Right To Buy Mortgages

Right to Buy Eligibility

In a nutshell, a council tenant who has been resident in their property for the minimum period of time now has the option of buying the property at a discount rate on current market values. There are, however, many more restrictions that a potential purchaser will have to overcome, before they are able to exercise their right to buy.

Anyone who is considering exercising their right to buy needs, first and foremost, to ensure that they are eligible.

Length of Time in the Property
For tenancies that commenced before 18 January 2005, the tenant will need to have lived in the property for at least 2 years. Any tenancy that started after 18 January 2005 will require the tenant to have been in residence and paying rent for 5 years, before they can gain the right to buy the property. In Northern Ireland, tenants who started their tenancies after 12 October 2004 will need to have been in residence for at least 5 years, before they can apply for the right to buy.

Which Council Tenants do not have the Right to Buy
Aside from living in the property for the minimum qualifying period, there are certain other restrictions that could preclude a council tenant from exercising a right to buy over their property; for example, a housing association tenant whose tenancy began on or after 15 January 1989 or a tenant in a property which is owned by a charity and not a council. A further restriction which is unique to Ireland is that a right to buy will not exist if the tenant is living in a single storey or ground floor property, except in the case of a ground floor flat.

It should also be noted that individuals who are bankrupt, or have a bankruptcy petition against them or have a court order for the possession of the property cannot apply for a right to buy.

Options for those Not Entitled to the Right to Buy
It is possible, in the case of those with a secured or assured tenancy and a registered social landlord that tenants without the right to buy may, nevertheless, have the right to acquire. This right to acquire actually only applies to a limited number of properties. One of the primary restrictions is that the property must have been built, using public funds, on or after 1 April 1997.

Summary
The rules changed on 18 January 2005 and now a tenant must be resident in the property for at least 5 years;
certain tenants do not have the right to buy, such as those in charity owned accommodation;
those in properties built after 1 April 1997, they may have the right to acquire.