TENANT FAQS
WHO CAN USE RENT TO BUY?
Rent to Buy is available to everyone, but is best suited to people with poor credit ratings, self-employed people, and those with little or no deposit saved up. The Rent to Buy strategy is developed to help you save towards your deposit, whilst making monthly rental payments. All Tenant Buyers are subject to a financial health check when they apply, however don’t let this worry you, even those with CCJs may still be suitable for Rent to Buy. After all, that’s why Rent to Own was developed, to help people get onto the property ladder.
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WHO IS RENT TO BUY NOT SUITABLE FOR?
Rent to Buy is not suitable for those who have no real prospect of affording future mortgage payments, those whose employment status may be at risk in the near future, those in receipt of housing benefit, or anyone who is currently bankrupt. After the financial health check, carried out by an independent third-party agent, we can let you know whether you meet the criteria for your desired properties. If you have any questions, or if you are unsure whether you can afford Rent to Buy, please get in touch to discuss your circumstances with a member of our team.
WHAT WILL IT COST ME?
Once approved, Tenant Buyers pay a non-refundable option arrangement fee of £1,500. Tenant Buyers then pay their rent as normal every month, along with a precalculated ‘top up’. The top up is held in a secure account and at the end of the option period the top up is used as the Tenant Buyer’s deposit.
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WILL THE RENT, TOP UP, OR THE FUTURE PURCHASE PRICE EVER CHANGE?
No. Your rent will never 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.
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WILL I OWN THE HOUSE WITH RENT TO BUY?
After the option period, you will have the option to purchase the property at a pre-agreed price, using the total top up payments as your deposit. The top up payments are precalculated so that at the end of the Option Period, your total top up will equate to no more than 10% of the agreed future purchase price. At this point, we will introduce you to our approved mortgage brokers who will help you find a suitable mortgage.
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HOW LONG WILL IT TAKE TO BUY THE HOUSE?
Option periods commonly last 5 years. This gives Tenant Buyers a realistic time period to accumulate a large enough deposit through the payments. From starting the Rent to Own process, you could own your home in a minimum of 7 to 10 years. In some circumstances, Tenant Buyers may choose the exercise the option early.
CAN I GET MY MONEY BACK?
Unless very limited criteria are met, you will lose the accumulated top up if you do not follow through with the option to purchase the house. If you are unsure of any of the Rent to Buy terms, we are happy to answer any questions you may have. If you are still unsure whether Rent to Buy is for you, we recommend that you seek independent financial advice before proceeding with your application.