Rent to buy - how?

gastons

Me and my partner are looking to do the rent to buy.

How do we go about doing this?

Has anyone successfully done this and is there a certain criteria you have to meet?

johnnyskeleton

gastons wrote: »

Me and my partner are looking to do the rent to buy.

How do we go about doing this?

Has anyone successfully done this and is there a certain criteria you have to meet?

It's not one unified thing. It was a serious of dodgy ways of trying to get properties sold. They were rented at above average rents with a to buy level higher than market and I'm not sure how many people they sucked in.

If you see a property that is offered as rent to buy, ask is the rent a good rate, is the purchase price a good price and is it a better option that straight up rent/purchase?

riclad

I think you rent for say 3 years,
say house is 100k,
they deduct the rent from the house price ,
if you agree to buy the house.
I,M presuming house price does not rise over the 3 year period.
I,M going by what i read ,in the papers, last year.
I presume you are asking about private , not council housing.

Bepolite

It's a bit of a gimmick but the underlying theory is sound, you rent it proves you can make the loan payments then you get saddled with a less than optimal mortgage and probably a slightly higher purchase price / a property that wasn't going to shift in a hurry.

If you're struggling to get mortgage approval it might work but as johnnyskeleton has indicated there are no real hard and fast rules each will have different criteria. Run it by a decent solicitor / financial advisor.

I would be concerned about clauses about the property increasing in value or you having to secure your own mortgage after the rental period is up. I would also assume if you move within the period the money is gone as per rent and I would check there are not restrictive catches to the contract, such as being late once with rent means you loose the money / can't get loan approved.

gastons

Thanks for the replies.

It doesn't seem so good after all.

Maybe opening a credit union account and saving for a deposit on a mortgage would be better?

Do credit unions do mortgages?

L1011

Banks won't consider the rent to be a deposit. The price you agreeed to at the start may be far more than its worth, if not its likely they'll try demand a price increase.

Credit unions do not do mortgages.

gastons

Some house prices are fairly cheap, I would hate to do the rent to buy and suddenly the house is worth more.

Are mortgages from the banks really hard to get?

One of us work, we have three children. We are capable of saving a fair amount each week.

We haven't been saving it in our bank, maybe we should start?

Bepolite

gastons wrote: »

Some house prices are fairly cheap, I would hate to do the rent to buy and suddenly the house is worth more.

Are mortgages from the banks really hard to get?

One of us work, we have three children. We are capable of saving a fair amount each week.

We haven't been saving it in our bank, maybe we should start?

The only way you're going to know is ask to be honest. Get on to a few banks. You need to show a history of saving, ideally the amount a perspective mortgage might be, so you're really aiming to save around €500 - €1000 per month on top of your outgoings, depending on the mortgage you want.

Rent to buy if done right, IMO is great for people on the fringes - we really need a proper statutory scheme (we had one, now departed!) to allow people access to purchasing given the bonkers rental system.

Very best of luck to you OP. It won't hurt to save what ever you do. Always be alive to the small print.

TheHappyChappy

buyer (or renter) beware

snubbleste

There is the HCL

gastons

Thank you for the link! I appreciate it

TheHappyChappy

`+1 great info