How Does it Work
ITS ALL QUITE SIMPLE
- After viewing the property the tenant-buyer pays a commitment fee to secure the property and can normally move in within a week. We agree the figures and draw up all the legal paperwork.
- The tenant-buyer then pays rent as a normal tenant would but in addition will pay a “top up”. The top up is paid into a secure client account with full client protection and fidelity insurance so there’s no need to worry about the deposit.
- The monthly top up builds up an amount which goes towards the mortgage deposit when the tenant-buyer comes to purchase the property at some point in the future. They can buy the property in a week, one year or at any other point within the agreed time period.
- The purchase price is fixed before the tenant-buyer moves in. This does not alter within the agreed time period under any circumstances. We always get a RICS valuation so we know the current market value and agree a fair increase in the purchase price, normally 4% each year of the option. This is based on historical house price data over the last 25-30 years so we know it’s a reasonable amount.
- The time period is always between 5-10 years and both the Landlord and tenant-buyer agree the time period before the tenant-buyer moves in.
- After the agreed time frame, the tenant-buyer should have enough top up saved in our client account to purchase the property. They will normally have between 10-20% deposit of the agreed purchase price saved up.