We’re bringing you the next in our series about the help there is available for first-time buyers in the UK. It can be difficult to find affordable housing as a first-time buyer. Schemes such as the Right-to-Buy scheme discussed here, however, are available to give you a boost. Check out the earlier post on Lifetime Individual Savings (LISA) accounts, and watch this space for more in the blog series.
What is a first-time buyer?
As a reminder, for the purposes of the Right-to-Buy scheme, a first-time buyer has never owned a property anywhere in the world. As well as homes you have purchased, inherited property will make you ineligible. This is the case if the inheritance was a shared or complete ownership, and even if the property was sold immediately.
Right-to-Buy scheme
The Right-to-Buy scheme was introduced as part of the 1980 Housing Act. It gives tenants of public sector landlords the opportunity to purchase their home at a discounted rate.
Who is eligible for the Right-to-Buy scheme?
You are eligible for the scheme if you have had a public sector landlord for 3 years in total. This does not need to be three consecutive years. A public sector landlord may be a council, housing association or an NHS trust, for example. The property you are looking to purchase must be your main home, and it should be self-contained. This means that the property does not have any shared rooms with those from outside your immediate household.
What level of discount will I receive?
The level of discount is based on whether the property is a house or a flat, and the value of the home. The property’s location is also a factor, along with how long you have had a public sector landlord. Below we have detailed the discounts available for the North East of England. You’ll find discounts for other locations on the government website*.
Maximum discount:
The maximum available discount is £22,000, or 70% of the value of the property, whichever is lower.
House:
If you have lived in the house for between 3 and 5 years, you’ll receive a 35% discount.
The discount rate increases by 1% for every extra year above 5 years, up to the maximum discount.
Flat:
If you have lived in the flat for between 3 and 5 years, you’ll receive a 50% discount.
The discount rate increases by 2% for every extra year above 5 years, up to the maximum discount.
How can Bell Mortgage Solutions help?
Our expert team are on-hand to help you get on the property ladder. We understand the magnitude of this milestone, and will support you throughout the process. After assessing your affordability, we’ll advise on any help you may be eligible for. Contact us to find out more.
Please note: Your home may be repossessed if you do not keep up repayments on your mortgage.
*Please be aware that by clicking onto the above link you are leaving the Bell Mortgage Solutions website. Please note that neither Bell Mortgage Solutions nor PRIMIS are responsible for the accuracy of the information contained within the linked site accessible from this page.
The information contained within was correct at the time of publication but is subject to change.
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