What Is Right To Buy

Published: 10/05/2022

Although getting on the property ladder can be a tough cookie to crack, we are lucky that there are programmes available to people throughout the UK to help assist with buying a home of your own, including those of us who are on lower income.

One of the opportunities available to clients is the Government Right to Buy scheme. The Right to Buy scheme was designed to help tenants who live in council housing, buy their homes with sizeable discounts included. The discounts can sometimes be used against the upfront deposit amount, which means the buyer could potentially only have to pay a certain amount of the house deposit.

What is Right to Buy?

The Right to Buy was first introduced in 1980. It’s a scheme that means secure tenants can buy their home at a discount to the full market value. The discounts you are offered with the scheme depends entirely on how long you have been a public sector tenant.

Who can use it?

To qualify for the scheme, you need to have been a public sector tenant for three to five years. You don’t need to have been living in the same property for the entire length of time, nor does the period need to be continuous. You should be eligible for the scheme so long as you have accrued the correct number of years in public sector housing throughout your life.

Right to Buy mortgages

Although you can secure discounts with the Rght to Buy scheme, it’s likely that you’ll still need to take out a mortgage.

Many lenders will allow you to use the Right to Buy discount as a mortgage deposit, meaning that in some cases you’ll be able to borrow enough money to purchase the house without needing to offer any money up front. However, this is not always the case, so it is best to consult a mortgage provider or broker first to see what the best available options are to you.

Pros of Right to Buy

  • It is an affordable option for homebuyers who otherwise wouldn’t have been able to purchase a property traditionally
  • It gives people the option to own the property they have been renting for years
  • Gives people the chance to get their foot on the property ladder, that they otherwise wouldn’t
  • There will be no moving costs
  • Helps provide some long-term financial stability for the homebuyer and their family

Selling a Right to Buy property

You can sell your Right to Buy property at any point. However, if you look to sell the property within five years of purchase, you will be obliged to repay some or all of the discount that you received.

According to Gov.uk, the following is the discount amount you will be due to repay if you sell the property:

  • During the first year, you will be due to repay the full discount you received
  • During the second year, you will be due to repay four fifths of the discount you received
  • During the third year, you will be due to repay three fifths of the discount you received
  • During the fourth year, you will be due to repay two fifths of the discount you received
  • During the fifth year, you will be due to repay one fifth of the discount you received

How we can help

Get in touch with our experienced team today to learn more about how we can help! We have over 37 years experience in the legal sector, including services in conveyancing and remortgage.

If you require any information or a quote on Right to Buy today, don't hesitate to contact us!

Who are GWlegal?

GWlegal are a property solicitors based in Liverpool, specialising in buying or selling, remortgage, declaration of trust, bridging and buy-to-let landlords.

If you have a legal matter you wish to discuss don’t hesitate to get in touch. You can call us on 0345 373 3737 email us discuss@gw.legal with your question.

Who are GWlegal? We’re a national firm with local values.

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Content correct at time of publication.

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