TenantsTips / Latest News / Rent-to-buy schemes are becoming more and more popular

Rent-to-buy schemes are becoming more and more popular

The current government housing minister, recently gave his support for these schemes that help address the problems in the housing market.

Rent-to-buy schemes are becoming more and more popular as property developer companies look at ways of selling their stock and generating cash flow. It also helps cash-strapped buyers to get on to the property ladder. In the private sector a rent-to-buy scheme will usually involve a rental contract that gives the tenant the right, but not the obligation, to buy the property at a set price at an agreed future date.

Tenants can pay an upfront deposit that is put towards any future purchase. Tenants then pay monthly rent and a top-up of monthly payments towards the property purchase price.

The current government housing minister, recently gave his support for these schemes that help address the problems in the housing market.

However, it is case of “Buyer Beware” as some experts warn that rent-to-buy options are often, shall we say, less transparent and that buyers should seek legal advice when thinking of joining such as scheme. The terms and conditions will vary from scheme to scheme so it is essential for a solicitor to examine the details of the agreement with a knowledgeable solicitor.

Check out our information on Right to Buy .. http://www.tenantstips.co.uk/Home/Tenancy-Help/Buying-your-home-instead-of-Renting



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