Rent to buy

Philyg30

Hi all, just wondering if there is an option to buy a home privately through a rent to buy scheme? I'm currently not in a position to save a large deposit as I'm paying high rents .I was wondering if a landlord or home owner wanted to sell a house to
Me at an agreed rate per month and an agreed deposit would it be applicable ?

the_syco

The bank will need to agree to it first, but by the time you buy the house, the value of the house may have risen, so your deposit may not be enough to buy the house.

The scheme only ever favours the seller.

L1011

No bank ever takes the 'rent' as the deposit, so these schemes are of no use to those who can't save beyond the rent.

pasquale83

Well, this is an option of the rent to buy scheme

http://www.city-life.it/en/rent-to-buy

The Rent to buy is a purchasing method that allows to stipulate a residential lease agreement with the option to purchase the apartment.
Purchasing the apartment it will be possible to recover the 75% of the paid rents (VAT excluded). In case of no purchase it will be returned a sum equal to the 10% of the annual lease rent (VAT excluded)

Example
Price of the apartment: € 1,200,000
The annual lease rent will be equal to 48,000 euro (including VAT 10%).
At the end of the fourth year of the lease agreement it is possible to buy the apartment paying 1,069,091 euro recovering 130,909 euro (equal to the 75 % of the paid rents excluding VAT).
In case of no purchase it will be returned 4,364 euro, equal to 10% of the annual lease rent (VAT excluded).
Please note it is also possible to purchase at any time within the end of the fourth year.

Sarn

I can't see any benefit to a private seller entering into such an arrangement without a very inflated 'rent'.

pasquale83 wrote: »

Well, this is an option of the rent to buy scheme

http://www.city-life.it/en/rent-to-buy

That is an Italian website so I'm not sure how applicable it is here.

Philyg30

It's ridiculous they need to sort something out for the middle class who are upto there eyes in rent and can't afford to save for a mortgage deposit

Lux23

There should certainly be a system whereby banks can take rent into account. Our rent is relatively low, but it would still take two to three years to save the deposit by which time house prices may have increased again.

athtrasna

Lux23 wrote: »

There should certainly be a system whereby banks can take rent into account. Our rent is relatively low, but it would still take two to three years to save the deposit by which time house prices may have increased again.

They do, for mortgage affordability tests but rent to buy won't be back in the current market.

ajarms86

Philyg30 wrote: »

Hi all, just wondering if there is an option to buy a home privately through a rent to buy scheme? I'm currently not in a position to save a large deposit as I'm paying high rents .I was wondering if a landlord or home owner wanted to sell a house to
Me at an agreed rate per month and an agreed deposit would it be applicable ?

Hey Phily,

sorry if I'm opening a long dead thread but just wanted to check if you where successful in your bid for a rent to buy style purchase agreement?

I have heard of it being done successfully but that was back in 2009 so Im just looking for slightly more recent examples?

Thanks,
AJ