) on RTB depending upon area / Between £9K and £16K discount on RTA depending upon area.

Thats strange Mr SPM , friends of our applied to buy thier house under the RTA and were told that the price they would pay would be the "full market value with no discount". This was through Sanctuary Hereward Housing Association.

It would suprise me in the slightest if they were given incorrect information due to the complete incompetance of the employees of Housing Associations that I have met over the past 30 years.... Which is in the low 100,s .

We don't qualify for RTA (happy to pay fmv) purely because our house was built in 1993. Properties built between 1989-1997 do no have the RTA so we have been told by the HA and 2 solicitors.

Senior_Paper_Monitor

I process RTB and RTA (to a much lesser extent) mortgages by the handful and did all our research on the same - not everyone qualifies for RTA and it doesn't apply to all housing associations (https://www.gov.uk/right-to-acquire-buying-housing-association-home/overview / http://www.mortgage4righttobuy.co.uk/index.html/html/right-to-acquire.html).

leveller2911

Senior_Paper_Monitor wrote: »

I process RTB and RTA (to a much lesser extent) mortgages by the handful and did all our research on the same - not everyone qualifies for RTA and it doesn't apply to all housing associations (https://www.gov.uk/right-to-acquire-buying-housing-association-home/overview / http://www.mortgage4righttobuy.co.uk/index.html/html/right-to-acquire.html).

Typical, my house was built too early........:D

Government policy changed appparently around 1997 hence we don't qualify.......

You must have the patience of a saint if you deal with Housing Associations on a regular basis, you have my deepest sympathy Mr SPM..