Last reviewed: May 2026
Right to Buy gives qualifying council tenants the legal right to purchase their home at a statutory discount. Specialist lenders advance against the discounted purchase price, meaning many qualifying tenants can complete a Right to Buy purchase without any saved deposit.
Initial discussion free. A broker fee of £299 is payable if you proceed.
Right to Buy is a government scheme giving qualifying council tenants the right to buy their home at a statutory discount of up to £96,000 in London or £64,900 elsewhere. Specialist lenders advance up to 100% of the discounted purchase price, using the discount as the deposit. A minimum of 3 years as a public sector tenant is required to qualify.
Enter your property's market value, tenancy length and location below to estimate your Right to Buy discount and discounted purchase price.
This calculator provides an estimate based on standard Right to Buy discount rules for England. Maximum discounts are capped at £64,900 (outside London) and £96,000 (London boroughs). Actual discount confirmed by your local authority in the Section 125 Notice. This is not a mortgage offer or commitment to lend.
The discount percentage increases with tenancy length, subject to the regional cash cap. Houses and flats have different percentage schedules.
| Tenancy Length | House Discount | Flat Discount | Cash Cap (Outside London) | Cash Cap (London) |
|---|---|---|---|---|
| 3 to 5 years | 35% | 50% | £64,900 | £96,000 |
| 6 years | 36% | 52% | £64,900 | £96,000 |
| 10 years | 40% | 60% | £64,900 | £96,000 |
| 15 years | 45% | 70% | £64,900 | £96,000 |
| 20 years | 50% | 70% (capped) | £64,900 | £96,000 |
| 30+ years | 60% (max) | 70% (max) | £64,900 | £96,000 |
Houses: discount increases by 1% for each complete year of tenancy beyond 3 years. Flats: discount increases by 2% for each complete year beyond 5 years. Both subject to the cash caps above. Discount confirmed by local authority in Section 125 Notice. Last updated May 2026.
The statutory Right to Buy discount functions as an equity contribution. Specialist lenders treat the gap between the full market value and the discounted purchase price as the buyer's deposit stake in the property. This is why many qualifying tenants can purchase their home without needing any cash savings.
Most specialist Right to Buy lenders advance up to 100% of the discounted purchase price. Where the discount is 35%+, the lender is typically lending at 65% or less of the full market value — a highly secure LTV position despite advancing the full discounted price.
Buyers with savings can combine them with the discount to reduce the mortgage required or access a lower LTV rate band. Woodhall Mortgages models whether contributing savings improves mortgage terms sufficiently to justify using them rather than retaining them as an emergency fund.
Where the property value is high relative to the maximum cash cap, the capped discount alone may not meet some lenders' LTV requirements. Woodhall Mortgages identifies which lenders apply market value LTV limits and models any additional cash deposit required for the specific property and discount level.
Selling a Right to Buy property within five years of completion requires repayment of a proportion of the original discount. The liability is 100% in year one, reducing by 20% for each subsequent full year of ownership. After five complete years no repayment is due. This liability is registered on the title and enforced by the local authority on any sale within the window. First-time buyers must factor this into their financial planning before proceeding.
Right to Buy eligibility requires a minimum of three years as a public sector tenant, occupation of the property as the only or principal home, and the property must not be excluded from the scheme.
The minimum qualifying period does not need to be continuous at the same address or with the same landlord. Time as a tenant with different councils, different housing associations, or in armed forces accommodation all counts toward the three years. A tenant with two years at a previous council address and two years at their current address has four qualifying years. The local authority confirms the qualifying period in its response to the RTB1 application.
Up to three family members who have lived in the property as their principal home can be included as joint Right to Buy applicants, combining their incomes for the mortgage affordability assessment. This is particularly valuable where the sole tenant's income produces insufficient maximum borrowing for the discounted purchase price. The family members do not need to be named on the existing tenancy agreement — they need only to have lived at the property as their principal home for at least the last 12 months.
Not all council properties are eligible. Properties specifically designed or adapted for elderly or disabled occupation, properties scheduled for demolition, and properties subject to certain regeneration designations may be excluded. Some local authorities have obtained exemptions in areas of high housing demand. The local authority confirms eligibility of the specific property in its response to the RTB1 application. First-time buyers should not begin the mortgage process until written eligibility confirmation has been received.
A first-time buyer has been a secure council tenant in a three-bedroom terraced house for fourteen years. The property market value is £155,000. The Right to Buy discount for a house at 14 years is 46% (35% base + 11 years x 1%), representing £71,300. The discounted purchase price is £83,700.
The buyer has a household income of £32,000 and minimal savings. At four times income the maximum borrowing is £128,000, comfortably exceeding the £83,700 discounted price requirement. A specialist Right to Buy lender advances 100% of the discounted purchase price of £83,700, representing 54% of the full market value of £155,000. The lender issues a mortgage offer at a rate reflecting the low effective LTV against market value.
The buyer completes the purchase of their council home without contributing any cash deposit. The five-year discount repayment liability is noted in the mortgage offer conditions and registered on the title.
This example is simplified and for illustration only. Actual outcomes depend on income, affordability assessment, credit history, lender criteria and current mortgage rates. Figures do not constitute a quotation or offer to lend.
The Right to Buy mortgage process follows the local authority application sequence. Speak to Woodhall Mortgages before paying any reservation fees or committing to the Section 125 offer.
Complete the RTB1 form and submit to the council. The local authority has four weeks to confirm whether the application is accepted and the property is eligible. This confirmation is required before any mortgage process can begin.
Once accepted, the local authority issues a Section 125 Notice setting out the full market value, discount amount and percentage, discounted purchase price, and five-year repayment terms. Provide this to Woodhall Mortgages before any mortgage application is submitted. You have twelve weeks to accept or decline the offer.
Calculate the mortgage needed as the discounted purchase price minus any savings to contribute. We model whether contributing savings improves mortgage terms or whether retaining them as an emergency fund and taking the maximum Right to Buy advance produces better outcomes.
Appoint a solicitor experienced in Right to Buy transactions, local authority contracts, discount repayment charge registration and Section 125 requirements to manage the legal aspects of the purchase.
Contact Woodhall Mortgages with the Section 125 Notice details. As a whole-of-market mortgage broker, we consider mortgages from across the market to identify appropriate Right to Buy lenders for your property type, discount level and income profile, and submit a single application without hard search damage from mainstream lenders who do not accept discount-funded deposits. A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer.
Right to Buy mortgage applications have distinct requirements compared to standard purchases. Here is what Woodhall Mortgages handles for qualifying council tenants across the UK.
Review of the offer notice confirming market value, discount calculation, discounted purchase price and five-year repayment terms before any mortgage application is submitted.
Whole-of-market identification of Right to Buy lenders whose criteria matches the specific property type, local authority, discount level and income profile, with soft search pre-qualification to protect your credit file.
Specialist assessment of how the statutory discount is treated as a deposit by individual lenders, confirming the maximum advance available for your specific property value, discount level and income.
Specialist advice on joint Right to Buy applications combining the qualifying tenant with family members, including combined income assessment and lender identification for joint applicants.
Assessment of the Right to Buy property including construction type and floor level, identifying lenders comfortable with the specific security profile and advising on any additional survey requirements.
Income and affordability assessment confirming maximum borrowing against the discounted purchase price and whether contributing any available savings to reduce the mortgage produces materially better terms.
Call 01422 354011 or use the form below. We review your Section 125 Notice and identify the right lenders before you commit.
Get Right to Buy Mortgage AdviceReviews reflect individual experiences and do not guarantee similar outcomes.
Call 01422 354011 or use the form below. Once you have your Section 125 Notice, we identify the right lenders and manage the application from start to offer.
A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. This fee is non-refundable once charged. We may also receive commission from the lender. Your home may be repossessed if you do not keep up repayments on your mortgage.
Get Right to Buy Mortgage AdviceFinancial promotion: This page is a financial promotion. Woodhall Mortgages is authorised and regulated by the Financial Conduct Authority (FRN 762513). As a whole-of-market mortgage broker, we consider mortgages from across the market, subject to lender criteria and product availability. Not all lenders or products may be included.
Right to Buy: Right to Buy is available to qualifying secure council and housing association tenants in England with a minimum of three years public sector tenancy. Maximum discounts are £96,000 in London boroughs and £64,900 elsewhere. Properties sold within five years require discount repayment on a sliding scale from 100% in year one to nil after five full years. Not all properties are eligible and local authority confirmation of eligibility must be obtained before any mortgage application is submitted.
Broker fee: A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. This fee is non-refundable once charged. We may also receive commission from the lender.
Your home may be repossessed if you do not keep up repayments on your mortgage. Last reviewed: May 2026.
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Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home.
Woodhall Mortgages Ltd is authorised and regulated by the Financial Conduct Authority under reference number 762513.
