Rent to Buy Scheme
How does Rent to Own work?
- You rent a home at the market rate for up to five years.
- Between the end of the second year and the end of the five-year agreement, you can apply to buy your home.
- When you apply to buy your home you will receive 25% of the rent you have paid back plus 50% of any increase in the property value since you moved in. That money can be used towards a deposit to buy the home.
Am I eligible for Rent to Buy?
You are eligible if:
- Your household earns £60,000 a year or less. A household can be one person, or you and a partner or you and a friend
- You are a first-time buyer, or you used to own a home but can’t afford to buy one on the open market now
- You have a good credit history
The Key Features of our Rent to Buy Scheme are:
- Let at up to 80% of the equivalent market rent for that property, with a fixed rate of inflation.
- The property would be let on an assured short-hold tenancy for a fixed term, up to five years, linked to (but not necessarily the same as) the required savings period. The period can be extended if you still want to buy but need a bit more time.
- The tenancy can be ended, subject to the terms of your tenancy agreement and initial fixed terms being spent, at any point.
- A savings plan will be put in place to help you raise a sufficient deposit to purchase on either Shared Ownership or equity loan terms within five years.
- We will discuss with you their regular reviews to check your progress in saving for a deposit.
You can purchase on Shared Ownership or equity loan terms at any point in the tenancy, *subject to still being eligible.