RENT TO BUY

Do you dream of owning your own home but are finding it difficult to save for a mortgage deposit?

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.

From year one to five you have the option to purchase a share of your home and after five years you’ll have the option to purchase outright.

• You’ll need to be in a working household, which means at least one member of your household must be in full time employment
• You must be a first time buyer
  having not previously owned your own home or where you are looking to return to home ownership following a relationship breakdown
• You cannot be a current homeowner (or named on the deeds of another property) either in this country or abroad
• You have a good credit history without any outstanding credit issues such as unsatisfied defaults or county court judgments (CCJs)
• You are a UK citizen or have the right to remain in the UK
• You would be unable to purchase a home suitable for your needs without assistance
• 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.

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.

All applicants over the age of 18 applying for a rent to buy property will be required to undergo a financial assessment and statutory checks which will be carried out by our independent financial advisor. There will be no cost to you for these checks.

The assessment includes:

• A right to rent check and fraud prevention checks to confirm that you have the legal right to rent a property in the UK. You will need to provide valid proof of your current address and photographic ID
• An employment reference and confirmation of your monthly household income
• Credit referencing to confirm you have an adequate credit score to obtain a mortgage during the five-year period to purchase the property
• Please be aware we will be unable to proceed with your application if you have any bankruptcy or CCJs issued within the last three years
• We will require a reference from your current landlord or letting agency (if applicable)
• Only applicants approved for rent to buy and included in the application can live in the property. Subletting is not permitted within the terms of the tenancy agreement. You must notify us of any change to the household details during the tenancy period.

You will be required to a sign a rent to buy option agreement, along with your tenancy agreement, before you move into your home, confirming your intentions to use the benefit of the five-year reduced rent period to help you save towards a mortgage deposit. The option agreement sets out the terms and conditions should you decide to purchase the property either during or at the end of the five-year rental period. This will be monitored and assessed on a yearly basis throughout the five-year term.

In addition to your rent payments, you will be responsible for all utilities (gas, electric, water) associated with the property from the day you move in.

Meter readings will be taken at the handover meeting to allow you to set up accounts in your name. You will also be responsible for
council tax and any telephone, WiFi and TV subscriptions.

If you choose to purchase your home you will be liable for the following costs:

• Solicitor fees
• Stamp duty (if applicable)
• Mortgage arrangement fees (if applicable).

You will be unable to end your tenancy agreement within the first six months. After this time, you will need to contact us and complete a tenancy termination form, giving no less than one month’s notice to end your tenancy. You must ensure the property is returned to us in the same condition as when you moved in and that your rent account is not in arrears.

If your circumstances change and you’re no longer able to fulfil the rent to buy agreement, we request you contact us at the earliest opportunity.

Rent to buy customers are not eligible to apply for any of the following schemes:

• Statutory Right to Buy
• Statutory Right to Acquire
• Right to Shared Ownership.

You will be required to enter into an Assured Shorthold Tenancy Agreement.

The tenancy agreement will be fixed for the first six months and 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 be provided with a copy of the tenancy agreement during the application process to give you time to read and understand the commitment you are entering into.

The tenancy agreement will set out the responsibilities of both Beyond Housing as your landlord and yourself as our customer. This will include your liability for paying your rent and upkeep of the property. It will also detail our responsibilities to you as a tenant and your responsibilities to us as landlord. The tenancy agreement 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.

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.

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. You will be required to pay the service charge while you are our customer and also once you purchase your home on either a freehold or shared ownership basis and we will provide you with an up-to date schedule at that time.

Rent payments will be collected on a monthly basis in advance. The first month’s rent is to be paid one 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.

As your landlord, Beyond Housing is responsible for maintaining the property under the terms of the tenancy agreement. When you move into your home you will be provided with a handover pack which will include instructions on how to report a repair or property defect to us. You will also be given details of how to set up a Me and My Home online account. This allows you to check your personal information, your rent statement and report repairs.

You also have your own responsibilities within the tenancy agreement to keep the property in good order. Beyond Housing will not be held responsible for costs relating to damage caused to the property by customers or visitors.

Under the terms of the option agreement, from the end of year one to year five you will be able to apply to purchase a share of the property on a shared ownership basis (subject to further eligibility and affordability checks being carried out).

If at the end of the five-year period you wish to purchase your home, a valuation by a RICS chartered surveyor will be required.

Beyond Housing will arrange the valuation to be carried out on your behalf and you will be responsible for the cost. The valuation will confirm the current open market value of the property.

We will check this isn’t less than the initial value detailed within your option agreement and that we are able to sell the property to you.

If you live in a house, you will be able to buy the freehold of the property. If your home is an apartment, the property will be sold on a leasehold basis and a lease will be granted.

Should you proceed to buy your home our independent financial advisor will be able to provide you with an agreement in principle for a mortgage lender confirming you are able to secure a mortgage.

If you decide not to purchase the property or are unable to do so due to your current circumstances, notice will be served to end the current tenancy agreement, under the terms of the option agreement. If you wish to remain in the property a new tenancy agreement based of the full market rent will be offered.

During the five-year period, we will contact you on an annual basis to review your financial status and check that Rent to Buy is still suitable for your needs.

If you are unable to buy your home, you will need to inform us six months before the end of the five-year term, to allow adequate time for a new tenancy agreement to be put in place if required.

If you have purchased your home on a freehold basis, without ongoing service charge payments to Beyond Housing, you can sell your home at any time on the open market without contacting us.

If you own your home outright with an ongoing service charge, you will need to let us know when you are selling. This is because your purchaser will need to enter into an agreement with us to continue to pay the service charge and their solicitor will require a leasehold pack from us.

If you own the property on a shared ownership basis and wish to sell your share you will need to contact Beyond Housing prior to placing your home on the market. A member of our team will provide you with the required information and guidance on how to sell your property.

Beyond Housing has a duty to ensure that all necessary precautions are undertaken to satisfy both ourselves and our regulator Homes England that applicants applying for affordable home ownership schemes are eligible to do so.

We work closely with our independent financial advisor to satisfy this requirement and ensure that all relevant checks have been undertaken to prevent fraud in all instances, including the application process for the rent to buy scheme.

As an organisation we monitor closely for any breach in the terms of the tenancy which would lead to immediate termination.