Want to invest in a property of your own but don’t have around £20,000 to put down on a deposit? That’s understandable. Not many twenty/thirty/forty-year-olds these days have a lump of cash burning a hole in their bank account.
It appears that the only solution for a young individual or family who wanted to move away from living with their parents then would seem to be renting. And then you can forget about saving up for your deposit over the next few years. Seems unfair? We hear you! And it’s why we introduced our very popular Rent to Buy scheme.
A scheme to make both sides happy
Rent to Buy benefits both the tenant and the landlord. How? Well, the landlord (seller) could undertake to sell the house to the tenants (buyer) at some point in the future, giving them more time to save for a deposit. The tenants, on the other hand, knowing the house will be theirs at some point down the line will look after it and pay for its on-going maintenance (no doubt saving the landlord a pretty penny over the years).
Another benefit for the landlord is the knowledge that he or she won’t have any hassle from their tenants (not something every landlord is guaranteed). It also means getting their rent on time every month, since that will be part of the Rent to Buy contract.
The reason the Rent to Buy scheme is so popular with many of our landlords too, is that many don’t see themselves as a buy to let landlord. They just want to sell their property and move on (chances are they have moved on – to a partner’s property or moved abroad and are renting there). So, really, they just want a no-hassle transaction. And, if it benefits their tenants too then all the better.
Is Rent to Buy legally binding?
A lawyer will make up the Rent to Buy contract which both parties (buyer and seller) will sign so it is legally binding. There will be clauses which, if broken by the tenants, may mean the deal no longer stands. This could be, for example, falling behind with the rent or not doing the maintenance so that parts of the property fall into disrepair.
How can I sign up to Rent to Buy?
If you’re a landlord with a good property that you think might be suitable for the Rent to Buy scheme then we will not only put you in touch with a solicitor, but we’ll also pay those solicitor fees for you as part of our ongoing promotion. And you wouldn’t have to wait long to get a tenant/s for your property either since here at iLet we already have a waiting list of prospective tenants waiting to move into good accommodation.
Landlords and potential sellers can find out more by signing up for our Rent to Buy Guide. This outlines what you can expect from the scheme and how to get started. For a chat, you can always call us on 0333 577 0733 and speak to a member of the team.