Rent to Buy Home > your options
A Rent to Buy home is a great way for so many people to get onto the property ladder - when they thought it wasn't possible for them...
So if you're eager to find out how to make home ownership a reality for you - in your situation - please keep reading to discover all your options...
We all need a place to call home and there really isn't a one-size-fits-all option that's suitable for everyone.
Many people aspire to own their own home. And equally many other people don't want to be tied to the one place for any length of time.
Owning your own home certainly gives you a sense of security and control over your own destiny. And removes the threat of a landlord (legally) evicting you - with only 2 months notice.
Owning your own home certainly gives you a sense of security and control over your own destiny
However I'd say that before taking the plunge to buy a house you should have a degree of certainty and a clear path on where you're heading. Because once you own your own home it's a lot less easy to change direction quickly.
So what about YOU?
- Where is your life at right now?
- Are you still moving around and quite like it that way?
- Or are you wanting some stability and considering buying a home?
Getting a Rent to Buy home is one of the best options for getting on the property ladder. And it's the one that's least well known and understood.
So let's now explore the options that are available to you and see where a Rent to Buy home fits into the mix.
FYI - Rent to Buy Home | Rent to Buy House | Rent to Buy Scheme | Rent to Own Home | Rent to Own Scheme etc all basically mean the same thing.
And a Rent to Buy House could mean an apartment or flat or a bungalow.
Properties to Rent
Let's briefly discuss renting a home and look at the options available to you. Renting is perhaps the option that's available to most people and can be a short-term or long-term arrangement.
Advantages of renting over buying
- Well the obvious one is that houses can be really expensive so not everyone can qualify for a mortgage to buy one. However that can depend on where you live. London and Burnley (for example) have completely different house prices and affordability.
- Renting a home can be cheaper than paying a mortgage - depends on location.
- You can move on quickly from a rental - only 1 months notice needed
- Somebody else does the maintenance for you.
Disadvantages of renting over buying
- You have to keep making the rental payments for ever. Because they simply never stop.
- You can be asked to leave with only 2 months notice - completely legally.
- You have to ask to get anything fixed - even simple things.
- Often you can't decorate as you wish. Or keep a dog or cat.
So where can you get a rental property from?
Renting from your council or housing association
This is probably the most secure form of renting if you're looking for a long-term solution without the constant worry of being asked to leave at short notice.
And usually renting from your council or housing association is cheaper than private renting and there's less chance of unexpected rent increases.
There are long waiting lists in many areas and strict eligibility criteria. So you may have to wait a very long time to get one.
Renting from a private landlord
Renting from a private landlord can be a long-term solution or a short-term solution. But there's less certainty for you because your landlord calls the shots.
The minimum legal contract is 6 months on an assured shorthold tenancy, however you may be able to get a longer contract. So that means that you only have security for what is a relatively short period of time.
You'll need to provide an upfront amount of money as a deposit and also "rent in advance". So as well as agent fees, moving costs etc you'll need a lot of money before actually moving in for what is then a relatively short period of security (6 months).
Own your own home
Owning a home I would suggest brings the most security as you're largely in control of your own destiny. However it isn't something to get into lightly as you can't simply change your mind and up sticks and stop paying the mortgage.
Let's take a quick look now at the advantages and disadvantages of home ownership.
Advantages of Buying a home over a rental
- Well the obvious one is that because you own the home, you get to call the shots. As long as you keep paying the mortgage payments and other bills then largely speaking you can stay as long as you like.
- One day in the future you WILL have paid for your home and your mortgage payments WILL stop. It's a bit like getting an enormous pay rise.
- If your house has increased in value then this is your money to keep.
- Owning your own home brings a sense of pride that you share with your neighbours. Meaning there's more of an incentive to keep your home and neighbourhood looking nice.
Owning your own home brings a sense of pride that you share with your neighbours
Disadvantages of Buying a home over a rental
- You need to put down a sizable deposit to buy a home. This is because mortgage companies (who lend you the majority of the money) want you to have some of your own funds invested in the property.
- Mortgages are long-term financial commitment. So that could be seen as a disadvantage if you're someone that likes to keep moving on.
- Although we all like to think that our homes will increase in value over time - there are no guarantees that they won't actually fall.
- If you own your own house then all the maintenance costs, plagues of locusts and infestations of wood worm are all down to you to sort out and pay for.
Rent to buy home
A rent to buy house is an incredible opportunity for people to finally get a foothold on the property ladder. And as the name suggests it's a combination of renting AND buying.
Rent to Buy is firmly aimed at people who for 2 main reasons CANNOT get a mortgage today, but who CAN get a mortgage in the future - let's say in 3 - 5 years time.
The 2 main reasons people can't get a mortgage:
- They haven't yet saved all of the 10%* deposit needed. Example a house being purchased for £100,000, they'll need to find a £10,000 deposit. The bank lends them the remaining £90,000 mortgage.
- Their current financial situation makes them ineligible. However they will be eligible in a few years time. Eg somebody training for a new career - fireman or midwife (and many similar situations)
*10% is just an example - and could be different in your situation
Government Rent to Buy Schemes
There are a number of UK government schemes to help first time buyers and also those recovering from a relationship breakdown onto the property ladder.
These schemes are well publicised they act as a government endorsement to the concept of Rent to Buy / Rent to Own Scheme, Help to Buy etc as a viable way to buy a home.
Checkout this government rent to buy home information
However these schemes have limitations and are targeting new build properties only. And you'll be dealing with the house builder themselves.
There is very limited availability and very strict eligibility rules. So if there isn't a new build near you that's offering Rent to Buy then this isn't an option.
These new build Rent to Buy schemes DO NOT cover second hand properties.
The Rent to Buy properties that Karen and I are discussing with you now covers properties in the second hand market. There's literally hundreds and thousands of properties available in estate agent windows and online at Rightmove and Zoopla.
There's literally hundreds of thousands of properties available in estate agent windows and online at Rightmove and Zoopla
And these properties form the vast majority of all available properties suitable for Rent to Buy.
Rent to Buy opportunities in the second hand market are everywhere - you just need to know where to look and how to go about finding them.
rent to Buy opportunities are everywhere
Rent to Buy opportunities in the second hand housing market are available everywhere there is housing in Britain. You just need to know where to look .
Rent to Buy is a combination of renting and buying. You initially rent a place for typically 3 - 5 years that you buy later with a mortgage (or sometimes for cash).
The person who takes on the Rent to Buy property is termed a TENANT BUYER.
The person who takes on a Rent to Buy property is termed a TENANT BUYER
If you've read this far then may i suggest you take a look at the the FREE RENT TO BUY TRAINING COURSE which goes into great depth about how it all works and who Rent to Buy is aimed at.
Rent to Buy lets you rent using the "assured shorthold tenancy" document that anybody who's rented a house is already familiar with.
In addition you have a second document that is called a "lease option to purchase" agreement.
So what that all means is that whilst renting you have the option to buy the place you're renting.
And it gets even better...
You start to buy the place you're renting from day 1. So the purchase price keeps dropping each and every month until you buy.
How cool is that... And there's more...
Remember further up this page I said that you can be legally asked to leave a rental with only 2 months notice? So you can never truly put down roots and call the place home?
Well with Rent to Buy - YOU get to stay as long as you like.
a Rent to Buy home - all the plus points
- You have the option to buy the property you're renting
- You'll start to buy the property from day 1
- You get to stay as long as you like
- YOUR RENT WON'T INCREASE *
- YOUR PURCHASE PRICE IS FIXED *
- When you buy - any increase in house value is yours to keep
- You can decorate how you want
- You can make home improvements
- Want a dog or cat? You can have a pet
- Rent to Buy contracts are written up by UK solicitors
- There are thousands of properties that this works with
SO WHAT'S NOT TO LIKE?
* This means that with a Rent to Buy Home your purchase price is fixed and your rent is fixed. So you can save your deposit up quicker and buy quicker 🙂
And you'll Know all your up-front costs - so no nasty surprises such as your landlord asking you to move on - or an unexpected rent rise 🙂
Finding a Rent to buy home
Rent to Buy has been around for a number of years and there's a number of ways to obtain a rent to buy home.
Even though Rent to Buy is a mature way to buy a property, it still isn't really mainstream in the second hand property market.
Karen and I are looking to make Rent to Buy mainstream - and the aim of this website as it evolves is to make the information available to everybody 🙂
Karen and I are looking to make Rent to Buy mainstream... and make the information available to everyone
Because here's the thing:
Rent to Buy is a huge win-win for both buyers and sellers.
A win for home buyers
There are thousands of wannabee home buyers (Tenant Buyers) that Rent to Buy is perfect for. But they don't even know it exists in the second hand house market. So how can they get involved with Rent to Buy when they don't know it exists?
A win for home sellers
Equally there are thousands of house sellers and landlords who are desperate to sell, but struggling to sell for one reason or another. Rent to Buy is perfect for them too.
Put buyers and sellers together and everybody wins 🙂
Rent to Buy home - sourcing opportunities
The traditional way for a prospective Tenant Buyers to find a Rent to Buy home opportunity is to look for advertised Rent to Buy adverts. And then apply to these adverts for further details.
If the details of the deal and the property seem suitable then go for a viewing and confirm that the property does indeed fit the bill.
Remember this property will initially be rented with the option to purchase - and then purchased in a few years time. So you need to view this property in terms of a purchase - it isn't just another rental property.
You need to be thinking - is this a property I'd like to buy some day?
You need to be thinking - is this a property I'd like to buy some day?
And you should also be talking to people like mortgage brokers and financial advisers and let them advise you on the steps you need to take in order to be able to get a mortgage in a few years time.
If all's OK then the last step is to agree the Rent to Buy agreement with solicitors - one solicitor for you and a different solicitor for the seller - and then you can move in.
The vetting process is very similar to when you apply for a rental property. Employer references, previous landlord references, credit checks, bank checks etc all need to be passed.
Lastly there will be a fee to pay to the person who found the Rent to Buy opportunity that was passed on to you. This is very normal and is called a sourcing fee.
Tangerine Properties - sourced deals
The above Rent to Buy Home sourcing procedure is the actual procedure that Karen and I (Phil) have been using for a number of years.
And we now understand the procedure inside out because:
- We've sourced a number of Rent to Buy property opportunities - by approaching property owners and seeing if Rent to Buy could work for them.
- Then we've advertised these opportunities and found Tenant Buyers to move into these properties.
- Through experience we've now perfected the processes.
And we're now looking to offer this expertise to help people who are also wanting to be Tenant Buyers.
And we're now looking to offer this expertise to help people who are wanting to become Tenant Buyers
Because this means we can help many more people by passing on our knowledge to them. Rather than simply selling them a sourced property deal.
And this website will play a large part in how we impart our knowledge 🙂
Rent to buy home - new opportunity
After reading the information above are you now wanting to find your own Rent to Buy Home opportunity?
And do you think a Rent to Buy Home might work for you - and make your life better?
If you do think that Rent to Buy can work for you then may I suggest you take the FREE RENT TO BUY HOMES TRAINING COURSE which will take you through all of the key concepts.
Rent to Buy home - resources
And we're also looking at creating other Rent to Buy Home resources to help you:
- Find a property you love
- In a location you love
- And with Karen and I for backup if needed.
More on this when we have further details...
Rent to Buy is NOT difficult. There's just a number of simple steps that can each be broken down and followed - one step at a time.
rent to buy home - Conclusions
Hey great you've reached the end of this post 🙂
- I hope you're finding the information interesting?
- That it's giving you something to think about?
- And maybe adding some value to your life.
Because at the end of the day:
WE ONLY KNOW THE THINGS THAT WE KNOW!!
So if Rent to Buy properties is something you've only just learned exists - then I'm glad to have been able to introduce the concept to you here.
Karen and I are looking to build the most comprehensive Rent to Buy home website in the UK.
So please keep checking back to this website for further information.
And please do check out the FREE TRAINING COURSE 🙂