Instead of moving out of your Council House, why not buy it?

by | Jul 26, 2024 | Mortgages

Looking to make the leap from council tenant to homeowner? This article is your roadmap to purchasing your council property, guiding you towards a well-informed decision on this exciting path.
Can I Buy My Council House?
As a resident in a council house, you have the opportunity to turn that house into your own home. While success is not guaranteed, the option to apply is in your hands. The Right to Buy scheme, established in 1980, has proven to be a game-changer for tenants. This scheme not only safeguards your right to purchase your home but also facilitates the acquisition of council houses at discounted rates directly from your local council.
Here are a few requirements you need to meet if you wish to buy your council house:
* You must use your house as your sole or main home
* Your home must be self-contained
* You must have been a secure and reliable tenant

The full Right to Buy scheme is only available in England. Wales and Scotland have versions of the scheme.

How Much Can I Buy My Council House For?
Purchasing a council house’s cost is determined by various factors, with the standard discount rates here as follows:
* You can receive a discount of 35% if you live in a house and you’ve been a tenant for 3-5 years. After 5 years the discount increases by 1% for every further year you’ve been a tenant, up to a maximum of 70% – subject to regional amount maximums

* You can receive a discount of 50% if you live in a flat and you’ve been a tenant for between 3-5 years. This then increases by an extra 2% for every further year you’ve been a tenant, up to a maximum of 70% – subject to regional amount maximums

How Do I Buy My Council House?
The first step to buying your council house is to complete an application form and send it to your local council’s housing department. They’ll work out the value of the property and any land included in the price. They’ll also consider any additional costs, like service charges, or any issues that may affect the value of the property. After a value is set, you’ll have 12 weeks to let your landlord know whether you want to buy the property.
Application Form
When Can I Sell My Council House?
There are discounts you may need to pay back if you want to sell your council house in the first few years. This will depend on the price of the house at the time you sell it and the amount of time you own it for.

If you bought your home through the Right to Buy scheme, you must pay back:

* The full discount if you sell your house within a year
* 80% if you sell within 2 years
* 60% if you sell within 3 years
* 40% if you sell within 4 years
* 20% if you sell within 5 years

How Do I Get a Mortgage for My Council House?
As with any house purchase, you may need a mortgage to buy the property. A mortgage lender will require documentation from you – such as proof of ID & payslips

Buying a property is a big life decision. It’s always advisable to consult a mortgage adviser before applying. We can guide you through the process and find you the most suitable deal out there.

Before You Apply for a Mortgage
If you think you can improve your credit rating, then do it before you apply for a mortgage. A higher credit score means you would be accepted by more lenders and the more lenders you have available to you, the better your chances of obtaining a competitive mortgage rate.

It’s also a good idea to start planning for the additional costs that come with buying a property, like:

* Stamp Duty
* Valuation fees
* Solicitors fees
* Potential maintenance charges – if you’re buying a flat

Remember that, once you buy your own home, you’re responsible for the additional costs that your landlord may have previously covered, e.g. buildings insurance. This is true regardless of whether you had a private landlord, or your home was owned by the local council.

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