Rent2Buy-Homes

What is a Tenant Buyer?

The person or people who buy a home from us on an extended purchase plan. You start out as a tenant and end up a buyer – hence tenant buyer.

How does it work?

You sign a normal assured shorthold tenancy agreement and a document called an option agreement. The option agreement gives you the right to own the house at the fixed price advertised at anytime during the extended purchase period (normally 12-36 months). When you’re ready to buy and have your mortgage offer in place you simply exercise your option to purchase and let the solicitors complete on the transaction.

How long does it take?

We can normally hand you the keys with two weeks from your initial application provided you meet all the referencing requirements. Our homes are snapped up quickly so if you like one don’t delay or you could miss out!

Application requirements?

You’ll need to be in full time employment with enough income to cover the monthly payments. We also undertake a complete referencing process as detailed in the application form.

How do I build up my mortgage deposit?

You pay an initial low deposit (well below the amount required by mortgage companies) and during the extended purchase period you make additional option payments over and above the market rent which go towards building your deposit towards achieving a mortgage.

How much is the initial deposit/option fee

This can be flexible dependent upon your financial circumstances. Each rent2buy deal is structured on an individual basis to factor in the needs of the buyer. As a rough guide however expect 2%-5% of the purchase price.

Do I need a solicitor?

Although not essential we do recommend you consult a solicitor before signing the tenancy and option agreements. You will need a solicitor however to complete the purchase when you exercise your option.

Are there any other costs?

There is a non refundable application fee of £500.00. This is charged only when we have reached agreement with you on the terms of the lease option and you wish to go ahead with the purchase. If you chose to use a solicitor you will also be liable to pay their fee for the transaction. You will also need to pay two months rent in advance.

What happens if I don’t keep up the rent/option payments?

If you fall more than 2 months behind you risk losing the right to exercise the option to buy the house together with all option fees paid. It’s also likely we’d then begin legal proceedings to gain possession of the house.

How do I apply?

Register on the site and fill in the online form. We’ll than contact you immediately to discuss you circumstances.

Have more questions?

Fill in our contact form, email us or call on 0845 257 4016.