Q. Will I be a tenant or a buyer?
A. Both. You will have a standard Assured Shorthold Tenancy Agreement the same as if were only renting, but you will also have the buyer’s agreement registered against the property.

Q. How much will it cost?
A. Each Rent2Own deal is tailored to suit your circumstances. Typically it will involve you paying a deposit of around 3-5%  of the purchase price for the right to buy at a fixed price later. You will be paying on-going rent until you are ready to buy. Your initial deposit will be deducted from the agreed purchase price we pay legal and Land Registry fees.

Q. Is there any way I can lose out with a Rent2Buy?
A. There is, but only if you don’t stick to the terms of the standard AST agreement. For example – if you stopped paying rent, or you damage the property deliberately, or the local council took out an order for noise abatement – you could be asked to leave and lose your deposit!!   But we like to think that you won’t be that kind of bad tenant because you have your own money invested in your own home.

Q. You say I can make money from day one – how does this work?
A. You can instantly add value to your future equity by doing things such as fitting new carpets, decorating, sorting the garden, painting the outside or whatever would add value to the property at minimal cost.

For example; a kitchen from Ikea may cost £1200, you could fit it yourself and add anything up to £5000 to the value of the property! This means that ANYTHING YOU DO TODAY THAT ADDS VALUE GIVES YOU A PROFIT WHEN YOU COME TO BUY YOUR HOME. Because the price agreed is the price today. You could also add value by getting planning permission for an extension (you don’t even have to build it!) and once you buy your home, you are free to sell it on –with planning permission-for a profit!

Q. How do I know I will get a mortgage?
A. Many people are turned down for a mortgage without knowing why. In many cases it can be something very simple. Mortgages are currently harder to get than any time during the past 30 years.

However, property goes in cycles and if you are prepared and ready to apply, with a good credit score, and also have a property you know you can buy at a fixed price (one towards which you have already paid) you will be in the best possible position to take advantage of the market when banks and mortgage criteria return to normal standards.

We work closely with FSA regulated mortgage brokers who will help you to find the best possible mortgage when you are ready to buy.