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.
For more information contact us at firstname.lastname@example.org