Rent to Buy Your Home

The concept of rent to buy for private tenants follows in the wake of the new government Rent to HomeBuy scheme......and for tenants the big advantage is that if you do proceed to a sale you will have the rent you paid returned and you can then add this to your deposit.

Rent to Buy has taken off with developers seeing it as a way of bringing in an income to pay their finance costs while, hopefully, working towards a sale. Its also used by some private home owners and some estate agents are offering this type of deal these days

You will probably be looking at purchasing 100 per cent of the property with a private scheme, although this can vary, some offer 50% or as little as 25%. And, as long as you earn enough to cover the mortgage, the various rent to buy schemes will be open to anyone.

You must remember that until you have actually purchased the property, usually through a tenant mortgage then you are still a tenant, and as such there will be the usual tenant restrictions on what you can and cannot do or how you use the property. So, you will still need to read the small print to make sure that your pet dog would be allowed to come too.

Finally you will need to ensure that the price you agree to buy the property at is written into the rent to buy agreement as you cant be sure that a mortgage lender will value the property at the same price in 12 months or 2 years time!

Although all private rent to buy schemes are based on the same principle of you being able to buy your rented property after paying rent for a given period the schemes may differ in the details so it’s really important that you understand what you’re letting yourself in for. Like most things we would advise seeking legal advice from a solictor, maybe onewho specialises in these details, before you sign any agreement !

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