Your First Step On The Property Ladder

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Getting onto the property ladder as a first time buyer is often just a dream. With house prices rising faster than salaries, the first step sometimes feels out of reach.

Our Rent to Own (Rent to Buy) scheme helps tenants take their first step onto the property ladder. As a new or existing Tenant, an additional Rent To Own contract is agreed, separate to an Assured Shorthold Tenancy (AST) agreement. The Rent To Own contract is typically 4-7 years, depending on your personal circumstances.

What's In It For Me?

• Keys to your home, day 1 - you can refurbish and redecorate to your style*
• Equity in your home - we lock-in the end purchase price on day 1. Rising house prices means that Rent To Owners complete the agreement with 10% to 30% equity in their home.
• Manageable payments - our Payment Plans are more accessible than a standard mortgage.

What Is The Process?

1. You send us either an example or the details of the exact property you would like to own.
2. One of our Property Experts will contact you in confidence to discuss your circumstances.
3. We evaluate your application, and then discuss a Payment Plan with you.
4. Our solicitors work with yours to draft an agreement (we have a recommendation list for you to choose from if needed).
5. You sign the Rent To Own contract, and AST agreement, and you get the keys to your home, day 1.

How Does The Payment Plan Work?

1. A initial payment (based on your circumstances)
2. A monthly payment (usually over 4-7 years)
3. A final payment (usually paid by a mortgage company)

FAQ

• What if I change my mind? If all due payments have cleared, simply hand back the keys after 1 month's notice, as per the underlying AST. 
• What if my credit rating is poor? Our Credit Checks for the Rent To Own Scheme are not as stringent as a typical Mortgage Provider, however, in certain circumstances we can accept parental or other form of guarantees. 
• I qualify for the UK Government's Help-to-buy ISA, can I use this? Yes! Provided you tell us before the Rent to Own agreement as there is a maximum purchase price in order to use the scheme.

Case Study 

• Requested House on sale today for £300,000
• Rent to Own Term agreed: 5 years 
• Purchase Price agreed in 5 years: £400,000
• Initial payment: £10,000
• 60x Monthly payments: £500
• Final payment: £360,000 (mortgage at 90% LTV of £400,000)
• Estimated Market Value in 5 years: £420,000
• Rent To Owner equity: £420,000-£360,000 = £80,000 (19% equity)

*depending on the agreement, written permission may be required, and is always reasonably given.