Right to Buy Mortgages with CCJs- A Brief Description
The Right to Buy scheme was introduced in 1980. The Right to buy scheme is a
policy that gives tenants of council housing the right to buy the house they are
residing in.
Right to buy means that one can buy a council home at a discount to the
existing market value. The discount available is based on the number of years
spent as a tenant.
A legislation to implement the Right to buy was passed in the Housing Act of
1980. This basically determined that the selling price of a house was based on
present market evaluations and also included discounts to show the rents paid by
tenants. This legislation gave the tenants the right to buy their house at a
discounted value, taking into account as to how long they had been living in
that house. This proved good for the housing market and many homes were sold.
The Right to buy rules were changed in 2005. A tenancy period of five years' was
required for new tenants to qualify, and properties that were purchased after
October'04 cannot be put up for sale. Owners have to approach previous landlords
and offer them the 'first right of refusal' or RSL. If the RSL does not offer
good purchase prices, then the owner has the right to offer the house to any
alternative RSL.
Right to buy mortgage with CCJs is a mortgage that comes under the aegis of the
right to buy your house legislation.
Qualifying factors for a right to buy mortgage, would be:
1. Should be the legal tenant of the property that one wishes to purchase.
2. Should have been a tenant of the Council or another 'right to buy' landlord
for a period of at least two years.
3. If one is entitled to a discount of the purchase price of the home, the
amount of discount is dependant on tenure of tenancy and the type of dwelling.
4. The borrower should be an assured tenant of a registered housing association
and a tenant at the same address prior to change in ownership.
5. Accommodation should not have been provided by one's employer or is not
provided due to any disability.
The right to buy initiative is recognised by most mortgage lenders and brokers
and they are in turn offering many types of mortgage plans some for customers
with County Court Judgements and options to their customers.
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