UK Right to Buy Mortgage
With a UK Right to Buy Mortgage a resident renting a local council house and wishing to become a property owner can get a specialised loan to purchase the council house from the local council. Since the mid 1990's local councils have offered their residents the opportunity to buy the property from the local council, which is of benefit to both parties.The UK Right to Buy Mortgage was introduced as a way of allowing more people to get onto the property ladder, as well as reducing property maintenance cost for councils.
Benefits of a UK Right to Buy Mortgage
The benefits of a UK Right to Buy Mortgage for the resident renting is that they have the opportunity to own their own property and gain any benefits of a rising property value.
Often the property is sold at a discount to the prevailing market value to encourage take-up of the offer.
It has also been shown that where a group of residents in the same area buy their own houses, it can lead to a general improvement in the quality of life in the area because the residents take greater responsibility in looking after their property and the surrounding area.
The benefits to the local council are the savings in the ongoing maintenance costs of the property, the responsibility for which the new owner would accept.
Risks of a UK Right to Buy Mortgage
A condition of a the a UK Right to Buy Mortgage is that you can't move from your newly purchased property within the first three years. This was designed to prevent the rise of the serial 'right to buy' resident who would buy their rental property, immediately sell it, and go back to renting accommodation to repeat the process, to take advantage of any discount in the purchase prices.
For further advice and to talk to a mortgage adviser about arranging a UK Right to Buy Mortgage just click on the enquiry button below, fill in brief details, and an adviser will call you within the next 24 hours.
