Rent-to-Buy - what is it?

Rent-to-Buy is one of the names given to a scheme where a tenant has the opportunity to rent a property and has the legal right to buy it within an agreed timescale for an agreed price.

 - No bank or finance approval is required
 - Purchase price is fixed
 - You can be in the house in less than 10 days
 - If you are not sure about buying, then try before you buy
 - Buy when you are ready (within the term of the agreement)
 - You can sell without buying and pocket the difference
 - The scheme allows you to improve your credit rating

Whilst the government are introducing their own scheme, to help first-time buyers on low incomes into their first home, the majority of the Rent-to-Buy schemes are operated privately. Not only can private schemes help first-time buyers onto the property ladder, they can also help homeowners move up the property ladder into bigger and better homes that they maybe cannot buy now. Such private Rent-to-Buy schemes do vary and it is therefore important that you understand the terms of the scheme you are considering.

How does it work?

Do you know how a bank loan works?

Well this works the same way. You put down some money towards the property and then you make payments on the balance.

Just like with a conventional mortgage, here you have a term over which to pay the balance and an interest rate. These variables are different on every property. After a number of years (whenever works for you) we do encourage you to transfer over to a bank and pay off the property.

There is solicitor involvement just like a normal sale.
 
Just like a conventional mortgage, you have the benefits of living in the property, renting it out or selling it on at any point you choose.

How much do I have to put down?

This will vary depending on each property. We will have a minimum amount requested - as long as you can afford that minimum you are in the running!

Is this new, I haven't heard of this before?

This method of transacting property is quite common place in Australia, New Zealand and the US.

We believe it will gain momentum here in the UK in the medium to long term.

If you would like to know more about our available properties or register your interest please do not hesitate to contact us.