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Council Right To Buy Mortgage – Transform Your Accommodation Into Home
By: Sandra Smith
Homeowner - does this term catch your attention every time you hear it? It is a
powerful term. It is hard being a tenant for long. Eventually you want to own a
house perhaps that was your aim all along. If you dream of your own home every
night then perhaps council right to buy is the scheme which you need to look out
for. If you have lived in your council house for long then you may be able to
buy the house at discount through council right to buy.
Council right to buy mortgage is the largest single mortgage market. Council
right to buy is increasingly becoming popular, though it is still a specialist
product. The 1981 Housing Act allowed the council tenants to buy the property
they live in from local authority. You are a council tenant, if you have been
living in any of the following – London borough council, district council, non
charitable housing institution, county council or any other similar council.
If you have been renting your council or housing association for at least 2
years then you can buy property at discounted rates. 18th January effected a new
modification in council right to buy schemes. If your tenancy begins on or after
18th January 2005, then you would have to wait for 5 years to qualify for right
to buy.
Buying a home is undoubtedly a huge financial commitment. Council right to buy
has helped over 1.5 million people to own their home in UK. There are set of
conditions which apply to Council right to buy. Your claim to council right to
buy would not be entertained
• If your home is not your only or main home
• If you don’t live in your home
• You live in sheltered housing where services are provided
• Your home has been designed or adapted for people with special needs
• If your tenancy has been demoted or you right has been suspended by the court
• If your home is part of your job profile
Not every homeowner can afford to buy the home even if he or she is eligible.
Council right to buy mortgage will provide you with adequate money to register
the home in your name. If you actually apply for council right to buy, first of
all the value of your property will be assessed. This will be followed by an
opportunity to buy this property at discounted prices. The discount calculated
on council right to buy takes into consideration the time period of your
tenancy, whether the property is a house or a flat and the age and condition of
the property.
The discount on council right to buy is usually a percentage of the value of the
property. There is a provision of maximum discount on properties in different
areas of the country. Like in some parts of London, the maximum discount on
council right to buy is £38,000 irrespective of the value of the property.
Similarly the maximum discount at other regions are £34,000 in the Eastern
Region 30,000 in the South-West £26,000 in the North-West or the West Midlands
£24,000 in Wales, the East Midlands or Yorkshire and the Humber £22,000 in the
North-East.
Most probably you won’t be requiring the full amount to buy your home through
council right to buy mortgage. However, most of the lenders will allow you to
take out more than you required on your council right to buy mortgage. Standard
borrowing terms will be applied which can vary from lender to lender.
While getting council right to buy mortgage it is important to understand the
legalities associated with the process. Enough information is available on the
net. Doing adequate, detailed research will lead you to an awareness of what you
are getting into. Legal formalities can be sorted out with the help of a lawyer
or a solicitor. Forms like RTB1, RTB2, Section 125 notice are some of the forms
that are important for council right to buy mortgage.
Your council right to buy mortgage will bring with it some costs and fees that
you did not have to pay before. Your council’s help with stretch only to the
emergencies repair and won’t extend to repair works and improvements. So you
should be prepared for additional expenses.
Council right to buy mortgage is the best option for council tenants. Though it
is not a very easy thing to do. Initiate the search process fast because
approval can take more than three months. You are living in this brick and
mortar house for some years now. You would like to live in a home wouldn’t you?
So is council right to buy mortgage an ideal choice? Indeed, it is.
About the Author:
Sandra smith is making an honest effort in such a direction so that loan borrowing is comprehensible to lay man and thereby he can make a favourable decision that substantiates his financial status.To find Mortgage,first time buyer mortgage,but to let mortgage that best suits your needs visit http://www.easymortgageuk.co.uk |
