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.