Rent to Own is an innovative strategy allowing tenants to get onto the property ladder. Rent to Own allows tenants to rent their desired property for a fixed period of time (commonly 5 years), at a fixed monthly rent, with the option to purchase the property at a pre-agreed price at the end of the option period.
If you answered yes to any of the above questions,Rent to Own might be suitable for you.
Download Tenant BrochureRent to Own 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 Own 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 Own. After all, that’s why Rent to Own was developed, to help people get onto the property ladder.
Rent to Own 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 independentthird-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 Own, please get in touch to discuss your circumstances with a member of our team.
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 pre-calculated ‘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.
No. Your rent will never increase during the life of the option.
The agreed future purchaseprice and the monthly top up are also fixed for the duration of the option agreement.
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 pre- calculated 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 helpyou find a suitable mortgage.
Option periods commonly last 5 years. This gives Tenant Buyers a realistic time period to accumulate a large enough deposit through the top up payments.
From starting the Rent to Own process, you could own your home in a minimum of 5 years. In some circumstances, Tenant Buyers may choose to exercise the option early.
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 the landlord pulls out of the transaction, you will always receive the top up payments back.
If you are unsure of any of the Rent to Own terms, we are happy to answer any questions you may have. If you are still unsure whether Rent to Own is for you, we recommend that you seek independent financial and/or legal advice before proceeding with your application.
Examples of existing Rent to Own properties
If you would like more information on Rent to Own, please complete the form below and a member of the team will be in touch. Alternatively, you can contact us by telephone on 0191 527 4007.
Rent to Own has helped me become a home owner. That is position I never thought I would be in 5 years ago.
Anonymous - Proud home owner