Rent to Own Buyers – your questions answered
What properties can I buy?
Contact us to see what we have available. We have a wide range of homes from apartments to semi-detached houses becoming available, so the sooner you register with us, the sooner we can find a property that suit your requirements. We may be able to find your ideal home for you straight away.
Do you supply homes throughout the country?
Yes, we can source most types of homes anywhere in the UK.
How does it work?
Simple, you sign a regular tenancy agreement known as an AST, and alongside that, an option agreement. The option agreement gives you the choice – not the obligation – to buy the house at an agreed time in the future, at a guaranteed fixed price from day one. Therefore you can plan your future finances with more confidence.
You can move into your new home without the need for a mortgage knowing that you have already fixed your future purchase price, even if house prices rise. Because this is not a ‘shared equity scheme’ any increase in value is completely yours and not shared with any third party. Similarly if you make improvements that affect the value of your home this will be extra equity for you, which will not increase the agreed purchase price.
How long before I can move in?
You could be moving in as soon as two or three weeks. We will need to obtain references, pre-qualify your application and then complete the necessary legal paperwork, but the process is a streamlined one and very simple.
Is it for me?
If you are in full time employment, can afford the rental being proposed, and have a reasonable financial record, there’s no reason why you cannot enjoy the benefits of a Rent2Own home.
What if my financial history is not great?
Rent2Own gives you an opportunity to build a track record of paying rent on time, and demonstrating that you can save for a deposit. It could be a great way to help put the past behind you.
Will I need a big deposit?
You will require a small deposit around 1% to 5% of the fixed purchase price (according to your affordability) – much less than if you were applying for a mortgage – to become a Rent2Own householder. Then, during the period that you rent your home, you can build up a deposit to satisfy the requirements of your eventual mortgage lender. With Rent2Own, you can plan how much you need to save, and over what time.
Are there any further costs?
There is a non-refundable Rent2Own application fee of £550.00 (plus VAT and disbursements) which covers your solicitor’s cost; this is only payable once you have decided to proceed with a Rent2Own option agreement. You will be liable for any costs incurred if you decide to withdraw from the option agreement at a later stage.
When do I get to buy?
You agree an option that best suits your circumstances. But typically, a period of approximately two to five years renting will provide you with the time to build up a deposit, so you can move from being a tenant to being a home owner.
What happens if I can’t pay my rent?
In common with other tenancy agreements, you will be liable to leave the property if you cannot keep up the payments. You will also lose your right to exercise your future option to buy the property.
What about legal advice?
As with any tenancy agreement, it is your choice whether you take your own legal advice. You will require the services of a solicitor when the time comes to complete the purchase of your home. However, we have a panel of experienced solicitors at your disposal if you do not have one of your own.
What if I don’t want to buy the property?
No problem, you do not need to exercise the option, and you can leave at the end of your tenancy agreement.
What if the value of the property has fallen?
Then it’s up to you whether you buy the property or not. In that instance it would be best to wait, because historically the housing market will recover from a recession.
What if the value of the property has increased?
You’re the winner – your option commits the seller to the previously agreed price.
How do I get started?
Fill out our online application form to get in touch with us, or email email@example.com or telephone the freephone number at the top of this page. We can then discuss your needs and your circumstances.
Landlords and Sellers – your questions answered
How does the option scheme help me as a seller?
Basically this is a more flexible way for vendors to sell their property and for buyers to purchase a new home. We would agree with you a fixed sale price and period of time for which the lease option scheme would run, at the end of this period we would then buy the property from you at the agreed price. During the option period we would have legal authority to lease the property for you.
What’s in it for me?
You get a quick agreement and a tenant who makes a long-term commitment to renting your property – which pays the mortgage. With the option to buy, you have an opportunity to sell in the future at an agreed price, and with the tenant motivated to purchase, they are also committed to look after the property as if it were already their own. Alternatively, we may be able to purchase your property from you outright; giving you a quick sale in what may be a quiet market. No more time wasted on viewings or uncertainty, we can give you a definite sale.
I am a landlord and have several properties – are you interested?
Potentially, yes. We have an increasing number of Rent2Own tenants looking for properties, so let’s talk. And we are also able to buy and sell any size portfolio to our data base of investors and other landlords.
Do you help developers and builders who are struggling to sell plots?
Yes, we can help you sell stagnant housing stock through the Rent2Own service. Housing developments that were dead have come to life with Rent2Own. We have closed transactions for clients on poorly located developments that were not selling through estate agents. We independently operate for both the buyer and the seller so the developer does not have to deal directly with customers.
Why not just find my own tenant?
You may want to, but we take care in vetting our Rent2Own tenants and they come pre-qualified with credit checks and references.
What about cashflow?
We can give you certainty of guaranteed mortgage payments, as soon as we have committed to an option agreement with you. During the option period we can take over all related expenses such as repairs, maintenance and buildings insurance.
What if the tenant decides not to buy?
We pre-select our tenants so they are motivated to become buyers. However, if their circumstances change, then they may not take up the purchase option. In which case, you have rented your property out over a longer tenancy than you would otherwise, and, with the tenant having taken greater care than others, your property will be ready to rent out to a new tenant right away. Again if the current tenant does not exercise the option to buy your property Rent2Own would either renew the option agreement with you or would probably buy it outright.
How do I get started?
Fill out our online application form to get in touch with us, or email firstname.lastname@example.org or telephone the freephone number on 08000 126 896. We can then discuss your needs and help with your circumstances.