Many people dream of owning a property but find their financial situation getting in the way. If you’ve found it difficult to climb on the property ladder, the Rent to Buy scheme might be your answer.
How does the Rent to Buy scheme work?
Rent To Buy allows tenants to rent a property at a reduced rate – usually around 80% of the average rental price of the area they are living in – for a set time.
During this time, you will have the opportunity to buy or partially buy the property under a shared ownership scheme.
If you haven’t done so once the set time period comes to an end, you will either have to buy the property, or part of the property, or move out.
The idea behind Rent to Buy is that by offering homes at lower rent than usual, tenants will be able to save up enough money to afford a deposit on the property.
The lease period usually lasts anywhere from six months to around five years, depending on the property – and the occupier is free to make an offer either to buy it outright or via shared ownership at any time.
Who is eligible?
Those who can afford to buy but can’t get the deposit together because they are renting are perfect candidates for Buy to Rent. If you can’t afford the mortgage once you buy the property Rent to Buy isn’t for you.
Those 18 years and older who are also first time buyers are eligible for Rent to Buy.
Those who intend to live in the property as their main home is perfect for Rent to Buy.
How to apply
The official HM Government Help to Buy scheme can tell you about any available properties and whether you are eligible. Contact your local agent.
They will assess your application and add you to their database if you are eligible, and contact you when a suitable property comes up – although you can also browse available properties on your local agent’s website.
