Rent to own is a new service designed to help sellers get the price they want/need for their property as well as giving tenants the chance to become home owners.
The 2007/2008 recession hit so many people in different ways. Some of you may have purchased a property around that time and are probably now in negative equity and feel trapped. Others were looking to get onto the property ladder but were soon hit with the reality that they just couldn't afford to.
Rent to own provides the sellers with an exit strategy whilst also allowing tenant/buyers the chance to finally own their own home. It is a win win scenario for everyone.
In a nutshell, the seller and tenant/buyer agree a property purchase price at the outset of the tenancy (We will mediate to ensure everyone is in agreement but is usually a 3% per annum increase on the current market value of the property) and agree to a term, which is a minimum of 5 years and a maximum of 10 years. The tenant/buyer will then rent the property, paying the rent each month as well as a 'top up', which is saved in our secure client account and is left to accumulate for when you are ready to purchase the property (this 'top up' is used as your deposit for your mortgage). At the end of the agreed term the tenant has the money for their deposit and is able and ready to purchase the property that they have grown to love and called home.
Landlords/seller- This is the easiest and most profitable way to sell a house to an existing tenant. You don't have the hassle of void periods where you have no income coming in, you no longer have the maintenance costs as these responsibilities are handed over to the tenant/buyer, you have guaranteed income until the day that the house is sold to your tenant/buyer. If you don't have a tenant but your property just isn't selling, this is also a fantastic opportunity to get a guaranteed income each month with the assurance that the house will sell.
Tenant/buyer - You may have been refused a mortgage for several reasons; you don't have enough deposit, you have poor credit rating, CCJ's, Defaults or you've been self employed for less than 3 years. If this is the case, Rent to Own is the perfect solution. You will rent your dream house, whilst saving up for the deposit (through us) and have the peace of mind that in 5-10 years time, that house will be yours!
If you think Rent to Own is the solution you've been looking for, please get in touch to discuss things in more detail.