Rent to Buy FAQ

What is rent to buy?

We match up Buyers who we call tenant buyers with home-owners who are selling their properties in Cardiff, South Wales and the surrounding areas.

What is a tenant buyer?

A tenant buyer is a future buyer who has the option to purchase a property at an agreed price and date. The agreed date is usually 3 to 5 years, during this time they will have the same benefits has a home-owner without having to obtain a mortgage to get started.

How much to get started?

You will need what we call at rent to buy ‘Getting Started Money, this is the amount of money that comes of the final asking price. The getting started money would be 3 – 5% of the property price.

How much do I pay monthly?

An agreed monthly payment is paid by the tenant buyer to the seller during the agreed period. A part of the monthly payment goes towards the final purchase price.
E.g. if the property price is £100,000 the getting started money would be £4,000. You would pay £600 per month, £500 would go to the seller and £100 would go towards the final purchase price. So £100 over the 60 months would add up to £6000. Add the extra payment and the getting started money which would be £10,000. So after the 60 months you would owe £90,000 for the final purchase price.

What happens at the end of the agreed time?

• You have the option the buy the property.
• We help you find a mortgage for the remainder purchase price.
• The end price of the property will not change even if the price of the market value you would go up.

Benefits of a tenant buyer?

• No mortgage required to get started.
• You are in position of ownership form Day one.
• Only 3 – 5% deposit (Rather than a typical 10 – 15% deposit).
• You own 100% of the property.
• If the property value increases, you keep the difference.
• Its’ Legal
• You can walk away if at any time if circumstances change.

Can you confirm what further checks/ information you will require to make an application?

We do ask for a credit check but it is not dependant on you getting the property it is to help us build your credit rating if needed.

I have a poor credit score can you still help me?

Absolutely! Rent to Buy is a new system. Unlike mortgage companies you don’t need to have a good credit history – the important thing is your ability to make the monthly payments.

What about maintenance?

You’ll be living in the property as a prospective owner, so it will pay you to maintain the property and make any repairs required. You will enjoy the long-term benefit of looking after your property if you sell it for a substantial profit a few years later. Usually we will take out a boiler contract for you for first six months, so you have peace of mind with heating at the property.

Can I find my own Rent to buy property?

Yes, of course you can find your own property we can the contact the seller for you.
It can become difficult if they are already using an agent to sell their property but we will always try our best to help you in any way we can.