How can I get a Right to Buy Mortgage in the UK

How to apply for a Right to Buy Mortgage

Step 1 - Applying to buy

Start by asking the Council’s Housing Department for the Right to Buy form (Form RTB1) The Council must give you one for free if you ask. Fill in the form carefully.
It is used to decide:

Whether you have to right to buy: and

How much discount you will get

(Be wary of people other than the Council offering you form’s, especially if they ask you to pay them for this)

When you have filled in the form, return it to the Council’s Housing Department. Because the form is an important legal document it is a good idea to use recorded delivery or to deliver it by hand and get a receipt, otherwise you may be unable to prove that the Council has received the form. You should keep a copy of the completed form for yourself.

Step 2 - The Council’s Response Notice

Having received your claim form, the Council must send you a notice (Form RTB2) telling you whether or not you have the Right to Buy. You should get this within 4 weeks from the date on which the Council receives your RTB1 form (or within 8 weeks if you have been a tenant of the Council for less than 2 years). If the Council says that you don't have the Right to Buy your home, theyl will explain why. If you don't agree with the Council's explanation, you can get advice from a Citizens Advice Bureau or from a solicitor

Step 3 - The Council’s Section 125 Notice

If the Council has agreed to sell your home to you, the Council will contact you to arrange for a valuer to carry out a valuation of your home. When the valuation has been carried out the Council's Property Services Department will send a letter to you incorporating the Section 125 Notice. This Notice tells you the price you have to pay and the terms and conditions of the sale. The Council must send this Section 125 Notice to you within a further 8 weeks after you have received your RTB2 form if your home is a house and you are buying a freehold, or within 12 weeks if your home is a flat or maisonette. If you are buying a house on leasehold terms, the time limit is also 12 weeks.


The Section 125 Notice is a very important document and you should read it very carefully
It will tell you 5 main things:

1. It will describe the property that you have the Right to Buy

2. It will tell you the price the Council considers you should pay for it

3. It will give you estimates of the service charges or improvement costs you will have to pay during the first 5 years after buying your home if it is a flat or maisonette
4. It will describe any structural defects that the Council knows about

5. It will contain the terms and conditions that the Council thinks should be attached to the sale

Step 4 - Appealing to the District Valuer

When you receive your Section 125 notice, you may feel that what the Council thinks is the full market value of your home is too high. If so, you have a right to obtain an independent valuation from the District Valuer.
The District Valuer's valuation will be the one that counts. Even if it is higher than the Council's valuation, you will still have to accept it or withdraw your application to buy your home
Step 5 - Resolving any questions about the Section 125 notice

If you want to question anything in the Section 125 notice you should contact the Council’s Property Services Department.

Step 6 - Getting a Survey

Before you finally decide to buy, you should get an independent survey from a qualified surveyor. When you apply for a mortgage, the Mortgage Broker (maybe add something about Heron here) will have a survey done,
Step 7 - Getting Legal Advice
Before deciding whether to buy you should get legal advice. If you don’t know a solicitor you might ask your Mortgage Broker to suggest one.

Step 8 - Telling the Council what you want to do next

You will have two choices at this stage:

1. Buy your home outright for the full Right to Buy price, less any discount for which you are eligible
2. Forget about buying, withdraw your application and carry on paying rent

When you have decided, you must tell the Council in writing. To help you tell the Council in writing, the Council will have sent to you with the Section 125 Offer Notice letter, a yellow FORM V11 so that you can answer the questions on this form and then sign and date it and send it back to the Council's Property Services Department
You must return the Form V11 or a letter advising the Council of your decision within 12 weeks of receiving your Section 125 notice. If you have asked to have your house valued by the District Valuer, you must tell the Council what you want to do within 12 weeks of getting that valuation. If you do not let the Council know what you intend to do in time, the Council will send you a reminder (this reminder will be a letter and a Notice of Default). If you do not reply within 28 days, the Council will think you don't want to buy, and your application will not be dealt with any further.
Step 9 - Enquiring about a Mortgage

If you need a mortgage, this is when you should talk to a Mortgage Broker (maybe add something about Heron here)

To get help on a Right to Buy Mortgage UK or a No Proof of Income Mortgage visit the Heron Mortgages website and ask them for a quote.

Step 10 - Completing your Purchase

If you are happy with the Council’s terms for selling your home to and you have arranged to raise the money you are ready to go ahead and buy your property. You should let the Council know as soon as you are ready to go ahead. It will help the process if you or your Mortgage Broker (again add something about Heron) keep the Council informed of your circumstances and any issues that may delay the purchase.

Delays or problems with the sale:

Most sales go through quickly, but sometimes there are problems or delays. If the Council does not send you Form RTB 2 (the notice telling you if you have the Right to Buy) or the Section 125 notice (offer notice) within the times mentioned or is otherwise delaying the sale, you may be allowed a reduction in the purchase price. To get this reduction, you first need to fill in an initial notice of delay (Form RTB 6) and send it to the Council.