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Rent-to-Buy scheme transfer to someone else

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  • 04-11-2012 8:11pm
    #1
    samhail
    Registered Users Posts: 2,699 ✭✭✭


    Hi All,
    A friend took up a Rent-to-Buy scheme about a year+ ago and is now considering moving to London. I can't seem to find any other threads that might answer my q, nor any documentation online since the scheme is not available anymore.

    I have not gotten a mortgage yet, and know that the first time buyer relief is finishing up at the end of the year.

    Instead of her buying the house (can't afford the extra deposit required) can i get a mortgage and buy the house instead of her?
    Thanks.


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    #2
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    samhail wrote: »
    Hi All,
    A friend took up a Rent-to-Buy scheme about a year+ ago and is now considering moving to London. I can't seem to find any other threads that might answer my q, nor any documentation online since the scheme is not available anymore.

    I have not gotten a mortgage yet, and know that the first time buyer relief is finishing up at the end of the year.

    Instead of her buying the house (can't afford the extra deposit required) can i get a mortgage and buy the house instead of her?
    Thanks.

    Are you looking to buy the house using the rent she paid as your deposit or do you have funds to cover the deposit and borrow the rest? You'll have great difficulty securing mortgage approval if you haven't saved a deposit for yourself. If you have a deposit and can get mortgage approval you have 2 options. 1) You approach the owner to see if they will accept your friends rent payments as contributions towards the purchase price and the balance remaining to pay becomes your contract price or 2) You negotiate a purchase price based on the current property value and just make a straightforward offer to buy the house at it's current value. Given that your friend signed up for this 1 Yr+ ago, I'd expect you would be able to negotiate a cheaper purchase price using option 2 & just making an offer. The vendor will be happy they have received rent to date (at possibly over the market rate) and may be open to offers. If you have a deposit and can get mortgage approval there's no need for you to get involved in a rent to buy purchase that doesn't concern you...


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