There are several schemes that are there to help people buy their own property that would otherwise not be able to do so. The Right to Buy Scheme should not be confused with the Rent to Buy as they are different schemes. Under the Right to Buy scheme, you can buy your home at a price lower than the full market value. This is because the length of time you have spent as a tenant entitles you to a discount.

Right to Buy has been around since 1980 and was brought in as a way for council tenants to purchase their property at a substantially reduced cost. This can be as much as £84,600 (£112,800 in London).  You can apply for the Right to Buy a council property if it is your main residence, you have a legal contract in place, you have no legal issues with debt eg a CCJ and you have been a public sector tenant for at least three years (this does not have to have been the last 3 years). Your property must be a self-contained unit with no shared facilities, such as a kitchen or bathroom.

Discount levels

There are different discount levels for houses and flats.

Houses – You get a 35% discount if you’ve been a public sector tenant for three years. The discount remains at 35% until you have five years public sector tenancy.

After year five, the discount goes up by 1% for every extra year you’ve been a public sector tenant, up to a maximum of 70% – or £84,600 across England and £112,800 in London boroughs (whichever is lower).

Flats – You get a 50% discount if you’ve been a public sector tenant for three years. The discount remains at 50% until you have five years public sector tenancy.

After year five the discount goes up by 2% for every extra year you’ve been a public sector tenant, up to a maximum of 70% – or £84,600 across England and £112,800 in London boroughs (whichever is lower).

Things to consider before deciding to buy

Buying your home is a big decision for you and your family. Your home can be an asset for you and your family in future years, and home ownership can give you more freedom, such as being able to make some changes to your home without needing your landlord’s permission. But it is also worth remembering that owning a home also brings some added responsibilities and you need to be sure this is the right choice for you and your family.

In order to take up the Right to Buy scheme, you may have to take out a mortgage. This is a long-term financial commitment and one that should be carefully considered. If you currently receive housing benefit to help with your rent, you cannot claim this for paying your mortgage. If you become a leaseholder by buying your flat or leasehold house, you will have to pay service charges each year, and may also have to meet the costs of major repairs and refurbishment which can be substantial. As the homeowner you are also responsible for all the costs involved in maintaining your home including all routing repairs or replacements to items such as your boiler, windows and roof. You will also have to pay for the costs associated with improving your home as well as any major structural repairs that may need to be done.

Should you have a change in circumstances and are unable to keep up with your mortgage or loan payments, you could lose your home. It is also worth considering  what would happen if you buy your home with other people, such as family, and their circumstances change.

If you are elderly and own your home, its value may be taken into account in assessing whether you are eligible for financial help with the costs of residential care.

Before you commit

Before borrowing money to buy your home, take time to consider all the costs involved and the choices available. You should get independent financial advice to help you decide whether buying
your home is the best option for you. The Money and Pensions Service is a free, impartial service, set up by the government, to help people make informed choices about managing their money.
You can get useful information from their website, www.moneyandpensionsservice.org.uk or you can telephone them on 0115 965 9570.

Compare the loan deals on offer before making up your mind. Get independent information by reading publications such as What Mortgage? or Your Mortgage, or talk to an independent
financial adviser.  Before agreeing to any offer or deal through a financial adviser, ask the adviser who they work for, whether they sell mortgages or other financial services, and whether he or she gets a commission for selling you a particular product.

Make absolutely sure that you understand what any deal means for you before signing.

Steps to take

Firstly, contact the people you pay rent to, the city council or housing association. They will have a form for you to fill in to see if you are eligible to access the scheme. If you are accepted on to the Right to Buy Scheme, the property will then be valued to give an appraisal of the market value of the property. You will then be informed of the offer being made under the scheme. It is advisable to have your own survey done on the property, a survey is not the same as a valuation, and it will give you a more informed picture of the state of repair of the property and flag up any potentially costly repairs. Avery & Co. are independent RICS registered surveyors who are able to carry out this work for you. If you decide to go ahead with the purchase you will then have to go through the conveyancing process.

There has been a pilot scheme running involving housing associations called Voluntary Right to Buy. The government have not made any announcement on whether this will rolled out yet at time of writing. In some instances where you were living in a council owned property and it was transferred to a housing association you may have a ‘Preserved’ Right to Buy. To find out more about the Right to Buy scheme and your eligibility visit: https://www.ownyourhome.gov.uk/scheme/right-to-buy/faqs/

If you need any advice regarding surveys or valuations, then please do get in touch, we would be happy to help. You can contact us via our contact page or on 0330 088 5040