Rent to Own
Rent to Own is a revolutionary new service that allows tenant-buyers to move into their dream home now, but purchase the property at a pre agreed price within a pre agreed time frame in the future.
It is aimed at those people who cannot get on the housing ladder for various reasons including:
- Poor credit
- Not enough deposit saved up
- Less than 3 years self-employed accounts
It’s actually not a new concept. Rent to Own (commonly known as a purchase option) has been used in commercial and industrial transactions for hundreds of years, it’s basically buying a house over an extended period of time, a bit like try before you buy. We have put a modern spin on things to help people purchase their dream home in the economic climate.
A tenant will pay rent as normal but also pay a smaller additional amount, which is kept in a secure client account that over the agreed time frame forms the deposit, which would allow the tenant to purchase the property.
The scheme is not just aimed at tenant-buyers but also at landlords who cannot sell their property, possibly due to a high existing mortgage, so the conventional way of selling a property may not be appropriate. Rent to Own is a great mid to long term exit strategy suitable for accidental landlords or for landlords who wish to have a structured disposal strategy and take advantage of annual CGT exemption.
It’s a win-win for everyone, the tenant-buyer gets their dream home, and the landlord sells their property. What’s not to like?