In 1980 the Conservative Government introduced the Right to Buy scheme. This is a policy whereby council tenants in England and Wales can buy the property they are renting. They become entitled to buy the property at a discounted price, provided they have been living there for at least two years.

Fantastic Opportunity
It has been, and continues to be, a wonderful opportunity for council tenants in England and Wales to buy their own home. But for the discount, tenants may find it impossible to "get their feet on the property ladder." This discount increases in a rough proportion to the number of years the tenant has been paying rent.

Applicant Rights
The Right to Buy applicant must have been a public sector tenant for at least 2 years. If they live in a house, the discount will be between 32% and 60% of the council's valuation. If they live in a flat, the discount will be between 44% and 70% of the council's valuation. Even if a tenant has been a member of the Armed Forces prior to moving into the council property, their service years can also count towards the discount received.

Cash Limits
There are cash limits on Right to Buy discounts, and the current cash limits are:

• £16,000 - in London or the South East
• £34,000 - in the Eastern Region
• £30,000 - in the South West
• £26,000 - in the North West or the West Midlands
• £16,000 - in Wales
• £24,000 - in the East Midlands or Yorkshire and the Humber
• £22,000 - in the North East

Council Discounts
The council discount was initially £50,000 maximum in London and the South East when the scheme was introduced. The discount was reduced to £38,000 in 1999, and to £16,000 in 2003. This might suggest that councils are being less flexible, though with Money Highway, flexibility is paramount.

Consumer Choice
Our organisation has 100's of Right to Buy clients, who have used a discount to act as their deposit. If a client has their council's permission to buy outright, Money Highway can obtain a mortgage for them even if:

• The tenant has little or no savings to act as a deposit
• The tenant has rent arrears
• The tenant is in part time employment
• The tenant has defaults, CCJ's or other bad credit

Our Approach
We are dynamic in our approach to Right to Buy mortgages. We have a friendly, experienced, and understanding team of dedicated advisors. We talk our clients through the process from beginning to end. Buying their own home is probably the biggest financial decision they will ever make. We are specialists in the Council Purchase market, and we offer:

• Expert, friendly and sympathetic advice
• Everything explained in plain English
• No deposits
• All costs, including solicitors fees, can be built in to your mortgage

Understanding
We understand that the Right to Buy can be complex and that you need someone alongside you to guide you through the maze. We can arrange everything for you. This can include life cover, mortgage protection, a solicitor, buildings and contents insurance, and a mortgage with increased borrowings for home improvements.

Right to Buy Doumentation
If you have requested your Right to Buy documents from the council, please contact us, and we will be more than happy to make your dreams a reality. Even if you have County Court Judgements, had IVA's, or even been previously repossessed, we are still likely to be able to help.

Help from Right to Buy Scheme
The Right to Buy scheme has helped almost 2 million council tenants in England buy their own home. In many cases, it has encouraged more affluent tenants to remain in the neighbourhood in which they have lived for many years, helping create stable, mixed income communities.

How To Apply To A Right To Buy Scheme
This is a brief description on how to apply.

• First, make sure you have read the booklet "Your Right To Buy Your Home."
• If you consider that you have the right to buy then the next step is to fill in form RTB1, which can be obtained from your landlord.
• If you have the Right to Buy then your landlord will send you a Section 125 notice which tells you, amongst other things, the price you must pay, less the discount, and the terms and conditions of the sale.
• You then need to arrange the mortgage (call Money Highway) and continue with the purchase as with any other property transaction.

Section 125
A Section 125 notice can be the Holy Grail for a mortgage borrower. As already stated, there are many details on this form. The most important, for the vast majority of tenants, is the value of the property and the discounted purchase price (DPP). Money Highway, in plain English, will discuss the possibilities open to the borrower with this document.

Get on the Property Ladder
In today's climate the Section 125 notice is an excellent way to get onto the property ladder without having the fuss of saving for a deposit. With recent property price rises and low interest rates, the tenant may even pay less on a mortgage arranged through Money Highway than on rent!

Mortgage Arrangement
Money Highway can arrange mortgages on the DPP, or we can even raise money over and above the purchase price to help towards home improvements. This is due to the fact that some of the mortgages arranged through our company can be sourced against the open market valuation (OMV), and not against the council's valuation. The OMV is often considerably more than the council's valuation. This gives our client's access to increased borrowing. Perfect for that new kitchen, double glazing, or other home improvement they have dreamt about.

3 Examples
Here are 3 examples, the first 2 of which are genuine Money Highway clients, with their names changed for privacy.

Mrs Pasha.
Mrs Pasha has been living in her flat in Sydenham for 17 years.
The council valued her property at £110,000 and she has received the full discount of £38,000. Therefore the DPP is £72,000.
Her property is in a tidy condition, so she does not want additional borrowing.
The lender from whom she plans to borrow the money values the property at £130,000.
This is the OMV price.
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She proceeds with a mortgage of £72,000 through Money Highway.
Her monthly rent used to be £380.
Her monthly mortgage payment is £330.

Mr Peters.
Mr Peters has been living in his flat in Brixton for 8 years.
He had previously been renting with the same council in a different area for 2 years.
He served in the Armed Forces for 5 years.
The council valued his property at £87,500 and he has received the full discount of £38,000.
Therefore the DPP is £49,500.
His property needs double glazing, a new kitchen, and a new bathroom.
The home improvement bill will be over £31,000.
The lender from whom he plans to borrow the money values the property at £95,000.
This is the OMV price, and through Money Highway he obtains a loan of 85% of the OMV.
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He proceeds with a mortgage of £80,750 through Money Highway.
His monthly rent used to be £360.
His monthly mortgage payment is £353.

Miss Marfleet.
Miss Marfleet has been living in her house in Southwark for many years.
The council valued her property at £150,000 and she receives a discount of £16,000.
Therefore the DPP is £134,000.
She loves the idea of a conservatory and a new master bedroom.
The home improvement bill will be over £26,000.
The lender from whom she plans to borrow the money values the property at £190,000.
A company who Miss Marfleet had previously approached was only going to obtain her a loan of 85% of the council's valuation.
She would have had to find £6,500 for a deposit.
Money Highway sourced through their panel of 400+ lenders a loan of £85% of the OMV.
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She proceeds with a mortgage of £161,500 through Money Highway.
Her monthly rent used to be £525.
Her monthly mortgage payment is £706.

No Longer Just Dreams
Our company can turn people's dreams into reality.
All a client needs is a Section 125 notice.
Money Highway can help complete the rest of the process.
We are passionate about people switching from the "dead money" of rent to the endless possibilities of a mortgage.
If a property grows in value, and properties have been doubling in value every 7 years since World War II, then a mortgage debt can be a very good debt to have.