Right To Buy Mortgages

Right to Buy - Tips for the Tenant

Being a tenant seeking to exercise one's right to buy requires an acute understanding of the system and of the restrictions in place, if the process is to be easy and the sale is to proceed smoothly.

Right To Buy Groundwork
Before applying for the right to buy, do your groundwork, first! As soon as you make your application to your landlord for the right to buy, you are placed on a tight timetable that requires both you and your landlord to adhere to rigid deadlines. This may not allow you the time that you need to complete the necessary calculations and to obtain the depth of advice that you require. For this reason, it is vital that the background research is carried out in advance of submitting the application.

Find out how much the mortgage repayments are likely to be and whether you will be able to meet these payments comfortably, without the assistance of housing benefit, to which you will no longer be entitled. Consider all of the additional costs such as insurances, maintenance and repairs and decide how much of a deposit you have available or would need to have in place, in order to make the purchase viable.

Once you have decided that the figures add up, it is time to get your application in to your landlord.

Follow The Rules
Pay attention to detail. When filling in the forms, make sure that you are thorough and honest, as these forms will be the basis on which your landlord makes his decision. From this form, your landlord will decide whether you are eligible and what discount level you should receive. This is, of course, fundamental and this process should not be rushed.

Stick to the timelines laid out in the rules and make sure that you comply with all of the requirements, at every stage, so that you do not delay or even lose your right to buy.

Think Longer Term
Remember the process is not complete until you actually have your name on the property. You may still be subject to resale restrictions which will require you to pay back some, or all, of your discount. Ignore these restrictions at your own peril!

Summary
Completing the right to buy process requires diligence and advance planning;
always stick to the deadlines and make sure that you are thorough when filling in forms;
remember that the rules are still in force AFTER the purchase has been completed.