Results 1 to 8 of 8

Thread: "Rent to Buy" schemes... anyone any experience?

  
  1. #1
    Status
    Offline
    PeteG's Avatar
    AOC Premium Member
    Join Date
    Oct 2006
    Drives
    2.2 Astra G 3dr Hatch
    Location
    East Anglia
    Posts
    10,619
    Mentioned in
    4 Post(s)
    Quoted
    6 Post(s)
    Follow PeteG On Twitter

    "Rent to Buy" schemes... anyone any experience?

    I've been looking at Rent to Buy schemes as we're thinking of moving, but the size of deposit the lenders are all wanting for the houses we're after is a tad on the steep side (10-15%!) ATM.

    I've been looking at a couple of Rent-to-Buy schemes, whereby you agree a value of the property, and a set rental amount. You put down typically 3-5% of the agreed value as a refundable deposit, and then pay the monthly rent as you would for a standard tenancy agreement. At the end of the 1st year, you can then stay for up to another 4 years on the same rent, with the option of purchasing the house at any time for the agreed price. One of the schemes also has the added bonus that any rent paid in the first year's tenancy is added onto the deposit you pay at the start, thus topping it up to a higher amount.

    The scheme's are designed to help New Build developers to shift some of the houses that are going unsold, as well as getting first time buyers onto the ladder.

    Anyone got any experience of it?
    NOW - Sapphire Black 3dr Astra G

    THEN - Glacier White 2.0Di Estate - 136bhp 1.6 Pineapple Yellow Mk3 - Flame Red 2.0Di Van - Chianti Red 1.8 Coupe - Star Silver 2.2 Zafira - Flame Red 2.2 Linea Rossa Coupe - Titan Gold 1.8 Coupe

    9 Years, 7 Astras, 1 Zafira, No Regrets.

  2. #2
    Status
    Offline
    danny's sxi's Avatar
    AOC Obsessed
    Join Date
    Sep 2008
    Posts
    2,473
    Mentioned in
    0 Post(s)
    Quoted
    0 Post(s)
    what happens after 4 years? the house will be worth more so do you then buy the house at the new value or what you agreed on at the begining?

  3. #3
    Status
    Offline
    [ELMO]'s Avatar
    Moderator Friend
    Join Date
    May 2008
    Location
    Didcot, Oxfordshire
    Posts
    7,316
    Mentioned in
    7 Post(s)
    Quoted
    1 Post(s)
    it will be what you aggreed at the start of the contract if i remember correctly, looked into doing this myself but still havent got round to it
    MK5 1.7 CDTI OWNER AND AN ESTABLISHED MEMBER OF THE DARK SIDE!

  4. #4
    Status
    Offline
    untouchable's Avatar
    Yer...I'm nuts!!
    Join Date
    Apr 2005
    Location
    Hampshire
    Posts
    9,405
    Mentioned in
    1 Post(s)
    Quoted
    2 Post(s)
    Follow untouchable On Twitter
    I know somone who did this, they were lucky enough (well not really because the husband had a heart attack and got £75k insurance money) to buy the rest of the property out, so they just had a smallish mortgage.

    Very good way to get on the property ladder IMO.

    Who would be responsible for any repairs though, like the boiler?


  5. #5
    Status
    Offline
    Paul_1985's Avatar
    AOC Fanatic
    Join Date
    Aug 2009
    Posts
    310
    Mentioned in
    0 Post(s)
    Quoted
    0 Post(s)
    We have just bought a 2 bedroom flat in buckinghamshire with this.

    Just to give you an idea of figures:

    Rent 198.00
    Service 23.00
    Mortgage 280.00

    We bought 40% of our flat which was worth £58,000. We were lucky enough to have £16,000 to put down as a deposit but we actually only need £10,000 for a minimum deposit before the banks would give us a mortgage.

    We can buy a bigger percentage if we like, the more we own the less the rent is.

    We found it the only way to buy a flat around here.

    Ask if you wanna know more.

    Paul
    Everything I do has total support of my wife ...... which is nice!

  6. #6
    Status
    Offline
    Phillips900's Avatar
    AOC Newbie
    Join Date
    Jan 2010
    Posts
    23
    Mentioned in
    0 Post(s)
    Quoted
    0 Post(s)
    Im on a different kind of scheme mate. Me and the Girlfriend went for a part rent-part buy. We paid £6,250 as a deposit which gave us our 10% so we could get a mortgage. We currently own 50% of our place and we can buy more when we've been here for a year. We only pay around £400 on mortgage and about £150 in rent. Only thing is if somthing goes wrong in the house we need to pay for it. No claiming it back from the Landlord.

  7. #7
    Status
    Offline
    domino's Avatar
    User
    Join Date
    Aug 2006
    Posts
    6,269
    Mentioned in
    0 Post(s)
    Quoted
    0 Post(s)
    10-15% deposit is good - the average is 20% at LEAST.

  8. #8
    Status
    Offline
    PeteG's Avatar
    AOC Premium Member
    Join Date
    Oct 2006
    Drives
    2.2 Astra G 3dr Hatch
    Location
    East Anglia
    Posts
    10,619
    Mentioned in
    4 Post(s)
    Quoted
    6 Post(s)
    Follow PeteG On Twitter
    Quote Originally Posted by danny's sxi View Post
    what happens after 4 years? the house will be worth more so do you then buy the house at the new value or what you agreed on at the begining?
    Quote Originally Posted by elmogimp View Post
    it will be what you aggreed at the start of the contract if i remember correctly, looked into doing this myself but still havent got round to it
    correct. The 4 year period gives you time to get a mortgage together to buy the house at the asking price agreed at the beginning, regardless of what it is now worth. In addition, if you choose not to go through with it after the four years (or at any time during it) then as long as you completed the first 12 months you get your deposit back in full (not any additional top up though) so it basically becomes a standard rental scheme.

    Quote Originally Posted by GTE_LET View Post
    I know somone who did this, they were lucky enough (well not really because the husband had a heart attack and got £75k insurance money) to buy the rest of the property out, so they just had a smallish mortgage.

    Very good way to get on the property ladder IMO.

    Who would be responsible for any repairs though, like the boiler?
    Quote Originally Posted by Paul_1985 View Post
    We have just bought a 2 bedroom flat in buckinghamshire with this.

    Just to give you an idea of figures:

    Rent 198.00
    Service 23.00
    Mortgage 280.00

    We bought 40% of our flat which was worth £58,000. We were lucky enough to have £16,000 to put down as a deposit but we actually only need £10,000 for a minimum deposit before the banks would give us a mortgage.

    We can buy a bigger percentage if we like, the more we own the less the rent is.

    We found it the only way to buy a flat around here.

    Ask if you wanna know more.

    Paul
    Quote Originally Posted by Phillips900 View Post
    Im on a different kind of scheme mate. Me and the Girlfriend went for a part rent-part buy. We paid £6,250 as a deposit which gave us our 10% so we could get a mortgage. We currently own 50% of our place and we can buy more when we've been here for a year. We only pay around £400 on mortgage and about £150 in rent. Only thing is if somthing goes wrong in the house we need to pay for it. No claiming it back from the Landlord.
    It doesn't sound as if any of you three are on the type of scheme I'm referring to, it sounds like you're on the part/shared ownership schemes wherein you buy a percentage of the property. The scheme I'm referring to is whereby you agree a price, pay a smaller percentage deposit, then after a minimum 12 months worth of renting the place you have up to 4 years to get your mortgage arranged to buy the place at the originally agreed price.

    Quote Originally Posted by domino View Post
    10-15% deposit is good - the average is 20% at LEAST.
    on the "Rent-to-Buy" and "Shared Ownership" schemes 10-15% is very high. standard deposits paid to the landlord on R-to-B schemes seem to be about £6k on a 120k property, thereby 5%, but of course you have to raise a bit more to go with it for when you take out the mortgage (during years 2-5).
    NOW - Sapphire Black 3dr Astra G

    THEN - Glacier White 2.0Di Estate - 136bhp 1.6 Pineapple Yellow Mk3 - Flame Red 2.0Di Van - Chianti Red 1.8 Coupe - Star Silver 2.2 Zafira - Flame Red 2.2 Linea Rossa Coupe - Titan Gold 1.8 Coupe

    9 Years, 7 Astras, 1 Zafira, No Regrets.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •