Are you currently renting, but would you love to own your own home?
Lots of people would much rather be buying their own home, than just renting it…
- Do you only have a small deposit
- Do you have bad credit
- Are you self employed and don’t have a long enough credit history
- Are you new to the UK and have little or no credit history
- Maybe you’re a graduate
- Do you struggle to save for a deposit, whilst also renting
If you’ve answered ‘yes’ to any of the above, our Rent to Own scheme might be right for you.
It’s set up to help you, as a tenant, to get onto the property ladder.
How does Rent to Own work?
You rent your property for a pre-agreed term, anywhere up to 7 years and have the option to then purchase your home at the end of the rental term.
The whole ethos behind the scheme, is to assist people who want to buy their property, but for various reasons, have not found the vehicle to do this. Until now…
Who qualifies for Rent to Own?
Rent to Own is best suited to people with poor credit ratings, self-employed people, and those with little or no funds for a deposit.
It has been developed to help you save towards your deposit, whilst also paying your existing monthly rent.
All applicants are subject to a financial health check, but don’t worry, this is to ensure Rent to Buy is right for you.
Who wouldn't qualify for Rent to Own?
Rent to Own wouldn’t work for you if you are unlikely to be able to afford future mortgage payments, if your job might be at risk in the near future, if you’re claiming housing benefit or if you are currently bankrupt.
Once your financial financial health check is complete, we’ll let you know whether you’ve qualified for the scheme.
What will Rent to Own cost you?
As a successful Tenant Buyer applicant, the next stage is to pay a non-refundable option arrangement fee of £995
You would continue to pay your rent as normal every month, along with a pre-agreed and carefully calculated ‘top up’. The top up is held in a secure escrow account and at the end of your option period it is used as your deposit to buy your property.
Will your rent go up at all?
No, your rent will not increase during the life of the option.
The agreed future purchase price and the monthly top up are also fixed for the duration of the option agreement.
When will you own the property?
After the option period, you will have the option to buy the property at the pre-agreed price. You will use the total value of your top up payments as your deposit.
Your top up payments have been calculated so that at the end of the option period, your total top up fund will equate to no more than 10% of the agreed future purchase price.
At this point, we will introduce you to our approved mortgage broker who will assist you in finding a suitable mortgage to buy your home.
How long will it take to buy your home?
Option periods usually last up to 7 years, giving Tenant Buyers a realistic time period to save a large enough deposit from their top up payments. From starting the Rent to Own process, you could own your home in up to 7 years from beginning the scheme. In some cases, Tenant Buyers can choose the exercise their option early.
Are top up payments refundable?
Except in specific situations, you will lose the accumulated top up if you do not complete the process through to the completion of purchasing the house.
If you have any questions about Rent to Own and the terms, please get in touch – we’re always happy to talk, with no obligation.
We also recommend you seek independent financial advice before proceeding with a Rent to Own application.