Thinking of buying a property - SmartShare has thousands of properties to buy or rent across the UK
Trying to get your foot on the first step of the housing ladder seems a unachievable option for thousands of people in the UK. However, with a rent to buy option the solution is now well within many people's grasp and an extremely positive and realistic way to get onto the housing market.
The principles of the scheme are straightforward; rather than just renting a property and paying rent for no return irrespective of how long you live in the home, you rent a property and then at the end of the agreed repayment terms you are given the option to buy the property.
This method of rent to buy has many advantages and although it may appear to be a dream come true, the fact is the scheme is legal and entitles you to have the chance to own a property after a specified time. So, you will no longer be merely paying rent to someone else to reap the profits you will have a vested interest in your rental agreement and your purchase agreement.
With banks withholding mortgages and those that are lending asking for a high deposit contribution, rent to buy makes both logical and economical sense. The scheme is ideal for people who qualify to buy a shared ownership property but don't have the necessary savings for the deposit.
Of course, there are qualifying criteria which you'll have to meet, but you won't have to save for a hefty deposit, because you'll be paying a reduced rental rate, typically over three years, which gives you the time to put aside the money you would normally have be paying in rent, this accumulates into your deposit. This scheme is also known as 'try before you buy' – which does exactly as the term suggest – gives you the chance to find out whether this scheme is suitable for you and your lifestyle prior to entering any full agreements.
Even if you have a poor credit rating you may still be considered depending upon the terms and conditions. Your rent will be less than mortgage repayments, which is ideal for people who aren't in the highest earning brackets and yet want to have the opportunity to own their home.
Finding affordable housing which enables you to get onto the housing ladder is a successful method available throughout the country; you don't have to live in a specific area or town as there are many housing associations and Homebuy agents participating in the rent to buy schemes.
Rent to buy has been operating for many years and with the announcement in April's budget that stamp duty has been abolished for first time buyers buying property under £250k means that you can potentially save more money. Yes, there are qualifying criteria to meet and you will have to make timely rental repayments, but as you're doing that anyway, the incentive and drive to turn your home-owner dreams into reality has never been easier or more affordable.