Making Home Ownership A Reality

If you have been given the opportunity to purchase your housing association home, then you have found the right independent mortgage brokers to assist you in turning your dreams into a reality.

Having the right to acquire allows most not all housing association tenants the opportunity to buy their home at a discounted price. As you read on more information will be provided as to the levels of discounts you may be entitled to. It is astonishing that you could potentially realise your home ownership dreams by following a few simple steps, and of course making the right call on choosing the right independent mortgage brokers for you.

There are specific criteria that you must meet before you can even apply to buy your housing association home or if you’ve had a public sector landlord for 3 years.

These landlords include:

  • Housing associations
  • National Health Service (NHS) trusts and foundation trusts
  • Councils
  • Armed services

What properties are eligible for the right to acquire?

The property must have been:

1. The property must have been built or bought by a housing association (HA) after 31 March 1997 (it also must have been funded through a social housing grant provided by the Housing Corporation or local council)
2. The property must have been transferred from a local council to a housing association after 31 March 1997
3. Your landlord must be registered with homes England

The home you want to buy must also be:

1. A self-contained property
2. Your only or main home

If possible? Can I make a joint application?

You could make a joint application with:

1. Someone who shares your tenancy such as your partner or parent
2. Up to 3 family members who’ve lived with you for the past 12 months (even if they don’t share your tenancy)

You can’t have the right to acquire if:

1. You’re currently in the process of being made bankrupt
2. You have a preserved right to buy
3. You’re a council tenant – you may be able to use right to buy instead of the right to acquire
4. A court has made an order for you to leave the property

What discount could be available?

There could be a discount of between £9,000 and £16,000 off the price of your property. That is literally free money. There are some caveats to this discount, especially surrounding the sale of the property, but read on to find out more. If you feel at any point that you would prefer to speak directly with one of our highly experiences mortgage brokers please just give us a call to discuss. If you’re happy then read on for more information surrounding the right to acquire scheme.

The level of discount varies, and is dependent on whereabouts you live with the United Kingdom.

Your landlord will inform you what the level of discount you’ll be entitled to when you apply to buy your home. Potentially the discount could be reduced if you’ve used right to acquire or right to buy previously.

What happens if I want to sell my home?

It goes without saying that you may at some point in the future decide you would like to move home and sell your home. If you sell your home within 10-year period of buying it through Right to Acquire, you must first offer it to your old landlord. Sometimes this may be called first refusal.

The property must be sold at the full market value and agreed between you and the landlord if they do want to buy the property back.If you can’t agree on a price, an appointed district valuer will say how much your home is valued at and set the price. Don’t worry, you won’t have to pay for their valuation if this is necessary. If the landlord doesn’t agree to buy your home within 8 weeks, you can sell it to anyone at whatever price you choose to do so.

What if I want to sell before the 10-years are up?

If you plan to sell your home within 5 years of buying it, you’ll have to pay back some or all of the discount you originally got.
If you sell within the first year, you’ll have to pay back all of the discount. On top of this, the amount you pay back depends on the value of your home when you sell it. So, if you got a 10% discount, you’ll have to pay back 10% of the selling price.
If you choose to sell after the first year, the total amount you pay back reduces. You pay back:

  • 80% of the discount in the second year
  • 60% of the discount in the third year
  • 40% of the discount in the fourth year
  • 20% of the discount in the fifth year

Example: If youbought your home worth £100,000 and got a 10% discount (£10,000). You then sold your home after 18 months for £120,000.

10% of £120,000 is £12,000. As you’re in the second year, you would repay 80% of £12,000 (£9,600).

As you can see there are many things to consider when applying for the right to acquire your housing association property. However, if you do decide to do this, then rest assured we will help and guide you through the entire process.

We’ll alsoact as a go between you and the surveyors,housing association’ solicitors and estate agents on your behalf. We want to ensure your right to acquire purchase goes smoothly from start to finish.

Making a mortgage application can be daunting but choosing independent mortgage brokers to assist with your right to acquire could potentially take the stress and uncertainty of choosing the right mortgage for you and your family. Ensuring that your needs and circumstances are taken into consideration when selecting the right mortgage for you. We deal with lots of people that don’t believe that they will be lucky enough to take advantage of the right to acquire scheme, turning your dreams of home ownership into a reality is what we do. Don’t just take our word for it, give us a call and let us make your dreams come true.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments

We are here to help you

Contact Us