Right To Buy 

The Right to Buy scheme is a great way for you to own your property you rent through the council or housing association. 
The Right to Buy scheme allows tenants of council housing and housing associations an option to buy the property they are a tenant of, at a discounted price to the value of the property. 
 
The reduced price from what they have valued the property at, can be used as the deposit to the mortgage lender. You may also be able to look at borrowing extra money from the discounted price that will allow you to carry out home improvements to your home. The scheme was introduced in 1980 and so far helped over 1.5 million homes be purchased through it. It is a great way to get you on the property ladder and own your home at a reduced price. 

Things to consider 

If you sell the property within 10 years of purchasing through the Right to Buy scheme, you must offer the property first to the old landlord or another social landlord in the area. The property should be sold at full market value and agreed between you both. 
 
If you sell within the first 5 years of buying it then you will have to pay some of the money back from the discount. 100% in the first time. 
80% in the second year 
60% in the third year 
40% in the fourth year 
20% in the fifth year 
 
The amount you’ll need to pay back will be dependent on the value of the your home when you sell it.  

FOR EXAMPLE 

You purchase the property for £100,000 and received a 40% discount (£40,000). You then sell the property for £120,000 after 18 months. 40% of the £120,000 which would be £48,000 and as you were in the second year, you will have to pay back 80% of the £48,000 which would be £38,400. 
 
Potentially you may not have to pay any of the discount back if you transfer the ownership of your home to a family member. Speak with the previous landlord first and a solicitor will help you. 
WE CAN HELP YOU OWN YOUR HOME 
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