What is rent to buy?
Our rent to buy scheme helps you to make that dream a reality by giving you the opportunity to move into your newly built home straight away and pay a reduced rent, giving you extra time and money to save towards your mortgage deposit.
You can move into your new home straight away, renting the property on an Assured Shorthold Tenancy for up to five years. During this time your rent will be at a reduced rate of just 80% of the full market rent value and after five years you’ll have the option to purchase outright.
WHO IS ELIGIBLE FOR A RENT TO BUY PROPERTY?
To secure a rent to buy property, you must be:
- Living in a working household, which means at least one member of your household is in full time employment
- A first-time buyer who has not previously owned a home, or you are looking to return to homeownership following a relationship breakdown. You mustn’t be a current homeowner (or named on the deeds of another property) either in this country or abroad. Assessed as having a good credit history without any outstanding credit issues such as unsatisfied defaults or County Court Judgements
- A UK citizen or have the right to remain in the UK
- You will be assessed to ensure you are eligible for the scheme and that you are currently unable to afford to buy on the open market and are intending to buy your own home in the future.
WHY CHOOSE RENT TO BUY?
You are able to live in a brand new home and save towards purchasing the property
You will pay a reduced rent –
20 percent less than the
Financial advice to help you become a home owner within five years
You can feel secure knowing you will be able to buy in the near future.
ALLOCATION OF PROPERTIES
On some of our new-build housing developments, there are requirements specified at the planning stage which give priority to applicants who live and work in the local area. If this is the case you may be required to provide additional information to support your application.
There are no restrictions on the size of the property you can apply for. We will use our discretion during the application process to ensure our properties are allocated appropriately, based on the number of intended occupants, should there be multiple applications for each development.
THE TENANCY AGREEMENT
You will enter into an assured shorthold tenancy agreement, fixed for the first six months. You will be unable to serve notice to end your tenancy during this period. The tenancy agreement will need to be signed by both you and Beyond Housing before you move into your home.
You will receive a copy of the tenancy agreement during the application process to give you time to read and understand the commitment you are entering into. This will include your liability for paying your rent and upkeep of your home. It will also detail our responsibilities to you as a tenant and your responsibilities to us as landlord. This is a legally binding contract and it is important to remember that any breach of the agreement could lead to further action being taken to end the tenancy. A reservation fee will apply.
RENT AND SERVICE CHARGE PAYMENTS
The rental amount will be set at 80% of the current open market rental value. Including any service charge payments. Rent and service charges are reviewed annually on 1 April. These will be calculated in line with the details stipulated within your tenancy agreement and will be checked to ensure they do not exceed 80% of the open market value.
Rent payments will be collected on a monthly basis in advance. The first month’s rent is to be paid 1 working day prior the start of your tenancy and then monthly by direct debit in accordance with the date you moved into your home i.e. for a tenancy which commences on 14 March, the rent will be due on the 14th of each month moving forward.
A service charge is the payment collected to cover any external or internal communal costs, such as communal open space. Should a service charge be payable for your property, you will be provided with a breakdown of the costs and be required to pay this while you are our customer and also once you purchase your home on either a freehold or shared ownership basis.
FREQUENTLY ASKED QUESTIONS (FAQs)
With our rent to buy scheme, you can look forward to a straightforward and affordable process that lets you open the door to the perfect home.
We’ve put together a list of useful FAQs to address any queries you may have regarding the scheme.