2 bedroom flat for sale

Tenure: Freehold

FED UP RENTING - WANT TO START OWNING

Tenants

Would you like to become a homeowner of a new property or even the property you are currently in? Rent to Buy is a new way that allows people an option to gain 100% ownership without them having to raise a mortgage or an initial deposit. There are many reasons why people struggle to become homeowners.

Bad Credit history
no deposit
new uk resident
age/first time buyer
self employed

A tenant buyer is a future purchaser who has a legal option to purchase a property at an agreed price at an agreed date(usually 3-5 years)

The advantages are:

you own 100% of the property from day one
You keep 100% of the equity increases
Flexibility - You walk away whenever you like.
No initial mortgage required - build your credit history Chance to Save, kids to settle into school etc. You are free to upgrade property as and when you see fit.

How it works


Select one of our properties currently for rent.
Confirm property is eligible for "Rent to Buy" you decide you would like to enter into an Option to Purchase Agreement . You agree with the seller the price and the period you would like to take the option over and confirm the amount of "Getting Starter Money", monthly rental fee and any additional monthly "Option Consideration Payments".
The relevant option paperwork is drawn up by Solicitors along with an Assured Tenancy Agreement for the duration of the option.
You move in and are free to enhance and add value to property during the period as any traditional homeowner would.
At the end of this period you purchase the property at the previously agreed price and any equity the property has gained is all yours. As a Tenant Buyer you are not obligated to purchase the home at the end of your option/rental period.
The Seller is required to sell the Property to the Tenant Buyer should the Tenant Buyer choose to exercise the right to buy during the option period. So in the same period a traditional tenant would have paid 3 – 5 years of dead rent money, you as a Tenant Buyer will own you own home... easy

You have the option to purchase the property.
If you choose to exercise your option to purchase the property at the price you agreed at the beginning, your “Option Consideration Payments” and “Getting Started Money” will form part or all of your deposit, you will also retain any additional equity the property has accumulated during the option period, should you choose to purchase.


Landlords

We believe that the Rent to Buy option offers a win win situation for both buyers(tenants) and sellers(landlords).

For landlords the advantages are.

Tenant more likely to pay rent.
Property more likely to be well maintained increaced rent and fees (this is repayable if they take up the option) sale - no estate agents insurances etc paid by buyer more stable tenancy.



Example of a Lease Option


Mr and Mrs Smith have been a tenant of 247 for 6 months. Mr Smith through no fault of his own was made redundant a number of years ago and therefore has a bad credit history. They like the property they are in and there kids are settled in the local school. They approach 247 Property Letting for an appointment to discuss.

Today's market valuation of the property in 2010 is £100,000

They will pay £107,000 for the property in 2014

If the property is worth more in 5 years time, say £125,000 they will keep the extra growth/equity.

They pay £2,995 upfront “Starter Money” (Rent to Buy Deposit) which will come off the purchase price at the end of the 5 year term.

The market rent for the property is £525, they will pay per month for the duration of the 5 year term with NO INCREASES.

They can afford to pay an extra £100 “Top Up” per month on top of the monthly rent payment, again, these “Top Ups” will come off the purchase price at the end of the 5 year term.

The seller will match this “Top Up” pound for pound over the 5 years.

They live in the house for 5 years, treating it like their own home and then the day comes to complete the purchase, this is what happens.

The purchase price is £107,000

Mr and Mrs Smith need a mortgage for 90% of the purchase price which is £96,300

They will need a deposit of 10% which is £10,700

They have the original £2,995 “Starter Money” they put in at the beginning towards the deposit.

They have paid a monthly “Top Up” of £69 per month over the 5 years which equates to £4,140 towards the deposit.

They have the “Top Up” pound for pound match money, which equates to £4,140

In total £11,275 towards a deposit of £10,700 meaning we give the purchaser back £575 in their hand, plus if the property is worth more than the £107,000 purchase price, they keep that too…

So for £2,995 upfront and less than current market rent per month, Mr & Mrs Smith own their own home.

Still want to pay dead rent money?