Rent to Buy Scheme

Objective:
The purpose of this scheme is to facilitate buyers in the sale of properties to purchasers who can afford a monthly mortgage payment however do not have:

• A= sufficient funds to allow them to put a deposit down now; or
• B= or a bad credit history

The solution is for buyers to rent the property they want to buy for a 12/24 or 36 month period with the rent paid being used to meet the required deposit and also demonstrating a payment history over the period so that a mortgage can be obtained to complete the sale at the end of the rental period.

How does it work:
Interested buyers will be subjected to a “Financial Health Check” by an mortgage broker to establish that they meet a certain criteria which will enable them to get mortgage approval in principle and therefore in all probability a mortgage at the end of the rental period to complete the purchase. Subject to this criteria purchasers will sign.

Purchase Price:
Some Developments offer a ‘Purchase Price Guarantee’ where the developer agree to reduce the price up to a certain percentage if values fall. This means on signing contracts the purchaser may be the beneficary of a price reduction.