How The Rent To Buy Scheme Works
The following steps outline the process of renting a property to buy:
- You choose a suitable property you like to buy, then go, and view that property. We will inform you of all suitable opportunities in your area once you register with us.
- if you decide that this is the home you want to buy, you agree on the purchase price and the period of time that you would like to take the option over. This may typically be around 3 to 5 years. At this time, an agreement is also reached over the amount of deposit money and the monthly rental fee.
- solicitors are then able to draw up the option paperwork, which will include the assured tenancy agreement;
- you are then free to move into the property and make additions to the value of it or enhance the property as might any homeowner;
- you are able to purchase the home at the price which was agreed upon anytime during, or at the end of, the agreed rent to buy period. If there is any equity in the property at that time it is of course yours.
- when you enter into the tenant/buyer agreement there is no obligation to buy the property once your rental period has ended;
- however the seller does have an obligation to sell the property to you if you wish to buy during the option period;
- if you were just renting the property you will typically have paid out between 3 to 5 years rent for nothing, however as you are the tenant/buyer will own your own home.
What are the benefits of renting to buy
There are numerous advantages to entering into a rent to buy option as opposed to buying a property through the traditional methods:
- you do not have to obtain a mortgage to buy property;
- from the day you move in your are in position of ownership;
- the start up costs are very low;
- 100% of the property is yours;
- any equity that builds up during the option period is yours if you decide to buy once the option period ends;
- you are able to purchase a home over a time scale that works for you;
- if your circumstances change you are able to walk away.