BCHF
Buying the home you rent
As a tenant you are able to apply to purchase your home through BCHF's Voluntary Purchase Scheme (VPS).
Some tenants also have the right to purchase their home through the Government’s Right to Acquire (RTA) scheme.
You have the right to purchase your home through the Right to Acquire if you meet the following criteria:
- If you have been a tenant in public housing since before 18 January 2005, you need to have been a tenant in public housing for at least two years. If your first public sector tenancy started on or after 18 January 2005 you need to have been a tenant in public housing for at least five years;
- You hold a secure type of tenancy. BCHF’s starter tenancies are not secure. If you hold a starter tenancy then you will need to successfully complete your probationary period before you are given an ‘assured tenancy’ which is regarded as a secure tenancy. The starter period is for one year, unless it is extended by BCHF; you would be given reasons if this is the case;
- You have not been served with a court order for possession of the property (including a suspended possession order);
- You do not have a bankruptcy petition pending against you or you are not an undischarged bankrupt;
- You have not made an arrangement with your creditors which has not yet been fulfilled (commonly an IVA);
- You do not have more than four weeks rent arrears at the time the sale is due to complete; and
- You are not subject to a Right To Acquire suspension order from the courts on the grounds of anti-social behaviour.
Flexible Tenure
In addition, BCHF currently offers tenants purchasing their home through the VPS access to a Flexible Tenure option. This gives you the opportunity to purchase a percentage share of the property in a similar way to Newbuild Homebuy. You then pay a mortgage on the part you own and an affordable rent on the part you do not own. The rent is charged at the rate of 2% of the unsold equity of the property per year. Go to our Home Buy page for more information.
If you purchase through the RTA you will benefit from a discount of £13,500 on the value of the property. Similar discounts are currently available if you purchase through the VPS, but you need to have lived in social housing for at least five years to qualify and it is dependent on the availability of grant funding so is subject to change.
The main differences between the schemes are summarised in the table below:
| Right to Acquire (RTA) | Voluntary Purchase Scheme (VPS) | Flexible Tenure | |
| Available to: | All tenants whose homes were built with the aid of public subsidy (note 1) | All tenants (note 1 and 3) | All tenants (note 1 and 3) |
| Is the opportunity to purchase a legal right? | Yes – it is a statutory right through the Housing Act 1996 (note 1) | No – it is a BCHF scheme and not a statutory right | No – it is a BCHF scheme and not a statutory right |
| Are you allowed to purchase less than 100% of your home? | No | No | Yes – providing you purchase at least 25% |
| How much does it cost to purchase? | The full value of the property less a discount of up to £13,500. | The full value of the property less a discount of up to £13,500. | The full value of the property less a discount of up to £13,500, with the net amount adjusted for the % of the property you purchase |
| How much will the mortgage be? | This will depend on your personal circumstances. For illustration, a mortgage for £150,000 at 7.0% would cost around £1,000 per month. | ||
| Are you responsible keeping the property in good condition? | Yes – you are required to pay for the all of the repairs, and maintenance of the property | ||
1 - There are certain conditions that have to be met as set out in the main section of the leaflet
2 - Discounts for VPS and Flexible Tenure are dependent on the availability of Government grant, which are currently available through the Social Homebuy scheme. Eligibility is similar to that for the Right to Acquire (see page 2 of the leaflet)
3 - Applications are subject to an assessment of your financial circumstances.
For further information, download our ‘Purchasing Your Home’ leaflet (below), or you can contact Allister Young on 0117 9319775 or email allister.young@bchf.co.uk
Purchasing Your Home136kb
