Right to Buy

Posted on 23 April 2010 by Taiwo

My partner is a day trader and self employed, but has little money coming in. He has a bad credit score and he has been offered the right to buy his property by the council.

What can he do?


Your partner has 3 months to tell his Landlord whether or not he is going to take up his right to buy and it does not sound to me that this will be long enough to rearrange his finances.

Unless he has the cash to purchase the property, he will need to arrange a mortgage and I think he will find this very difficult in his current circumstances.

I suggest that he takes the following steps:

1) Obtains a copy of his credit report to determine what, if any, adverse records are showing. If he uses one of the main agencies, such as Experian, Equifax or Call Credit they normally have a free offer available to do this.

2) Considers asking an accountant to prepare a profit and loss statement showing his income for the last 3 years or makes sure he has copies of his self assessment tax returns and any tax calculation forms (SA302) from the Inland Revenue.

3) Saves at least a 10% deposit based on the reduced purchase price.

4) Consults an independent mortgage broker about his situation.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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