ight to buy is one of the tenant needs to have two years
most popular policies that public sector tenancy. A new
have a profound social council tenant that is if the
impact increasing the owner tenancy began on or after 18th
occupancy. Right to buy schemes January 2005 will require minimum
introduced in 1980 has given the five year tenancy.
right to tenants to buy their
property at discounted rates. Before going to right to buy
More than five million council mortgage, calculate the amount
right tenants have become you have to pay for right to buy.
homeowner through this scheme. Most lenders will provide
You can be a part of the "most 95%-100% of the right to buy
important social revolutions of amount. To find such a lender you
this century" by endorsing will be required to do some
council right to buy scheme. research. There will be lenders
who offer specialized right to
If you are a secured tenant of buy mortgage products.
"· a local authority Start the day you get council
"· London borough council right to buy offer. The time
"· Housing action trust spent on research will be the
"· Registered landlord (non time well spent. There are
charitable) companies who may try to contact
you with plans to aid you with
Then you are legally capable of council right to buy scheme. They
buying the house under the may offer all in one packages
Housing Act. Buying a home can be including mortgage and home
expensive. Right to buy mortgage improvement etc. this may lead
can help you meet the cost of you to take a mortgage deal
home. For right to buy a council without bargaining or one that
you can't afford. There may be
mortgage lenders who want to tell
you that buy to right scheme is "· 35% for houses and 1% for each
nearing closure. That is, year spent as a tenant. The
however, not true. maximum limit is 60%.
"· 50% for flats with 2% discount
Discounts available on ‘right for every extra year. The maximum
to buy' can be anywhere between limit is 70%.
32%-70%. The discount available
with council right to buy is There will be different maximum
dependent on how many years you discount limit for right to buy
have spent as council tenant and in different areas. For example
the maximum discount limit of
your area. Right to buy is "· London or south-east -
available for both houses and "£38,000.
flats. "· Eastern Region - "£34,000
"· South-West - "£30,000
"· For houses the discount after "· North-West or the West
two years is 32% and will add 1% Midlands - "£26,000
for every addition year of "· Wales, the East Midlands or
tenancy with an upper limit of Yorkshire and the Humber -
60%. "£24,000
"· North-East - "£22,000
"· Flats have discount of 44%
after two years and additional 2% A right to buy mortgage will not
for every year. The maximum make sense to you if your home is
discount for flats will be 70%. sheltered housing for elderly,
only temporary accommodation, or
For the 5 year schemes (tenancy your home is provided by the
starting after 18th January 2005) company you are working with.
Council right to buy would Right to buy is an opportunity of
require some documents to be becoming a homeowner at
filled as part of the application affordable rates. It is not easy
process. With an RTB1 form you to become a homeowner but it
make an application for right to seems like a realistic
buy. After that a notice form possibility. Right to buy has
RTB2 form is sent to you telling encouraged tenants to remain in
whether you have right to buy. An their neighbourhood and construct
important document called Section stable income communities. With
125 tells you about the price you ‘right to buy' any individual
have to pay and the terms and can hope to transform his or her
conditions. This should to be life socially.
read carefully.
About the Author:
Amanda Thompson holds a Bachelor's degree in Commerce from CPIT and has completed her master's in Business Administration from IGNOU.To find a Personal loans,bad credit loans,Debt consolidation,home equity loans at cheap rates that best suits your needs visit http://www.chanceforloans.co.uk
Source: www.isnare.com
