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Under the government’s ‘right to buy’ scheme, council tenants are entitled to purchase their property at a discounted price. You may be eligible if you have been a council tenant for at least two years (or at least five years if you moved into your council-rented property after 18 January 2005). The amount of discount available varies on a sliding scale according to how long you have been a council tenant. You’ll get 35% off the market value of the property if you’ve lived in your council house for over five years, but up to 50% off if you’ve been renting from the council for over 20 years. However, there are limits to the size of discount available in different areas, varying from around £15,000 to approximately £40,000. Think carefully before deciding whether to buy your council property. A house purchase is a major financial commitment and you should obtain advice from a professional financial advisor before making any decision. Something to bear in mind is that you may have to repay some or all of the discount if you sell your home within three years after purchasing it (or within five years if you became a tenant after 18 January 2005) – so this scheme is intended for long-term purchases. To apply for a council right-to-buy property purchase, contact your local council landlord who will assess your eligibility and send you letter outlining whether you qualify and if so, the terms and conditions that you will be offered, including the discount amount you will be offered, the price the council expects you to pay and details of any structural problems with the property along with any estimated costs of repair or maintenance. This letter is known as a ‘section 125’ letter. You can request a valuation from the District Valuer if you believe the price you’ve been asked to pay isn’t appropriate, although if this report states a higher property value than that given originally by the council, it is the increased valuation that must be used. There are various mortgage lenders that specialise in providing ‘right-to-buy’ mortgage products and services to help people purchase their council properties – even those who have a bad credit history or are subject to a county court judgement (CCJ) or individual voluntary arrangement (IVA). This article is copyright protected and is not for republishing |
