The Complete Right to Buy process…
An easy, step-by-step guide to purchasing your council property.
Remember, we can help you through all of these steps,
simply call 0800 9700569 for free advice and assistance.
1. Applying to buy -
Call your landlord and request your Right to Buy claim form (RTB1). These are available free and you can also collecting them from your local council office. We can help you complete the form; this form will help the council decided whether you have the right to buy and how much discount you receive, so it is important to complete it carefully. Return the form to your landlord, this is best done in person to the council office, this ensures that the form has been received. Keep a copy of the completed form for your records.
2. Your landlords Response Notice -
After receiving your claim form the council will send you a notice to let you know whether you have the right to buy (RTB2). You should receive this within 4 weeks of their receipt of your RTB1 form.
3. Landlords Sale Notice -
If the council agree to sell you the property they must issue with an offer notice, called a Section 125 Notice. This document will detail the council's value of the property, the discount you will receive, the purchase price, and also the terms and conditions of the sale. The Section 125 Notice must be sent to you within 8 weeks of you receiving your RTB2 form for a freehold property (house), and 12 weeks for a leasehold property (flat or maisonette).
If you are not satisfied with the valuation which you have received, you may appeal to the district valuer. If you wish to take this action you must inform the council within 8 weeks of receiving your Section 125 Notice. This appeal in no way assures you of a lower council valuation.
Need help? Give us a call on 0800 9700569 or click here
4. Telling your landlord what you wish to do -
You must inform the council within 8 weeks of receiving your Section 125 Notice whether you wish to proceed with the purchase. Feel free to call us to discuss your fIf you do not respond you may lose the right to buy. If you do decide to proceed at this stage, you can still decide not to buy at any stage up until you have your mortgage offer.
5. Seeking finance for your right to buy purchase -
When you know how much you need to borrow and what discount you are entitled to, it is time to ensure that you can secure finance for the purchase, and your adviser can now get you quotes for your mortgage.
6. Getting agreed -
At this stage your mortgage adviser will want to carry out an Agreement In Principal (AIP), this is the process through which, using credit scores, credit searches and other relevant searches, the chosen mortgage lender will agree or decline to lend you money on the property. This decision will be based upon details given about your property, your financial situation, your employment status and other relevant factors.
Need help? Give us a call on 0800 9700569 or click here
7. Your mortgage application -
When you have been approved for your mortgage it is now time to submit a full application to the mortgage lender. You will be required to complete an application form, with the help of your mortgage adviser, and provide necessary documents, including personal and address identification, your Section 125 papers and fee agreements. We are aware that many of our clients are unable to pay all of the associated costs for their mortgage up front, so we will pay all fees for you, and your solicitor will refund us the same amount on completion of your mortgage, this is why we will ask you for a signed fee agreement.
8. Your property valuation-
Although the council have carried out a valuation of your property, the mortgage lender will ask to carry out a second inspection to satisfy themselves that the property is suitable security for a mortgage. This second valuation will give us the open market value of the property (how much it would make if you sold it), the rebuild value of the property (how much it would cost to rebuild), and any serious structural defects or unusual construction which will reduce the suitability to lend. The lender will usually charge a fee for this, which we can pay for initially, and which will be refunded to us on completion.
9. From application to offer-
We have a dedicated administration team to look after your application from submitting the case to the lender until we receive your mortgage offer. They will deal with any queries you may have, and liase with the solicitors, lender and council to ensure that everything proceeds as quickly and smoothly as possible.
Need help? Give us a call on 0800 9700569 or click here
10. The Mortgage Offer -
When the lender has received the valuation and all of your supporting documentation, they will produce a mortgage offer. This document will detail the mortgage terms and conditions. You will receive a copy of the offer, along with the solicitor and your mortgage broker. The solicitor will contact you to sign a copy of your offer and also any other necessary legal paperwork.
11. Insurances-
Before you complete on your mortgage it is imperative that you have buildings insurance in place. There are also related insurance products which we will discuss with you when have received your mortgage offer, including life insurance and income protection.
12. From Offer to Completion -
We have a dedicated administration team who will deal with your case from receipt of your mortgage offer until completion. They will liase with you and the solicitor to ensure all relevant documentation is in place, and ensure everything proceeds as quickly as possible. On completion your solicitor will forward our fees to us, and any extra cash which you have requested straight to you.
Complete Mortgage Centre can now help you with the following: -
- Borrowing further funds
- Remortgaging after any initial fixed or discounted rate
- Purchase of any second or subsequent properties
- Any further insurance needs, will writing, or any other financial services needs
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