THE KNOW HOW OF HOW TO RENT TO BUY
Do you find that you are ready to step on to the housing ladder and commit yourself to ownership of your own home? Do you need to buy a house and cannot raise the cash to afford a deposit? Wondering how you are ever going to buy your own home after renting for years then you could rent to buy.
Rent to buy schemes are put into place and are there to provide you with the answer to your question. There are a number of you out there in the current economic climates which are struggling to buy a house of their own and who opt to rent to buy which may include:
First time buyers
Bad Credit: if you are struggling to obtain cash for a cash deposit and wish to move right now then you are still eligible to enter in to a rent to buy scheme
Not a British citizen: if you are not a UK citizen and worried that you will never get on the housing market then a rent to buy scheme could be ideal
Sick of paying rent: if you are sick and tired of paying out rent for years and have nothing to show for it then you could consider renting to buy
WANT TO RENT TO BUY BUT DON’T KNOW WHERE TO START?
If you are aware of the rent to buy schemes and do not know how to get started here we can provide you with some simple know how on how to get started. Some rent to buy companies will offer you the chance to get started straight away. The initial costs are relatively low and you will not be required to obtain a mortgage until the buying period which could be anything from 3 to 5 years typically.
It is relatively easy to get started and you will begin your renting to buy as a buyer tenant who will rent the house to buy under an agreed Assured Tenancy Agreement with a mutually agreed length of 3 to 5 years after which time you will buy the house you have rented at today’s market value.
However you are under no obligation to buy the house at the end of the agreed period and may walk away from it once the tenancy agreement has ended.
Whilst you rent to buy you all have total autonomy over the house and permitted to carry out many home improvements to the house as though it was your own.
The best place to start would be an online rent to buy company which will have houses on offer for you to browse and choose almost instantly. Once you have decided on a rental budget which you can afford and browsed and found yourself a house which is affordable and meets your needs then the rent to buy process is an easy one from there on. Many of the online companies who deal with renting to buy will be able to kit you out with your own home in a 4 week period. So if everything goes accordingly you could be in the rent to buy house of your own within a month.
THE BENEFITS OF A RENT TO BUY SCHEME
The benefits of a rent to buy scheme are useful and beneficial for those who are looking to get in to their own home. Such as:
There is a low entry barrier to obtaining your own home through renting to buy
Time constraining: it can take only a month for you to get into your own rented to buy home
Cheap: renting to buy is a cheap and effective, modern alternative to buying if you are burdened by financial stress and are 100% sure that you want to live in your own home
No obligation to buy: you are not legally bound and there is no obligation that you must buy your home after the decided rental period
Profitable: at the end of the agreed period if you decide to buy the rented to buy house then you will be able to purchase it at the price it was initially when you began the agreement, and pocket the difference. For example if you agree to buy a house for £120 000 in 3 years which increases in value to £130 000 the £10 000 difference will be yours.
WHY CHOOSE TO RENT TO BUY?
As discussed in the aforementioned section the benefits of the rent to buy schemes are immense hence the growth of renting to buy is huge as it grows in popularity as an effective way of securing your own home. In addition to the monthly rental repayments you will be required to pay a paltry amount of 2-5% of the house market value initially when you take up the Assured Tenancy Agreement and move in. This will be recovered at the point of sale should you buy and will be deducted from the actual price. Optional to this will be the option to save a bit every month in addition to your rent which will be accumulated and also deducted from the buying price at the end of the rental period.
Many home owners with mortgages have been stung by the recent mortgage PPI claims scandal, which saw lenders taking cash unfairly through expensive premiums. A rent to buy property negates the need for an initial mortgage, allowing you to avoid any potential loan mis-selling or inappropriate mortgage agreements.
Choosing to rent to buy can ensure that you are in your own home within a matter of months so it works effectively and fast. If you are 100% sure that you are going to buy the house at the end of the renting period then you can start treating the house as your own and take ownership from the moment you walk in to it. Bearing that in mind and at such a little initial cost and far less complication than buying renting to buy seems like the easiest option available if you are looking to get in to your own home soon.