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Right to Buy Mortgage
Right to Buy can give eligible council tenants the opportunity to purchase their home at a significant discount. We help you understand your discount, borrowing options and the mortgage process from application through to completion.
What Is Right to Buy?
Right to Buy is a statutory right that can allow eligible secure council tenants in England to purchase the property they live in at a discount from its market value. The council arranges an independent valuation before applying the applicable discount.
Buy Your Council Home
Eligible secure council tenants may be able to purchase their main home rather than continuing to rent it.
Purchase With a Discount
The purchase price can be reduced by a statutory discount, subject to qualifying criteria, property type and applicable regional cash limits.
Right to Acquire
Some housing association tenants may instead qualify for Right to Acquire, which generally provides a smaller fixed discount depending on the region.
Who Can Qualify for Right to Buy?
Right to Buy eligibility depends on your tenancy, the property and your circumstances. The property normally needs to be your only or main home and must be self-contained.
You generally need to have held a public sector tenancy for at least three years, although the qualifying period does not necessarily need to be continuous.
Your spouse, partner or certain family members who have lived with you for the required period may also be able to join the purchase.
Property is your only or main home
You have a qualifying secure tenancy
You have at least three years of public sector tenancy
Eligible family members may be able to join
You meet the landlord's current eligibility requirements
How Does the Right to Buy Discount Work?
The discount depends on how long you have been a public sector tenant and whether you are buying a house or flat. However, the final discount is also restricted by the applicable cash cap and other rules.
Houses
The discount can start at 35% after three to five years, increasing by 1% for each additional qualifying year, subject to the applicable maximum.
Flats
Flats can qualify for a starting discount of 50% after three to five years, increasing by 2% for each additional qualifying year.
Maximum Percentage
The percentage discount can be capped at 70% of the property's value, but the regional cash cap may reduce the actual discount significantly.
Right to Buy Rules Are Changing
Major reforms to Right to Buy have been proposed and are progressing through Parliament. Proposed changes include a longer qualifying period, substantially lower discounts, exemptions for certain newly built social homes and protections for some hard-to-replace rural properties.
The current three-year qualifying period and existing discount rules remain the live rules for now, but anyone considering Right to Buy should check the latest position with their council before making financial decisions.
How Does Right to Buy Work?
The Right to Buy process involves your landlord, valuation, legal work and mortgage finance. Planning each stage carefully can help prevent unnecessary delays.
Submit Your RTB1 Form
Complete and submit the Right to Buy application form to your landlord to formally begin the process.
Eligibility Decision
Your landlord normally confirms whether you have the right to buy and provides reasons if your application is refused.
Property Valuation
The council arranges an independent valuation to establish the property's market value.
Section 125 Offer
You receive the formal offer showing the valuation, purchase price, discount and other relevant terms.
Arrange Your Mortgage
Establish how much you can borrow and whether the discounted purchase price can be funded through available mortgage options.
Review the Property
Arrange an independent survey and carefully review service charges, major works and property condition, particularly for leasehold flats.
Conveyancing
Your conveyancer reviews the legal documentation, lease, ground rent and service charge arrangements.
Exchange & Completion
Once the mortgage and legal work are complete, you exchange contracts and complete the purchase.
How Can You Finance a Right to Buy?
One of the key advantages of Right to Buy is that many mortgage lenders can take the discount into account when assessing the purchase.
Depending on the lender's criteria, you may be able to borrow the full discounted purchase price without providing a conventional cash deposit. Your affordability, credit history, property type and the lender's maximum LTV will still need to be considered.
A specialist broker can be particularly useful where the property is an ex-local-authority flat, high-rise property or non-standard construction.
Discount Can Act Like Your Deposit
If a lender accepts the Right to Buy discount in lieu of a cash deposit, the discounted purchase price may be financed within the lender's permitted LTV limits.
Right to Buy discount £60,000
Purchase price £140,000
Costs Beyond the Mortgage
Buying your council home means taking responsibility for costs that were previously covered by your landlord. These should be included in your affordability calculations.
Legal Fees
Budget for conveyancing and legal work associated with the purchase and, where applicable, lease review.
Survey
Consider arranging your own survey because the council's valuation is not a detailed condition survey.
Service Charges
Flats may have ongoing service charges and potentially substantial major works contributions.
Property Repairs
Once you become the owner, responsibility for repairs, maintenance and buildings insurance moves to you.
The Discount Comes With Conditions
If you sell within the first five years, you may have to repay some or all of the Right to Buy discount. The amount generally reduces over the five-year period, but the calculation can be based on the property's value at the time of sale.
For ten years, the council may also have a right of first refusal if you decide to sell the property.
Ownership also means taking responsibility for repairs, insurance, service charges and potentially significant major works bills. These costs should be considered before deciding whether buying is financially suitable.
Make Your Right to Buy Decision With Confidence
Right to Buy can be an excellent opportunity, but the discount, property type, mortgage criteria and future ownership costs all need to be considered together.
Check Your Eligibility
Understand the key tenancy and property requirements before proceeding with your application.
Understand Your Discount
Work out how the valuation, discount and applicable cash cap could affect your purchase price.
Explore Mortgage Options
Compare lenders and understand how your Right to Buy discount may be treated when assessing your mortgage.
Plan Your Ownership Costs
Consider service charges, repairs, insurance and future resale restrictions before committing.
Let's Explore Your Right to Buy Mortgage Options
Whether you've just received your Right to Buy offer or are considering whether buying your council home is achievable, we're here to help you understand your mortgage options.