Rent to Buy
What is Rent to Buy
Rent to Buy offers the opportunity to rent a newly built home on an Intermediate Rent basis; allowing you to rent a home at a rent which is charged at approximately 20% lower than you would expect to pay for a similar home on the open market. You can do this for up to five years with the option to buy the home through Shared Ownership when you are ready to buy in the longer term.
If you rent a home through Rent to Buy, you can make an offer to buy the home on Shared Ownership terms when you can afford to; this can be done at anytime during the tenancy provided. When you decide to buy, your housing provider will make an assessment of what share of the property can be bought, based on an independent financial assessment of what you can afford. Terms and incentives vary by development.
How does Rent to Buy Work?
This option offers new build homes to rent for a pre-defined period of time with the expectation that you will buy a share of the property at the end of the rental period. Homes are available through a range of housing associations on assured shorthold tenancies with an affordable rent of 80% (or less) of market rents. The rent is payable for a pre-defined and limited period, after which time there is an expectation that you will purchase the property on the terms of shared ownership new homes. The rental period provides you with the opportunity to save for a deposit towards buying a share in the home, enabling you to access mortgage availability.
Some housing associations offer variations of Rent to Buy. Some of these schemes are marketed with different names, for example "Try Before You Buy" or "Rent Save Buy", etc. Please enquire with the relevant housing association to clarify the terms under which the scheme you are interested in is being offered.
What are my options after renting through Rent to Buy?
You will have the opportunity to purchase a share in the property throughout your tenancy. At the end of the rental period, you will be assessed to determine your affordability and eligibility to purchase a share in the property. If your circumstances have changed and you are no longer able to afford to buy, your landlord may review your tenancy. Please note that there is no guarantee that your tenancy will be renewed after each of the agreed periods.
The Rent to Buy scheme is an exciting new way to "try before you buy." This superb scheme allows you to sample life in your new home while you save up for a deposit. Rent a fabulous property at an affordable discounted rate (usually up to 20% lower than average local market rents) for between three and five years. In the future as your circumstances change you can purchase shares of your home or even buy it outright.
There are a number of key criteria you need to meet for Rent to Buy but the main ones include: You would normally be eligible for Shared Ownership You must be over the age of 18 years old You must be in full time permanent employment You must have a household income of under £60,000 per annum
How do I find a property?
Perform a Property Search to locate suitable properties available.
How do I apply?
Fill in our online application form to apply for Rent To Buy and select a development. We may then require photocopies of three months wage slips. Please note that we do not accept originals as we cannot guarantee their return.
How do I reserve a Rent to Buy property?
We require a non-refundable application fee of just £50 for an individual application and £75 for a joint application. This fee will cover your credit check and referencing.
How much is the rental deposit?
A deposit of six weeks rent will be required to secure a property.
Do I pay maintenance/service charge on top of my rent?
No, these are included in the rent
What price will I pay if I want to buy under the shared ownership scheme?
Either the selling price that was set on first release of the property for sale, or the open market valuation at the time you apply to purchase – whichever is higher. Re-lets - fill out an application form to register an interest in properties to be at the top of the list should someone end their tenancy.