 A
guide for tenants regarding being able to afford to buy the council
home you're living in.
For those tenants who are considering the right to buy scheme
there are a number of options to consider when funding the purchase.
The obvious method is to pay cash for your new dwelling, however,
for most some form of borrowing is required. This can be in the form
of a loan from a member of the family or a friend, or a loan secured
on a property, or a mortgage.
With so many mortgages to choose from, it is easy to see why
consumers are often confused regarding which is the most suitable.
Fortunately the Financial Services Authority or (FSA) who regulate
the industry on behalf of the Government have published a free user
friendly guide covering the different types of mortgages available.
Consider visiting the
FSA website for
more information. Advice on all types of loans are also available
from local banks, building societies and independent financial
advisors.
It is worth remembering that there are other costs associated
with right to buy, including upfront fees and ongoing expenses.
Upfront costs when buying any property could include legal costs,
for example, a solicitor is usually required to handle property
purchase. If you are taking out a secured loan or mortgage it is
likely the lender will require a survey on the house or flat you
intend to buy. This is to satisfy the lender that the house is in a
reasonable state of repair and is worth the asking price. Other
associated costs when buying a property include land registry search
fees and possible stamp duty if this applicable.
Once the property has been purchased, other possible ongoing
costs to budget for include council tax, insurances, ground rent
charges if the property is leased, utility charges such as gas,
water and electric, council tax, maintenance expenses and the
mortgage or loan repayment.
Please Note! YOUR
HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR
OTHER LOAN SECURED ON IT. ALL SECURED OR UNSECURED LOANS ARE SUBJECT
TO STATUS. SECURED LOANS ARE SECURED ON PROPERTY.
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IT IS IMPORTANT THAT YOU READ ALL THE
LEGAL NOTICES ON THIS WEBSITE.
Please note, the services and information on this site do not
constitute any form of advice or recommendation by UK Property
Business Plan and are not intended to be relied upon by users in
making any order or purchase. Appropriate independent advice should
be obtained before making any such decision.
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