Right to Buy
Purchasing through the right to buy scheme is a process in which a client is able to purchase their property they are currently renting through the council. It’s a scheme which has picked up in popularity over the last few years and still growing to this date.
The main benefit of this is that the council allows the tenant to purchase their property at a discounted price, sometimes without even saving for a deposit for the property itself, making it a reality to own a property for those with a lower income.
The process is that the property will be valued and send to the government, this is when they will apply a discount on the property for the tenants, this is where the main benefit comes in of the discount replacing the deposit for the tenant.
The above depends on each lender, however, due to the circumstances and the type of the mortgage the lenders will take into account the discount as the deposit and the remaining amount will be the mortgage loan amount.
Another worry some tenants seem to have is a possibility in having adverse credit while looking to purchase their property from the government through this scheme. In almost but all cases, the government and lenders will also look at this as some tenants fear this will be an issue, they are lenient when it comes to this circumstance.