How it Works

Here’s an example of how our Rent To Buy initiative works:

This example assumes the property is being marketed at £180,000

• Purchaser enters into a Rent To Buy contract for a minimum of 2 years and a maximum of 3 year
• The sale price is fixed at the date of entering into this contract
• The purchaser will pay monthly rent equivalent to between 15%-25% of the sale price. All rent paid during the contract period will contribute towards the deposit to purchase the property
• The rent, in this example, would be £750 per month (15% of the market value set at £180,000)
• 3 years rent at £750 per month equals £27,000

After 3 years the purchaser exercises their right to buy

• Property cost £180,000, however, it should be noted that the market value of the property may be higher as the price was set 3 years previously
• £27,000, which is the amount of rent paid over 3 years, goes towards the cost of the property, leaving £153,000
• Obtaining a mortgage may be easier considering the equity already built up in the property
• If the purchaser decides not to exercise their right to buy then they will need to hand back the property having lost nothing; they would only have paid monthly rent

There may be circumstances where an applicant is struggling to save the solicitor fees, a deposit and one month’s advance rent.
We are committed to making this initiative truly affordable, so we’ve partnered with an established and respected financial institution who will offer interest free loans to cover these expenses, subject to credit and status checks, repayable over 24 months. Find out more >>

* We are not providing any financial or legal advice and applicants will be advised to take independent legal and other advice
** Prices may fluctuate either way, depending on the market