Right-to-Buy (RTB) is a scheme under which longstanding local authority tenants are entitled to purchase their homes at a heavily discounted price.
Although RTB was in its heyday perhaps 30 years ago, we do still get enquiries in this area.
There are major implications when a tenant buys their property from the council and these should always be considered carefully. We will always discuss these with our clients. We will also ensure that such a purchase is financially viable and that any future mortgage payments will be affordable.
Not all lenders will lend on RTB properties and we will advise you of the best institution to approach, once we have found out more about your financial circumstances and the details of the property.
The very nature of this scheme means that we often deal with different types on non-standard properties. In the post-war period, local authorities experimented with various types of property construction methods. We regularly come across homes which are either high-rise, prefabricated, concrete-construction, steel-framed or timber-framed. This adds an additional layer of complexity to securing a suitable loan.
Once we have identified a lender who we believe will be happy to provide the desired loan, we are able to make enquiries on your behalf as to the suitability of the property itself. We have previously worked with local surveyors to gather information, which we can then cross-reference with the lender’s criteria. Almost all types of properties can have a mortgage secured upon them.
Adverse Credit RTB
When clients have secured a RTB offer, it is often an opportunity that they do not wish to miss out on. However, clients have approached us in the past with concerns about their credit history and have worried that this might prevent them from taking up their offer.
There are certainly lenders in the market who will consider lending on a RTB property even if an applicant has a less-than-perfect credit history. As in all adverse-credit cases, we strongly recommend that you apply for a copy of your credit file before we decide on the most appropriate lender to approach. Click here to send us an online mortgage enquiry.
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About Clifford Davis
Clifford Davis is a premier provider of property-related financial advice. Based in Barnet, North London, we pride ourselves on being able to advise and to provide guidance in all areas of property-related finance.