Rent to Buy or Rent to Own as it is also known is a new way for First Time Buyers and Tenant Buyers to get on the UK housing ladder without having to be approved for a mortgage immediately or find a large deposit. This way of purchasing property has also attracted the attention of UK government with the introduction of its Government Homebuy Scheme.
The Rent to Buy and Rent to Own Homebuyer Schemes have been introduced to the UK Housing Market to enable First Time Buyers and Tenants, who are known as Tenant Buyers, the opportunity to get on to the UK Housing Ladder.
Rent to Buy and Rent to Own are new Homebuyer Schemes that have been introduced to the UK Housing market. With Rent to Buy you have the option to own 100% of the property from day one unlike the Government Homebuy Scheme where typically you only own 70%.
Rent to Buy schemes and Rent to Own schemes are becoming increasingly popular with people wishing to become homeowners in the UK, especially if they are, a New Resident to the UK, a First Time Buyer, struggling to get a mortgage, struggling to buy a home, no credit track record, poor credit history or people fed up paying dead rent money each month.
A Rent to Buy Scheme can also be referred to as a Lease with an Option to Buy, commonly known as a Lease Option. With Rent to Buy a First Time Buyer or Tenant Buyer can become a Home Owner without having to be approved for a Mortgage immediately. No large deposit is necessary hence the term Rent Now Buy Later. You can become a Tenant Buyer by entering into a Rent to Buy property or Rent to Own Property.
Rent to Buy has also attracted many sellers of property who want to Sell House Fast or Sell House Quick, when sellers say Buy My House, the answer could simply be to enter into a Rent to Buy Lease Option with a First Time Buyer this will help the vendor to Sell House Fast.
People who are renting are becoming Tenant Buyers today by using www.renttobuy.co.uk to find a Lease Option or Rent to Buy property, they are becoming Tenant Buyers and stopping paying dead rent money each month, First Time Buyers are also doing the same. A down payment, called Option Consideration will be required. This will then lock in the future sale price at the price agreed on signing of the Purchase Option Agreement. Monthly Option Consideration Payments can also be paid along with the rental money that has been agreed in the AST Agreement.
If you have bad credit then you will need some time to fix it. A Rent to Buy Lease Option Agreement gives you the future Homebuyer the opportunity to live in the Home you want to Buy while working on how to repair your credit.
During the Credit Crunch Rent to Buy is proving to be one of the best ways of helping Homebuyers get on the Property Ladder. Rent to Buy allows First Time Buyers and Tenant Buyers that are struggling to get a large Deposit the legal right to buy a property within an agreed timescale at an agreed price.
The Rent to Buy Scheme can even help existing homeowners to Rent to Sell. People that are in need of Negative Equity Help can Rent to Sell using the Rent to Buy Homebuy Scheme. Private Sellers, Buy to Let Landlords, Property Developers and For Sale By Owners are all taking advantage of Rent to Sell and Rent to Buy.
The Rent to Buy advantages are as follows.
Option Consideration money can be credited against the agreed Purchase Price if the Purchase Option is exercised. This is ideal for First Time Buyers and Tenant Buyers that are struggling to save a Deposit.
Ideal for new Residents to the UK.
Great for future Homeowners with Poor Credit History or No Proven Credit Track Record.
Other names to look out for when considering purchasing a Rent to Buy Property include the following.
Rent to Own, Rent Now Buy Later, Try Before You Buy, Own Now Pay Later, Rent Then Own, Rent2Buy, Rent2Own, Homebuy, Rent To Homebuy.