uk : mortgages : right to buy

Most Council tenants have "The Right to Buy" their home. The right-to-buy means you can buy your home from a local authority, a non-charitable housing association or a housing action trust. Usually this will cost less than on the open market because as a tenant you can obtain a discount.

Under the right-to-buy scheme, council tenants are entitled to a 32% discount on the value of their house after they have lived in it for two years, followed by a further 1% deduction for each additional year, up to a maximum of 60%. For flats the available discount rises to 70%.

To qualify you must:

Be the legal tenant of the property you wish to purchase.
Have been a tenant of this Council or another "right to buy" landlord for at least two years.
You may be entitled to a discount off the purchase price of your home. The amount of discount depends on how long you have been a tenant of this Council or other "right to buy" landlord, and the type of dwelling you are living in.

1. For Houses: The discount after two years is 32% with an additional 1% for every extra year up to a maximum of 60%.

2. Flats: The discount after two years is 44% with an additional 2% for every extra year up to a maximum of 70%.

Various mortgage schemes are available which allow capital raising for home improvements. Monthly mortgage payments are often lower than rental costs.