Housing Bill - Changes in the Right To Buy Scheme
Presently council tenants are able to purchase their rented
property after 2 years of tenancy. However, this is about to
change. As of the 18th January 2005, the new Housing Bill becomes
law and the current 2 years will change to a period of 5 years.
This means, that once the proposals come into force, any new
council tenant will have to wait 5 years before having the option
of buying their property.
There is also a proposal to extend the period during which
landlords can require owners to repay some or all, of the
discount given on a property in the case of an early resale.
Currently, purchasers of a property that has been bought on
the right to buy scheme, can sell after 3 years with no
requirement to make any repayments of the discount. The proposal
suggests this should be extended to 5 years. Therefore, anyone
who sells a property bought under the right to buy scheme within
5 years of the purchase, will be requested to repay a percentage
of the given discount. Repayment figures are as follows: -
Sale within the 1st year - 100%
Sale within the 2nd year - 66%
Sale within the 3rd year - 33%
Sale within the 1st year - 100%
Sale within the 2nd year - 80%
Sale within the 3rd year - 60%
Sale within the 4th year - 40%
Sale within the 5th year - 20%
With the predicted drop in house prices in 2005 (meaning lower
property valuations) combined with the new proposals further
restrictions on council tenants wishing to purchase, now may be a
good time to consider a right to buy.
The proposed changes in the right to buy scheme include
measures to reduce the attraction of purchasing a discounted
property with the prospect of selling it to make a profit.
The initial idea of the right to buy scheme was to give
ordinary families the opportunity to own their own homes,
something they may not have been able to afford otherwise.
However there are concerns about the effects this has had on
local housing stock and a number of people profiteering from
potential windfalls in expensive property areas.
Exploitation in the Right to Buy Scheme
There have been several schemes where third party companies
encourage tenants to purchase their homes under the right to buy
scheme, by offering them cash incentives. The tenant purchases
the property at a discounted price under the right to buy scheme
and simultaneously exchanges contracts to sell the property to
the company after 3 years at which point no discount penalty will
be repayable. The tenant will lease the property to the company
and move out of the home with a cash sum. This leaves the company
free to rent out the property at the current market rental
After three years the tenant sells the property to the
company. The company will either continue to rent the property at
market rates or the property will be sold on at a substantial
The incentive for the tenant is the lump sum offered, which
can be anywhere from £5000 to £26000 but is usually a
percentage of the equity of the purchased property. This could be
attractive to tenants who do not wish to purchase their current
home or hope to purchase a property in another area as it will
give them a ready made deposit to buy another home.
The new proposals are designed to make this type of sale less
attractive and prevent profiteering as well as securing local
housing for the less well off.
The proposed changes in section 180 and 182-189 of the Housing
Act 2004 will come into effect on 18/1/2005.
For more information on a right to buy mortgage, visit
Nicola Bullimore has been working with people to resolve debt
problems for a number of years. For more information regarding
debt issues, please visit Debt Questions website.
MORE RESOURCES updated Tue. August / 22 / 2017
RELATED MORTGAGE AND REFINANCING ARTICLES:
Guide to Mortgage
Listed below is a guide to mortgage terms. It is a useful
list of definitions of mortgage terms that may or may not
be familiar to you.
What is an Interest Only
An Interest Only Mortgage is one where the repayments are
made up entirely of the interest on the loan. When the
mortgage term is complete, the capital originally borrowed
is still outstanding.
Homes, To Buy or Not
Whether you are just moving out on your own for the first
time, or you've moved ten times before, there is always a
big choice to make. Do you rent or buy your home? There are
valid arguments on both sides, and in different scenarios
either one could be the right choice.
Online Mortgage in UK -
Introducing the Best Mortgage Plan Across UK
Add the term 'online' and it will open for you an
exhaustive assortment of opportunities. Add online to
mortgage and it will have the same effect.
Home Equity Line of
Credit - Finding The Best Home Equity Lender
Borrowing against the value of your home using a revolving
credit account is known as a home equity line of credit.
Lenders offer home equity lines of credit in several ways
with either fixed or variable interest rates.
How to Save Money by
Using an Independent Commercial Mortgage Broker
Being a creature of habit can cost you plenty when it comes
to applying for a commercial mortgage instead of going
through an independent commercial mortgage broker. Let me
tell you why.
Be Prepared With Your
Home Equity Loan Checklist
A home equity loan can be an excellent way to obtain money
in order to pay off high interest bills or consolidate your
current debt into one monthly payment. A home equity line
of credit is a form of revolving credit in which your home
serves as collateral.
Home Loans - Repair
Credit Errors in Three Days!
Most consumers are aware that a history of paying bills
late or not at all can hurt one's ability to obtain a loan.
All financial transactions are recorded by three credit
bureaus and offered to lenders upon request in the form of
a credit report.
Bad Credit Remortgage
Loan: When Bad Credit Plays Mischief With Your
Financial difficulties are married to bad credit. It is a
tough marriage but can be peaceful with a little bit of
Sub-Prime Mortgage Loans
- Things You Should Know About Sub-Prime
Sub-prime mortgages are not that much different from
average mortgages. They have interest rates, points, and
Outlined below is a useful remortgages guide. Remortgaging
has become increasingly popular due to the relatively
simple and flexible process.
Student Home Purchase
Tuition costs are climbing, housing costs are climbing, it
seems like all the costs for students are climbing these
days. Students can afford cost increases less than any
other demographic in Canada.
What Your Mortgage
Lender Is Not Telling You About Accelerated
For years, mainstream banks and financial advisors have
been recommending that you pay extra cash into your
mortgage account in order to cut down the huge interest
amount and reduce the period over which you pay back the
loan. For example, if you borrow $200,000 over 30 years at a
rate of 5%, your monthly repayments would be around $1074.
10 Things to Look for in
a Home-Equity Line of Credit
If you are a homeowner, you've probably received offers to
apply for a home equity line of credit (HELOC). Handled
with care, home equity credit lines can be an excellent way
to improve financial flexibility, provide readily available
cash reserves for emergencies, or pay for large expenses
(like college tuition or home improvements) that have
irregular payment schedules.
The Truth behind Pension
A pension mortgage may seem lucrative at the first sight.
However, they seldom are, if the customers who took pension
mortgage are to be believed.
Home Loans - Lenders
Continue to Offer High-Risk Loans
Home prices in the Untied States continue to soar, and the
remarkable run of real estate as the "must have" investment
continues. The median price of a new home, which only
recently crossed the $200,000 barrier, is now $215,000.
Home Mortgage Loans For
People With Bad Credit - 3 Ways To Improve Your Chances For
Finding home mortgage loans are a reality for people with
bad credit. By tapping into online home loan resources, you
can find financing to buy a home.
Be Prepared when Seeking
When you're looking for a mortgage, whether it's a first
time loan or you're taking advantage of an opportunity to
refinance an existing mortgage, it may seem that you're
wading through a quagmire of uncharted territory. If you're
prepared ahead of time, you'll avoid some of the common
pitfalls and know how to find the best deal for your
Using a Calculator to
Assess Your Loan
Buying a house is a very important step in your life. Every
family dreams of having their own home and whether you are
looking into your first, or are moving or upgrading your
home, you know your mortgage is important.
No Money Down Home
Are you in the market to purchase a home but are concerned
about not having enough money for the down payment? No down
payment home loans or 100% financing for your mortgage loan
used to be only advertised during late night infomercials
and in obscure real estate publications. The good news is
that if you want to buy a house but have little or no money
available for the down payment, there are mortgage lenders
who are offering no money down home loans in your area.
used office furnishings-supplies-equipment-desks-cubicles-service-counters for
sale in Akron Ohio
Die cast model cars for sale in Akron Ohio
used cars for sale in Akron Ohio
unfurnished homes for
rent in Akron Ohio
ARM compare rates find the best rates current in your area lenders read reviews calculator adjustable rate loan home lenders brokers
quotes florida houston gmac washington interest only 2nd software debt consolidation
reverse senior equity texas maryland options lending bad credit
option one ameriquest chase first banks emc residential california miami dallas est branch marketing
home company commercial yahoo online bad credit low credit no credit