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Buy Discount

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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:

  1. How long they have lived in the property
  2. Whether they are buying a house or a flat
  3. The value of their home
  4. 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 £36,000 36% £64,000
7 years £37,000 37% £63,000
8 years £38,000 38% £62,000
9 years £39,000 39% £61,000
10 years £40,000 40% £60,000

 

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 £100,000

TENANCY AMOUNT OF DISCOUNT APPLIED DISCOUNT PERCENT AMOUNT TO PAY
3- 5 years £50,000 50% £50,000
6 years £52,000 52% £48,000
7 years £54,000 54% £46,000
8 years £56,000 56% £44,000
9 years £58,000 58% £42,000
10 years £60,000 60% £40,0000

 

The value of their home

In most parts of London, the maximum discount Right to Buy borrowers are eligible for is £108,000 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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Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of our Independent Mortgage Brokers to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisers working for or with Independent Mortgage Brokers are fully qualified to provide mortgage advice and authorised and regulated by the Financial Conduct Authority. All our independent Mortgage Brokers will offer advice specific to you and your needs and circumstances. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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