Rent to Buy

How Rent to Buy works

What is a Tenant Buyer?
A Tenant Buyer is a future purchaser that has the option to purchase a property at an agreed price at an agreed future date, usually 3 – 5 years, during this time they will have many of the benefits of a traditional homeowner without having to obtain a mortgage to get started.

The Seller will allow the Tenant Buyer to live in the home as a Tenant before they actually purchase the home from them

Fed up Renting and want to start Owning?

How it Works
You find a Rent to Buy property you like on our Property Section and arrange a suitable time to go and view the property.
You like the property and you decide you would like to enter into an Option to Purchase Agreement or Lease option as it is more commonly known. You agree with the seller what period you would like to take the option over and confirm the amount of small starter money, monthly rental fee and any additional monthly option consideration payments.
The relevant option paperwork is drawn up by Solicitors along with an Assured Tenancy Agreement for the duration of the option.
You move in and are free to enhance and add value to property during the period as any traditional homeowner would.
At the end of this period you purchase the property at the previously agreed price and any equity the property has gained is all yours
As a Tenant Buyer you are not obligated to purchase the home at the end of your option/rental period.
The Seller is required to sell the Property to the Tenant Buyer should the Tenant Buyer choose to exercise the right to buy during the option period
So in the same period a traditional tenant would have paid 3 – 5 years of dead rent money, you as a Tenant Buyer will own you own home… easy

How Long Does It Take?
You can get into your “Own Home” very quickly, once the relevant paperwork has been signed then we can work around a date that suits you, normally we work to a timescale of around 4 weeks, this gives you the time to pack and sort out things like new schools etc.

How Much to Get Started?
You will need what we at Rent to Buy call some “Getting Started Money” this is an amount of money that will come off the final purchase price, class it as an investment in your future, although each property is different a rule of thumb would be 2% – 5% of the original purchase price.

How Much Monthly?
An agreed monthly fee is paid by the Tenant Buyer to the Seller during the option period, as well as these payments you can make additional option consideration payments that will reduce the final purchase price or form part of your deposit when you choose to exercise your Rent to Buy Option in future years.

What Happens at the End?
At the end of the option period you have a choice.
You have the option to purchase the property.
If you choose to exercise your option to purchase the property at the price you agreed at the beginning, your “Option Consideration Payments” and “Getting Started Money” will form part or all of your deposit, you will also retain any additional equity the property has accumulated during the option period, should you choose to purchase.

Benefits of a Tenant Buyer
No mortgage required to get started
You are in a position of Ownership on Day one
Very low entry money to “Get Started” and become a Homeowner
You own 100% of the property
If the property value increases, you keep the difference
It’s Legal
Buy over a time period that suits you
You can walk away at any time if things change for you