Common Questions on Rent To Buy

What is rent to buy?

If you are currently renting property but would like to buy a home, rent to buy may be a great opportunity for you to get on the property ladder. To enter a rent to buy arrangement, you typically find a suitable property, then live in that property as a tenant and have the option of being able to purchase the property anytime within an agreed period of time at a fixed agreed price. This means that you get the benefits of a homeowner, but do not have the worry of obtaining a mortgage to start out.

Who is the rent to buy option suitable for?

A rent to buy option may be suitable for a wide range of individuals who wish to get their foot on the property ladder without first having to secure a mortgage. First time homebuyers especially may benefit from taking this option to buy their first home, as the outlay is small to get started on the property ladder.

How much does it cost to get started?

When you enter into a rent to buy option there will typically be some starter money required. This money is deducted from the final purchase price of the property. As a typical and rough guide, you may have to find around 2% of the purchase price of the property.

How much are the monthly payments?

During your option period, you will pay an agreed amount of rent to the seller. Along with this amount, you also pay an additional small payment which goes towards reducing the final purchase price that was agreed upon.

What happens when the option (rental) period ends?

When the option period (rental) period reaches an end, typically 3 to 5 years, you have the choice of purchasing the property at the price that was agreed upon at the outset. In this case, your starter money and any additional payments made will become part or even all of the deposit for the property. Along with this, any equity that has built up in the property during your rental period is yours, if you choose to buy the property.

How long does it take to agree on a rent to buy option?

The typical rent to buy option may take around 2 to 4 weeks following the signing of the paperwork; however, we work to a date that is suited to your needs. For example, you have to take into account the amount of time that it takes you to pack or to find suitable schooling for children, among other factors.

Are there any application requirements?

Typically, you need to be in employment full time and have enough income coming in to be able to meet the monthly payments. We will also undertake a reference process, which will be outlined in the application form.

How do I apply for a rent to buy?

All you have to do is provide us with your details via our online form and someone will get back to you to discuss your circumstances and requirements.