This information is for:
Adactus Housing Association, Beech Housing Association, Chorley Community Housing, Miles Platting

What is Rent to Buy?

Rent to Buy is a scheme allowing working households to rent a home at Intermediate Rent with the intention of buying it in the future.  Intermediate Rent is usually set at up to 20% less than the average local market rents.  This way, while living in the home they want, households have the opportunity to save for a deposit and then go on to purchase their first home.

 

Main features of Rent to Buy

The scheme allows for a home to be let at an Intermediate Rent for a minimum term of five years.  It is anticipated that within five years, the tenants would have saved enough money to put down a deposit for buying their home.

After this initial five year letting period, should the tenant not wish to purchase the property from us, we would continue to offer it as Rent to Buy . If the property becomes vacant, we can choose whether to sell it on the open market, sell through shared ownership, or convert it to market rent.

Applicant Eligibility

Rent to Buy homes are not subject to local authority nominations although we may choose to work with the local authority to identify potential tenants.

Rent to Buy tenants must be from working households and intending to buy their own home in the future at the time of letting.

To be eligible for Rent to Buy, applicants must be first time buyers or returning to the market following a relationship breakdown.

Intermediate Rent

Intermediate Rents are offered at a value above social rent but below market levels.  Intermediate Rents can be set up to 20% lower than the average local market rents (inclusive of service charges).

In order to provide protection and certainty for tenants, the maximum annual rent increase will be the Consumer Price Index plus 1%. The Consumer Price Index will be taken as at September of the previous year.

Home Ownership

Rent to Buy homes will be offered for sale at market value.  Tenants wishing to purchase their home, will need to secure a conventional mortgage to do so.  Buying a home with Rent to Buy does not require an additional affordability assessment, other than that of the mortgage lender.

If we decide to make the home available for sale through Shared Ownership, the tenants will be able to purchase a share in their home starting from as low as 25%.

Further Information

If you would like further information regarding Rent to Buy, please contact our dedicated shared ownership sales team on:

t: 01942 267 819
e: sales@snugghomes.co.uk