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Right to Buy Discount
People who are eligible for Right to Buy mortgages can receive varying levels of discount which depend on the following factors listed below:
- How long they have lived in the property
- Whether they are buying a house or a flat
- The value of their home
- Whether their landlord has spent any money on the property
How long they have lived in the property
Buying a council house througha Right to Buy mortgage and living in it for 3-5 years makes one become eligible for a 35% discount on the property’s market value. After a period of five years, the discount starts increasing by 1% for every extra year they have been a public sector resident.
The table below shows how much discount one would be entitled to when they buy a house with a worth £100,000…
| TENANCY | APPLIED DISCOUNT | DISCOUNT PERCENTAGE | AMOUNT TO PAY |
| 3 – 5 years | £35,000 | 35% | £65,000 |
| 6 years | ÂŁ36,000 | 36% | ÂŁ64,000 |
| 7 years | ÂŁ37,000 | 37% | ÂŁ63,000 |
| 8 years | ÂŁ38,000 | 38% | ÂŁ62,000 |
| 9 years | ÂŁ39,000 | 39% | ÂŁ61,000 |
| 10 years | ÂŁ40,000 | 40% | ÂŁ60,000 |
Whether they are buying a house or a flat
When you are purchasing a mortgage for a council flat via Right to Buy, you will qualify for a different discount. The discount will be 50% If you have been a public sector resident in that type of property for a period of 3-5 years. After the period of five years, this will increase by 2% each extra year.
The table shows how much discount one would be entitled to when they buy a flat with worth £100,000…
Flat worth ÂŁ100,000
| TENANCY | AMOUNT OF DISCOUNT APPLIED | DISCOUNT PERCENT | AMOUNT TO PAY |
| 3- 5 years | ÂŁ50,000 | 50% | ÂŁ50,000 |
| 6 years | ÂŁ52,000 | 52% | ÂŁ48,000 |
| 7 years | ÂŁ54,000 | 54% | ÂŁ46,000 |
| 8 years | ÂŁ56,000 | 56% | ÂŁ44,000 |
| 9 years | ÂŁ58,000 | 58% | ÂŁ42,000 |
| 10 years | ÂŁ60,000 | 60% | ÂŁ40,0000 |
The value of their home
In most parts of London, the maximum discount Right to Buy borrowers are eligible for is ÂŁ108,000 and 80,900 in England, the discount is usually capped for houses and flats of a certain value and this also applies to anyone who has lived in their property for a specific period of time.
Whether their landlord has spent any money on the property
If their landlord has spent any money into their council property, the discount they are eligible for will likely be affected by this and if the amount they have spent on maintenance exceeds the value of the property, they will not be entitled to any discount. In case you’re intending to purchase a council house with a Right to Buy contract, Independent Mortgage Brokers (IMB) can help you calculate how much discount you will be qualified for.
The first step of the application for a Right to Buy mortgage is filling out an RTB1 application form, which is available on the scheme’s official website.Independent Mortgage Brokers can connect you to the right lender.
Seeking advice from Independent Mortgage Brokers is the best way to kickstart your Right to Buy application. Not only can we talk you through the process and work out how much discount you qualify for, we can also connect you with the lender best positioned to offer you favorable rates based on your needs and circumstances.Speaking to Independent Mortgage Brokers is absolutely recommended in case you are planning to get a mortgage through the Right to Buy scheme. Getting a Right to Buy mortgage depends on meeting the eligibility requirements of many lenders and Independent Mortgage Brokers can also help with this as we can get you the best offers. Independent Mortgage Brokers (IMB)can offer you the correct guidance and link you with the correct bank depending on your conditions and needs.[/vc_column_text][/vc_column][/vc_row][vc_row el_class=”seo-link-sec hide”][vc_column][vc_empty_space height=”50px”][vc_column_text][slick-slider category=”28″ design=”design-5″ speed=”2000″][/vc_column_text][/vc_column][/vc_row][vc_row el_class=”call-out-sec stretch-sec” css=”.vc_custom_1568018042545{background: rgba(0,0,0,0.88) url(https://imbonline.co.uk/wp-content/uploads/2018/07/counter-wrapper.jpg?id=1382) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;*background-color: rgb(0,0,0) !important;}”][vc_column][vc_column_text]
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