What is a Right to Buy Mortgage ?
Right to Buy is a government scheme launched to help housing association tenants get on the property ladder. Once you have been a tenant for 5 years or more you may be eligible to buy the property that you are currently renting.
Certain properties will be excluded such as bungalows or those that have been specially adapted for people with disabilities as the council may require these homes in the future.
Working out the Purchase Price ?
Your property will be assessed by an independent valuer who will work out what your property would sell for on the open market. The discount that you are entitle to will then be subtracted from the market value and this will be the price you will pay.
How much Discount will you get ?
If you are intending to buy 100% of the property you will be entitle to a maximum discount of £24,000. If you are eligible for the scheme you will receive a 20% discount for the first five years that you have lived there and an additional 2% for each additional year. The maximum discount available will be 60% or £24,000 which ever is lower.