Right to Acquire

Right to Acquire is a government scheme which allows many housing association tenants in England to buy their rented home at a discounted rate, provided you’ve rented from a public sector landlord for three or more years.

These include:

You can get a discount of between £9,000 and £16,000, depending on the value of the property and where abouts in the UK you live. Your discount may be reduced if you’ve used either the Right to Acquire or Right to Buy schemes in the past.

You can see potential discounts by location here: https://www.gov.uk/government/publications/right-to-acquire-discounts-by-location/right-to-acquire-discounts-by-location

You cannot use Right to Acquire if:

you’re being made bankrupt
a court has ordered you to leave your home
you’re a council tenant – you may be able to use Right to Buy instead
you have ‘Preserved Right to Buy’

How does it work?

The Right to Acquire process is pretty straightforward. You must first fill out a Right to Acquire application form and send it to your landlord.

Once the purchase price and discount is agreed you have 12 weeks to tell the Landlord you want to proceed. If you think your landlord has set your home’s market value too high, you must write to them within 3 months of getting the offer and ask for an independent valuation. If your landlord declines, they must provide you with a valid reason. You are not able to appeal against your landlord’s decision.

Assuming you meet all the requirements, you would apply for a mortgage to cover the rest in the usual way. Some lenders may wish for a minimum 5% deposit to come from your own personal funds.

You can also visit the government website and use the Right to Acquire mortgage calculator which will give you a general idea of your eligibility.

If you sell your home within 10 years of buying it through Right to Acquire, you must first offer it to your old landlord.

The property should be sold at the full market price agreed between you and the landlord.

If you cannot agree, a district valuer will say how much your home is worth and set the price. You do not have to pay for their valuation.

If the landlord does not agree to buy your home within 8 weeks, you can sell it to anyone.

Paying back your discount

If you sell your home within 5 years of buying it, you’ll have to pay back some or all of the discount you got.

If you sell within the first year, you’ll have to pay back all of the discount. On top of this, the amount you pay back depends on the value of your home when you sell it. So, if you got a 10% discount, you’ll have to pay back 10% of the selling price.

If you sell after the first year, the total amount you pay back reduces. You pay back:

80% of the discount in the second year

60% of the discount in the third year

40% of the discount in the fourth year

20% of the discount in the fifth year

Speak with one of our experts about Right to Acquire

Speak to our expert brokers on all types of mortgages, remortgages, even if you have bad credit. One of our expert brokers will be able to review your current situation and advise on the best way of moving forward with our knowledge and access to over 100 lenders. The initial advice is free, there is only a cost if you proceed with a mortgage.

0330 232 0285

Why use a mortgage broker for Right to Acquire?

Mortgage brokers can help you find the best deals on the market – not just from one lender. With a broker you’ll get:

Valuable knowledge, through years of experience helping customers to find mortgages
An improved chance at finding a mortgage, some mortgages are only available through a broker
Help with the application process, as usually just one application can be used across various lenders
Advice on how to improve your chances, for instance getting a guarantor or applying for a joint mortgage

About Clever Mortgages

We specialise in assessing an individual’s situation, and finding the right mortgage solution for them. We can help:

With remortgages, buy-to-let, and first-time buyers mortgages. We have experts who cover these areas
Even if you’ve got bad credit – we help people every day with a variety of credit histories to find the right mortgage
With applications, as we’ll take the hassle away. We require your details once and we’ll know the best lenders for your circumstance
Our team know the lenders that are most likely to say ‘yes’, and give you the best rates

What should I do next?

You enquire online with us today or request a call back
Our simple form takes a couple of minutes to fill in, this gets the ball rolling

One of our experts will give you a call to find out more about your situation
We have experts in remortgaging, who focus solely on helping customers save money