Rent to Buy
What is rent to buy?
Rent to buy is an affordable home ownership scheme which allows individuals to rent their home at an affordable rate for a set timescale, enabling them to purchase a share at the end of the rental period.
What are the benefits?
The scheme is designed to help aspiring home owners by charging rent at the 80% of market value, allowing them to use the potential savings towards purchasing a share of a new build property. This can aid those that are unable to afford to save whilst paying market value rents, whilst also providing a sustainable fixed tenancy.
Am I eligible?
Rent to buy is for those people who would like to get a foot on the property ladder but can’t afford to buy outright, in a variety of circumstances, including first time buyers and growing families.
Each scheme has its own eligibility criteria. These include but may not be restricted to:
- Local connection – To qualify for a local connection an applicant must comply with one of the following criteria:
- Has continuously been a resident in the locality for the last 3 years
- Is permanently employed or has a firm job offer for a minimum of 16 hours per week within the locality (contracts for a minimum 1 year’s continuous employment/self-employment) evidence required.
- Previously lived in the locality for at least 3 years and have completed a post-secondary (tertiary) course within the previous 3 years
- Needs to live in the locality due to their/relative’s health needs
- Previously lived within the locality for a continuous period of 20 years or for half of their life prior to leaving the locality less than 10 years ago.
- Has spent 10 years of their school education within the locality
- On the advice of a professional that a person needs to live in the locality due to domestic violence.
- Financial requirements – To qualify an applicant must:
- Not be able to afford to buy suitable accommodation at open market value
- Earn less than £80,000 annually as a household
- Prove they are not in mortgage or rent arrears
- Be in work and be able to pass an affordability assessment
- Confirm they will be planning to purchase
Owner occupiers can, in exceptional cases, have access to the scheme subject to certain conditions. Each of these applications will be assessed on a case by case basis, however applicants are ALWAYS required to have already sold their property or sell their property prior to the beginning of the tenancy.
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