faq rent to own

1. How can I afford to buy a property?

If your able to rent then your able to buy a property via Rent to Own.

2. If Renting to Own, when can I move in?

Immediately once the contracts have been signed and deposit paid, your free to move in straight away.

3. Will I make a profit on Rent to Own?

As the purchase price is fixed with an option to buy during the fixed period, any increase in the property value is yours to keep once you exercise your right to buy.

4. Can I be gazumped?

You can never be gazumped as you have the option to buy during the fixed period. There is no other purchaser bidding against you.

5. How long does it take to create a good credit history?

This varies but on average 2 years is sufficient as it takes time to be a good candidate for a mortgage lender. Rent to Own allows you the time to build a good credit history.

6. Will you help prepare a credit history?

Yes its in all our interests that your credit history is acceptable to the main mortgage lenders.

7. Do I need a mortgage today?

No you do not need a mortgage today however you will need a mortgage to purchase the property in the future.

8. What type of customers use Rent to Own?

All types of customers use Rent to Own for example:

Customers who have not lived in the UK for a long time.
Customers with poor credit who need time to rebuild their rating before buying again.
Customers who do not have the hefty 10 – 20% deposit required by mortgage lenders.
Customers going through a divorce where one partner may not qualify for a full mortgage.
Customers who are self employed and do not have accounts to show the mortgage lenders.

9. With Rent to Own am I a tenant or buyer?

You will be a tenant buyer. This means you will have a standard AST tenancy agreement however unlike a normal tenant you will also have a written contract giving you the right to buy at an agreed price during the fixed period.

10. How do I fund the deposit when I’m ready to buy?

If you wish you can overpay a portion of your rent towards your mortgage deposit. This means each month you are reducing the agreed purchase price.

11. Is Rent to Own safe and secure?

Yes for two main reasons:

You have a written contract stating you have the option to buy at an agreed price during the fixed period and the property cannot be sold to anyone else.

12. How much does this all cost?

Each customers circumstances are different therefore each property solution is tailored to your needs. The Property Step recognises that one size does not fit all, so our customers are dealt with on a case by case basis.

However our customers must:

pay a deposit to qualify for the right to buy at a later date during the fixed period
pay rent on or before the due date typically the 1st of every month

The deposit and rent amount is by mutual agreement with The Property Step.

To join our waiting list of customers for Rent to Own properties please click ‘Rent to Own Required‘ to  register your interest. We will contact you as soon as we have a property available.