Right To Buy and Right To Acquire
Financial Advice Hub are here to help
Buying your own home can be exciting yet worrying. Financial Advice Hub are here to help tenants from Local Authorities or tenants from participating Housing Associations to buy their homes. The process can seem daunting as there are extra steps that need to be taken outside of a general purchase. We will put you in touch with a Mortgage Adviser to arrange your mortgage. A Surveyor to confirm the condition of the building and a Conveyancer to conduct the legal work. We will also partner you with a Protection Adviser so all of the associated insurances are discussed.
Right To Buy
This means you are a local authority tenant for at least 3 years and would like to buy the property you have been renting as your home.
Right to Acquire
This means you are a housing association tenant for at least 3 years and would like to buy the property you have been renting as your home. Some Housing Associations will allow you to buy your rented housing association home at a discount, through the Right To Acquire Scheme. Contact your Housing Association to confirm if they are part of the scheme.
How we can help?
We work with companies that understand the mortgage criteria of different lenders and the required Right To Buy/Acquire paperwork. The Mortgage Adviser will advise you on what the lenders require when buying your home from a Local Authority, as additional paperwork is required if you intend to carry out home improvements and would like additional money from your mortgage lender to fund the improvements.
Partnering You with the right Professionals
Not all lenders or conveyancers work within the Right To Buy specialist area. Our team at Financial Advice Hub will make the process as smooth as possible for you by partnering you with the right mortgage adviser and conveyancer.
Section 125 Notice
Once you have received your Offer Letter from your local authority, also known as a Section 125 Notice, our team at Financial Advice Hub will engage a mortgage adviser for you. The Local Authority will need to see how you will fund your purchase and will ask to see a Decision In Principle.
Decision In Principle
This means a mortgage adviser has conducted the necessary calculations of your discount, income, expenditure, mortgage funds required, has received your supporting documents and has successfully submitted the first application to a lender on your behalf. If you have been granted a Decision in Principle, it means in principle a specified lender is willing to lend the agreed stated sum.
Right To Buy/ Right To Acquire Discount and Your Deposit
The amount of discount you will receive is dependent on how long you have been a tenant. Your Local Authority or Housing Association will advise you of the discounted figure. This will be stated in your Offer Letter also know as a Section 125 Notice. This discount will form part or all of your deposit for the purchase of your home.
Survey
Local Authorities and Housing Associations will always suggest you have your home surveyed. They are trying to be as transparent as possible about the property you are purchasing. Buying a property is probably the largest purchase you have made and even though you may have lived in the property for some time, you may not be aware of structural or foundational issues. A survey is always recommended before purchasing your home. Our team are happy to help you further and can organise a survey for you.
Each Local Authority or council will send you their specific information pack on Right To Buy or Right To Acquire, as there may be slight variations to their conditions. We have enclosed the Government guide for your information. Your Right To Buy Your Home Government Guide