Shared
Ownership
The
right to buy scheme is sometimes referred to as a council
mortgage. A council owned property
can
be offer to a long term tenant on a right to buy mortgage
scheme so that the tenant can own the property but at
a discounted price.
This
is a great way to get people on lower earnings on the
housing ladder. The tenant would have to be renting for
a minimum of two years.
Some
lenders may potentially except a borrower with a poor
credit history. The lender will always have to receive
the official paperwork from the council authorising the
scheme. Most high street lenders will have a right to
buy mortgage type mortgage.
The
discount on houses and flats can be quite substantial.
This may potentially allows the buyer an opportunity to
make a healthy profit if property prices were to rise
which they have done in recent years.
Though
this does not predict the future trend. This excellent
scheme was introduced in the uK in the 1980's by the Conservative
Government to encourage home ownership and to remove the
burden and costs away from local council.
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