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What is Rent to Buy?
‘Rent to buy’ or ‘Rent to own’ is a simple agreement that allows you to rent before you buy. Well established in many English speaking countries including the USA and Australia, rent to buy offers you the chance to take that first step up on the property ladder.
Rent to Buy – other often used names
Rent-to-Buy (when talking about buying a home) is also known as Rent to Own, lease-to-own and lease with option to buy. So, if we own a property and you want to buy it but cannot arrange it today. Then, we can arrange for you to rent while saving for the deposit or arranging your mortgage.
We can also arrange to act as the “middle man” to put you in touch with people who want to move out of their property but cannot sell at the moment. These are called cooperative options which are used to set up a neat rent to buy scheme between someone who wants to sell and you as the tenant buyer.
How rent to buy works – rent to buy schemes
In a rent to buy scheme the lease option contract gives you a legal right. You have the freedom or right to buy the lease optioned property at an agreed price within a certain time period. In order to keep this legal right, you must make monthly payments to the seller and care for the property as if you already owned it.
So, for example, you agree to rent the property from us at a set amount each month. This rent will include a portion that goes towards reducing the ultimate purchase price. You also have the option to buy the property during the period of the lease – normally 5 or 7 years. However, if you choose not to buy then at the end of the period you just move on. On the other hand we have no option – we cannot sell to anyone else until you tell us you dont want to buy.
If you think you might be interested in looking at a property purchase like this – just complete the form below and we will get in touch with you.
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