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Since the Right to Buy Scheme (RTB Scheme) was introduced in 1980, there have been continual changes to the scheme criteria. However, since January 2005 a series of major changes were introduced.
Here we explain the changes introduced to the Right to Buy Scheme in January 2005, what they might mean to you, and how we might be able to assist you should you be looking to purchase your council home.
Table of Contents:
Up until January 2005, if you were to resell your home within three years of purchasing your council property from the local authority under the right to buy scheme, then you were obliged to repay some or all of the discount you had received at the time of purchase.
Under the new provisions, the pre-emption period, i.e. the period where a refund of discount will be repayable, has been extended to five years.
In the case of both houses and flats, the maximum amount of discount will vary between £16,000 and £38,000. The maximum discount will depend on the area where the tenant lives. However, there are exceptions to the right to buy scheme for some council properties, including property that is tied to employment, and housing specially provided for the elderly and in some cases, those that are disabled.
The maximum regional discounts available are:
| Wales: | £16,000 |
|---|---|
| London: | £16,000 |
| The North East: | £22,000 |
| The East Midlands, Humberside and Yorkshire: | £24,000 |
| The North West and West Midlands: | £26,000 |
| The South West: | £30,000 |
| Eastern region: | £34,000 |
| The South East: | £38,000 |
Under the old provisions for the Right to Buy Scheme, if you sold your property within three years of purchase from the local authority, the amount of discount that came repayable to the council was based on a percentage of the original discount allowed.
The amount you were required to repay was reduced by one third of the total discount you had received for each expired year since purchase. After the end of the third year, no discount was repayable.
For purchases after 18th January 2005, if you were to resell your home within five years of purchasing your home from the council under the right to buy scheme, then the amount repayable to the local authority on resale, will be calculated as a percentage of the resale price.
Under the new provisions for the Right to Buy Scheme, if you sell your property within ten years of purchase from the council, the local authority has the right of first refusal, and so the local authority has the option of buying back the property in preference to any other purchaser for up to 10 years.
For additional information regarding the Right to Buy provisions, why not take a look at our Council Right to Buy Mortgages page.
Well there are many, here are just a few!
Well hopefully we've managed to explain and answer any initial questions you may have had regarding the Right to Buy Scheme and its provisions. If you are interested in buying your council home, then you will be glad to know, there is further essential reading on our site. Why not also take a look at our Right to Buy mortgages page. Or, why not contact us, either online, or call one of our qualified Mortgage advisors on Freephone 08000 282 281. Our lines are open between 8am and 10pm everyday, including the weekends. We think you will find our approach to be friendly, helpful and professional.
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
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