Lockhart Grey Financial Planning Ltd

The UK is a nation of homeowners and we all have to start somewhere. Buying a house is one of the most important purchases you will make. At Lockhart Grey Financial Planning, we will help source the mortgage lender and product that best suits your own individual circumstances.  If you require we can also arrange the legal/conveyancing service for you and arrange any surveys required to be carried out.

Since 1980, if you are a tenant living in a local authority/council-owned property then you have the right to purchase the property at a discount, the size of which depends on the length of your tenancy.  In introducing Right to Buy legislation, the Government’s aim was for decent, affordable housing for all and promoting social cohesion, well being and self-dependence.

You may also be eligible to those assured tenants of registered social landlords/housing associations who previously held secure tenancies with local authorities.  You have to have held a tenancy for at least two years (five years for tenants who took up their tenancies after 18 January 2005).  It is open to nearly everyone who can afford it and who are currently a tenant with a Right to Buy landlord.

You can only be purchase under the right to buy scheme if your house or flat is a separate home and is your only home.  It may be possible to purchase under Right to Buy legislation jointly with family members who have lived with you for the past 12 months, or with someone who is a joint tenant with you.

Buying your council house is a sound and sensible investment. Look at the advantages:

•    No deposit to find
•    Instant equity in your home
•    Borrow extra for home improvements
•    You already know your neighbours!!

We can also arrange Right To Buy mortgages if you have had previous credit problems, rent arrears or have difficulty proving your income. Your mortgage finance will depend on your own financial situation.

Preserved Right to Buy

As an assured tenant of a registered social landlord, such as a housing association, you would not normally have the Right to Buy.  However, if you were previously a secure tenant of a local authority and went on to become an assured tenant after your home was transferred to a registered social landlord, you may have an entitlement to a Preserved Right to Buy. This applies if you were living at your home on the date on which it was transferred. It may also apply if you then move to another property owned by the new landlord. It does not apply if your landlord changes again.  The discount you may receive is similar however your Landlord will be able to inform you what discount limit applies to you.

Repayment of Discount

In the event that you sell your property sell within the discount repayment period you will usually have to repay some or the entire discount you received on the purchase of your property.  The amount you repay will depend on when you made your application to buy.  If you applied for your Right to Buy before 18 January 2005 and sell within 3 years of buying your home then in year one the whole discount would have to be repaid, year two would be and two thirds would have to be repaid and year three one third would have to be repaid.  You may sell your property whenever you wish however remember the time scale and repayment penalties stated.

If you applied for your Right to Buy after 18 January 2005 and sell within 5 years of buying your home then in year one the whole discount would have to be repaid, year two  and for fifths would have to be repaid, year three and three fifths would have to be repaid., year four and two fifths would have to be repaid and year five one fifth would have to be repaid.  In addition, the amount of discount you would have to  repay if you sell within 5 years of purchase will be a percentage of the resale value of the property, not on the original discount you received, disregarding the value of any improvements.

Certain sales or transfers are exempt from the requirement to repay  the discount, however in relation to this or any other query you may have regarding the Right to Buy scheme, contact your landlord (the organisation you pay rent to or have a tenancy agreement with) first.

Buying a house can be a stressful period in anyone’s life, here at Lockhart Grey Financial Planning we aim to make the process of obtaining the Right to Buy mortgage as easy as possible.

Lockhart Grey Financial Planning have access to exclusive Right to Buy mortgage packages through numerous different lenders at any given time, many mortgage packages that are exclusive to professional mortgage brokers and not available to members of the general public.

Please fill in our quick enquiry form, or call us for a free, no obligation, consultation. You may also find our mortgages glossary useful to explain some of these terms.

Remember it is in lenders’ interest to provide you with a mortgage, as long as they do not feel you are stretching yourself.  They want your business.  A mortgage is generally a lower risk to them, compared to a personal loan, or a credit card, as they always have the house to “secure” the loan against if you are unable to make your payments.