What is rent to buy?
Rent to buy is a special scheme prepared to help individuals who cannot arrange the mortgage or buy a new house due to lack of a sound credit history. In this scheme, the buyer signs an agreement to buy the house where they will live on rent after a decided period of time. The agreement also specifies the monthly installments to be paid during the tenure of the buyer as a “tenant buyer.” So, the monthly rent paid as a tenant includes a portion that goes towards purchasing the house. The tenant buyers can stay in the house as owner but the right ownership is handed over after the agreed amount of time.
Who should go for rent to buy option?
People struggling to get mortgage for any reason, overseas workers who have not lived long enough in UK, new graduates, self –employed individuals, key workers, returning ex-pats, contract workers from former Commonwealth and those who do not have enough cash deposit can benefit from rent to buy arrangements.
Will I be a tenant or buyer?
Frankly speaking, you will be both a tenant and a buyer. The legal term is “tenant buyer”. However, after the specified period of agreement, you will get full ownership of the house.
Is it safe to rent and buy?
Rent to buy is a completely legal process and does not have any hidden clause. You will be paying rent a portion of which will go towards purchasing the house. If you wish to get out of the agreement and go to a new house, you will have no obligations. It is one of the safest ways to purchase a house in UK.
Will I have to pay an upfront amount?
No upfront money is required to sign the agreement with the seller or the landlord. You may, if you wish, pay security money so as to decrease the monthly rent. All deposits would go towards purchasing the house, if you pay upfront money.
Is there any hidden clause in the agreement?
There are no hidden clauses in the agreement. You pay the pre-decided amount of rent monthly and you gradually become the owner. It is as simple as that.
What Do I do if I have additional questions?
Please fill up the contact form and we will get back to you asap.
