Rent To Buy is the perfect option when you’re left with the choice of renting or selling your house. Rent To Buy gives you the opportunity of transferring almost all the responsibilities of your home to another person for an agreed amount. You don’t get to bother about anything concerning the house, while you still receive monthly income – guaranteed.
Rent To Buy Process
- You agree with us on a set of terms binding the transaction, using a Heads of Terms. We will now send the agreement to our solicitors for drafting. The drafted Heads of Terms will contain every relevant information relating to the agreement, such as exact purchase price, the amount of monthly rental income we will pay you for using the property, purchase price payment completion date, etc.
- You review the drafted agreement, with the help of your solicitor (it’s recommended you use a solicitor that’s familiar with Heads of Terms agreement).
- After everything has been reviewed and agreed upon, we take over the management of the property. You don’t have to do anything again from here – just wait for your monthly payments.
Benefits of Rent To Buy
- No landlord responsibilities – even when tenants trash the house, it’s none of your business.
- You receive the full asking price for your property, provided you’re flexible about the payment.
- You continue earning monthly income, until the final payment is completed.
Is there any risks involved with Rent To Buy?
Risks are inevitable when selling or renting a house. However, you can mitigate the risks associated with Rent To Buy by making use of a specialist solicitor and a tightly worded contract. Below are some of the risks associated with this type of sale:
- Inability of the buyer to complete the full payment by the specified date. In this instance, you (the seller) can take back the possession of the property or extend the payment date, without no obligation whatsoever to refund previous payments received. When this happens, you profit both ways – from the already received monthly payments and additional profit when you sell the house at the end of the contracted period.
- Inability of the buyer to make the stipulated monthly payments. However, you can regain back the possession of your property if the buyer is late on the monthly payment by more than 30 days. This is quite unlike the assured short-hold tenancy (AST), which is the default legal category of residential tenancy in UK. The Rent To Buy contract doesn’t necessary need long notice periods before regaining possession. You’ve complete legal right to your property once the buyer misses the monthly payment by more than 30 days. And like we already mentioned above, you don’t need to refund for previous monthly payments received.
What we do for you in a Rent To Buy
It’s solely our responsibility to maintain the house and remit your monthly payments accordingly, until we’re able to purchase the property. We take care of everything, from replacing furnishings to making sure the property well-tenanted. You’ve absolutely nothing to worry about.
How do we get paid?
We’re not like estate agents that will charge you commissions or fees. We take our fee from the tenants that occupy the house. How? – Because we make sure to only rent the house out to professionals, and also render unrivalled maintenance services, we can afford to mark up the price of the monthly rent.
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