Who is eligible?

Neither scheme applies to tenants who have suspended tenancies or anti social behaviour orders; and do not apply to properties scheduled for demolition, let with your job or particularly suitable for elderly persons. They are not available to shared owners, lessees or assured shorthold tenants.

Right to Buy

If you brought a right to buy tenancy over from Bedford Borough Council when bpha bought your home with you in it from the Council in June 1990, then you may have a preserved RTB with bpha. It does not apply to any tenants who have joined us in any other way.

Right to Acquire

RTA is only available on some properties bpha have bought or built with public money since 1997. Most village properties are excluded no matter when we acquired them. You must have two years tenancy (or five years in the case of those taking up a public sector tenancy for the first time).  

If you would like your individual case to be assessed or if you have any questions, please phone Elaine Peet on 01234 221337.  

Things you should consider

Buying a property is a major financial commitment; probably the biggest financial decision you will ever make. So take time to consider whether it is the right choice for you. Initially there will be the one off costs of buying. Then long term apart from paying for it (upfront in cash or with a mortgage), you will have to maintain it, insure it and pay yearly service charges if it is a flat or maisonette.

One off costs

You should employ a solicitor or licensed conveyancer to look after the legal side of buying your home. Always ask how much their advice will cost before you employ someone - bpha can help you approach a solicitor if you are not sure. Your mortgage lender can tell you which solicitors it accepts so that you don't have to pay out twice.

You should also have a survey of your home done. The Understanding Property Surveys of the RICS website has information on different types of surveys. You can choose between a homebuyer's report for advice on significant defects only, or a building survey - a more detailed inspection that can cost upwards of £500. Your mortgage lender can tell you which surveyors it accepts so that you don't pay out twice.

If you take out a mortgage you will have to pay arrangement costs and also the lender's valuation fee. When the sale is completed you must pay the Land Registry to register you as the new owner. Your solicitor will arrange this. You may also have to pay Stamp Duty , a tax worked out as a percentage of the price you pay for a property.

Ongoing costs

Unless you can buy your home with cash, you will need a mortgage (i.e. a loan).   There are various kinds which your bank or building society can tell you about.   The Financial Services Authority Consumer Helpline on 0845 606 1234 has a free guide to mortgages which you may find helpful.  

The value of homes can go down as well as up and in some cases people find themselves in negative equity. This is when your home becomes worth less than what you paid for it. If you can't keep up the repayments on your mortgage, the lender may go to court and ask to take over your home. bpha and Bedford Borough Council do not have to give you another tenancy if you lose your home in this way.

It is also essential to have buildings insurance to cover the full cost of rebuilding your house if it were destroyed by fire or some other incident. A mortgage lender will insist that you have this but it may not apply to flats as the owner of the block will usually insure the whole block and then recharge you in the service charges. Both house and flat owners should have home contents insurance against theft and other risks.

You may also consider life assurance to pay off your mortgage if you die before you have made all the payments. It means your family is not left with the debt. It is also a good idea to think seriously about how you would meet your mortgage repayments if you lost your job through unemployment or ill-health. You cannot fall back on housing benefit when you are a homeowner. In some cases, mortgage protection insurance can give you extra security.

It is essential to get independent professional advice about all these matters.

You will also have to budget for utility costs such as council tax, water charges, sewerage charges, gas and electric.

Repairs and maintenance

If you buy a house you will be responsible for all the costs of repairing it and maintaining it in a good state to protect your investment, regardless of the condition of the property when you bought it. It is your responsibility to get advice on the condition of your home before you complete the purchase.

When you buy a flat or maisonette you will usually be responsible for repairs relating to the inside of your own flat, but you will also have to pay yearly service charges to the owner of the block to cover the costs of maintenance, improvements or major works to the building and the communal areas. If the owner carries out a lot of work, your service charge bill for that year could be several thousand pounds, and if you do not pay a bill that is reasonable, you could lose your home. The Leasehold Advisory Service website www.lease-advice.org.uk has useful information about buying flats.

Other knock-on effects of buying

As a tenant, you may have been able to claim housing benefit to help with your rent.   As an owner-occupier, you will not receive any housing benefit to help with your mortgage costs. You may be entitled to income support to assist with housing costs, but this is not usually payable for 39 weeks after you first claim it. You can get up to date information on this from Social Services or the Citizens Advice Bureau.  

If you are elderly and own your home, its value may be taken into account in assessing whether you are eligible for financial help with the costs of residential care. You may be able to get advice about this from the Age Concern fact sheets via their website www.ageconcern.org.uk.

Companies offering advice

If you are approached by a person or company offering to help you, check out what's in it for them. There may be no up front fee, but you may have to sign a direct debit to pay a large amount after the sale completes for administration, form filling etc. These are not reasonable costs. The loan rates they are offering may be higher than you could get on the high street, or they may start off low but have a clause allowing the rate to go up significantly after a period of time. You must always read the small print thoroughly and if you do not understand anything, ask questions and get professional advice. Companies who send out leaflets, telephone or call round sometimes make misleading claims about the service they offer. bpha want to know about all instances of it happening so we can follow it up with the local Trading Standards Office. Please send us any leaflets or letters you get.

This information sheet is not a full interpretation of the law and you should always get independent legal, financial and property advice.