I work as a valuation surveyor and we handle right to buy applications on behalf of councils and housing associations, the discount is based purely on your number of years as a tenant and, assuming you’re not in London, capped at £84,200/70% of market value, whichever is the lower. You are eligible for 35% discount after 5 years of tenancy with a subsequent 1% (2% if a flat) discount every year after so to get full discount you need to have been there for 40 years. They can also use years in a different council house in the same council area and add them together. Generally the discount is used in lieu of a normal deposit if you’re buying on the open market.
Getting a mortgage can be a bit “easier” than credit cards etc as it’s a loan secured against the house value and they lender will just take the house and sell it if you don’t keep up with the repayments. I’d say speak to a mortgage broker for further advice but a lot hangs on having a surveyor do the valuation.
someone said above about discount being partly based on work you’ve had done etc, this isn’t exactly true but along the right lines, the legislation around RTB says that any works/improvements the tenant has carried out will be disregarded and a basic standard is assumed, so for example if you were given a 2 bed house and have converted it into a 3 bed, it will be valued as a 2 bed for the purpose of a right to buy application.
the RTB scheme generally is controversial as it is removing council housing from the total housing stock and new council housing isn’t being built, the money from the sale doesn’t even all go back to your local council, it goes to central government and then a small amount is given back to whichever council sells it. The scheme has been stopped in Scotland and wales for this reason so if you can do it then do it now but on the other hand if you don’t absolutely have to use right to buy and can afford to buy privately then perhaps consider that option and let a family who need a home have your council house, in reality I can’t imagine anyone will turn down a big state funded discount though!
hope this helped
Getting a mortgage can be a bit “easier” than credit cards etc as it’s a loan secured against the house value and they lender will just take the house and sell it if you don’t keep up with the repayments. I’d say speak to a mortgage broker for further advice but a lot hangs on having a surveyor do the valuation.
someone said above about discount being partly based on work you’ve had done etc, this isn’t exactly true but along the right lines, the legislation around RTB says that any works/improvements the tenant has carried out will be disregarded and a basic standard is assumed, so for example if you were given a 2 bed house and have converted it into a 3 bed, it will be valued as a 2 bed for the purpose of a right to buy application.
the RTB scheme generally is controversial as it is removing council housing from the total housing stock and new council housing isn’t being built, the money from the sale doesn’t even all go back to your local council, it goes to central government and then a small amount is given back to whichever council sells it. The scheme has been stopped in Scotland and wales for this reason so if you can do it then do it now but on the other hand if you don’t absolutely have to use right to buy and can afford to buy privately then perhaps consider that option and let a family who need a home have your council house, in reality I can’t imagine anyone will turn down a big state funded discount though!
hope this helped
