Rent Now, Buy Later

If you're wanting to get on the property ladder now, but either haven't got the deposit saved or don't yet qualify for a mortgage, our Rent Now Buy Later scheme could be just the answer.

What is Rent Now, Buy Later?

Rent Now, Buy Later allows a buyer to rent a seller's home while they are working to improve their credit. It lets the buyer get into their next home before they can actually qualify for a mortgage, or whilst they are saving for a deposit. The buyer can then purchase the home at a later date at a predetermined purchase price.

Why do Rent Now, Buy Later?

The biggest advantage for buyers it that Rent Now, Buy Later allows you to move into your home now before you have to obtain financing. The scheme gives you time to repair your credit or pay off some other debts or build up a deposit. With the current lending crisis it can be difficult to qualify for a mortgage, which means many good buyers without a decent deposit cannot buy homes.

So it's perfect if you are either;

- A first time buyer struggling to get onto the housing market

- Struggling to raise a large deposit

- Currently renting but want to own your own home

- Have impaired credit and can't raise finance

- Have recently moved to the UK

An Example of How Rent Now, Buy Later works

A seller is selling his home on a Rent Now, Buy Later basis for £200,000 with a monthly rental rate of £700. A prospective buyer, who cannot qualify for a mortgage right now, or hasn't got sufficient deposit saved wants to purchase the home. A deposit of £4,000 (or 2% of the purchase price) is paid by the buyer which secures their right to purchase the home within 24 months for the price of £200,000. This deposit will be deducted from the purchase price when the buyer purchases the home later, but is non-refundable if the buyer doesn't purchase.

Additionally, the buyer makes a monthly top up payment of £150, which will count toward the purchase price of their home, when the sale goes through.

After 24 months the buyer is able to qualify for a mortgage or has saved sufficient deposit and purchases the home. The option fee of £4,000 is deducted from the purchase price of £200,000, as are the monthly top up payments which now total £3,600 (24 x £150) leaving a balance of £192,400 payable, as a deposit has already been paid of £7,600 (3.8%).

If you can afford to pay more deposit and top up then great. On the above example, if you had put down an initial deposit of £6,000 and paid a monthly top up of £250, then after 2 years, you would be left with a balance of £188,000 having paid a deposit of £12,000 (6%).

What recent buyers thought of Rent Now, Buy Later

"From 1st contact with Paul Heaton at Underwood Lettings we were in the house within 7 days.

We saw the “rent now buy later” option for a perfect house that we wanted and set the  wheels in motion.

The contact between Paul and us was brilliant and he answered any queries straight away and made the whole process very easy to understand and complete.

He is a very professional person to deal with and I would recommend anyone to use him.

This is a great option for us as the deposit for the option to buy is manageable and we can also add more to this deposit with a top up each month to help us when we do purchase the house.

Thanks again Paul"

Kelly Cuthbertson & Damien Harvey

21 Ash Tree Grove

Whinmoor

Leeds

LS14 5LT

For more details on our Rent Now, Buy Later scheme or to be added to our mailing list of forthcoming Rent Now, Buy Later properties, click here