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[R336]Right To Buy Mortgages

by Sandra Smith, San

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.

If so then you have the right to buy your council house at a discount. This is called council right to buy mortgage. For council tenants in UK it is really a very good option to be a houseowner using this right. With the help of a council right to buy mortgage you can say good bye to tenancy and become a proud houseowner.

After buying your council house you will be sure that you can live in it as long as you wish. You will never be asked to vacate it. So there will no uncertainty and no hassle which a tenant generally faces. In addition to this there are some other benefits to be availed through a council right to buy mortgage. Affordable repayment and flexible terms are important among them.

However, the most important thing about a council right to buy mortgage is its discounted rate. The percentage of discount you will be allowed is dependable on the years you have been living in the house. In all likelihood your repayment installment including the interest rate will be almost equal to the rent you used to pay. Notable point is that the rent once paid is lost forever. But the monthly repayment installment you make always contributes towards building up equity in your house.

You can qualify for a council right to buy mortgage if you are a secured tenant of district council, London borough council, housing action trust, non-charitable housing association or a tenant of sheltered housing. The option of council right to buy mortgage will remain available to you even if your credit record is less than perfect. So use the right you have in your hand and be a homeowner.

Article Source : Pg. 112

About Author

Both Sandra Smith & Aldi Salana are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Sandra Smith has sinced written about articles on various topics from Motorola Cell Phone, Mortgage and Finances. . Sandra Smith's top article generates over 4400 views. to your Favourites.

Aldi Salana has sinced written about articles on various topics from Poor Credit, Holidays and Finances. The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Adverse-Credit-Council-Mortgage as a. Aldi Salana's top article generates over 2400 views. to your Favourites.