At Majestic Property Solutions Ltd, Barnstaple, North Devon we will provide you with advice and the guidance you'll need to help you with finding the right property and information on the various options available with a Rent to buy property scheme.
Rent to Buy, Rent to Save, Rent to Own, Shared Ownership or Intermediate Rent, are all known as part of the government scheme designed to make it easy, transitioning from renting to buying a home by providing subsidised rent.
With a Rent to Buy in England, you would rent a newly built home at approximately 20% below the market rate for up to five years (time of contract varies for each property). At the end of the contract you will be offered the opportunity to either purchase the property or purchase part of the property under a Shared Ownership scheme. If you are unable to do either then there will also be the option of moving out.
Rent to buy or Shared ownership, as it is also known, lets you buy a percentage of your home – anywhere from 25% to 75% depending on how much you are able to afford – whilst being able to rent the rest from a housing association. This can be the best possible opportunity for buyers to be able to get on to the property ladder. With this scheme, you can choose to increase the portion of the property you own, as and when you have the finance available. The gradual increase in ownership is referred to as ‘stair casing’.
There are many advantages to these schemes. Having a subsidised rent will allow the tenant to be able to save for a deposit during the rental period, making it so much easier for them to be able to get a mortgage. It also allows time to repair or build a better credit score rating.