What Right To Buy Discount Will You Get?
2 What Right To Buy Discount Will You Get?
You can get a discount on the market value of your home when you buy it if you qualify for Right to Buy.
The maximum discount is £84,200 across England, except in London boroughs where it’s £112,300. It will increase each year in April in line with the consumer price index (CPI).
The discount is based on:
- how long you’ve been a tenant with a public sector landlord
- the type of property you’re buying – a flat or a house
- the value of your home
- To be eligible for the maximum Right To Buy discount you must demonstrate that you can afford all of the costs
If you’re buying with someone else, you count the years of whoever’s been a public sector tenant the longest.
You’ll usually have to repay some or all your discount if you sell your home within 5 years.
You might get a smaller discount if you’ve used Right to Buy in the past.
2.1 Affordability Checklist
When working out the affordability of a home purchase using the Right to Buy scheme, as well as the amount of discount you’ll get on the purchase of your home, consider the following:
- You won’t be eligible for housing benefit if you become a homeowner.
- Consider getting a life insurance quote before getting a mortgage in case anything happens to you while you’re paying back your loan or mortgage (many lenders require this).
- Even if you don’t need a mortgage yourself, check whether lenders are willing to give loans or mortgages on the type of house or flat you are buying. If you want to sell in the future, people interested in buying your property might need a mortgage.
- Always check costs upfront before signing anything.
- Remember the value of your home can go down as well as up.
- Interest rates can also go up as well as down.
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Contains public sector information licensed under the Open Government Licence v3.0
