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How Does Rent to Buy Work for Me?


Rent to Buy is simply a way to buy or sell something, except that the transaction does not take place immediately. The Rent to Buyer and Rent to Seller basically agree to the possibility of a sale sometime in the future, usually in a few years’ time, and draw up a contract agreement. In the meantime, the Rent to Buyer lives in the property, and pays rent to the Rent to Seller, which also contributes to reducing their house deposit when they go to purchase the home in the future.

This agreement drawn up for a Rent to Buy property through Homes with Options has positives for both the Buyer and Seller, and the flexibility of each individual contract means it can cater to both sets of needs. (Find out more about our Rent to Buy through Homes with Options here.)

You may be wondering what the benefits are to embarking on a Rent to Buy deal, so we are going to go through the main positives for the buyer:



For Rent to Buyers, one of the main benefits is the ability to live in your ideal property sooner than you thought you could. This allows you to begin any desired work or home improvements to the house, and begin creating your ultimate home before you’ve technically purchased it. It means you don’t have to wait and rent somewhere else while you’re saving up for a deposit, and if you have found your dream house you can secure it already, even before you can fully afford to.

Rent to Buy also means that you aren’t throwing away your rent money into a property that you have no investment or future potential in. When you are contributing rent in this scheme, you are contributing towards your future home and your deposit, making it far more of an investment.

Rent to Buy works for you when you aren’t fully able to afford a mortgage or house deposit immediately, but also when your credit score is bad or in need of improvement. For many people attempting to get new mortgages, they are discovering how important their credit score is. If yours isn’t totally sorted, then Rent to Buy offers you a few years to improve your credit score, allowing you to wait until you are completely financially ready before purchasing the home.

Another benefit for a Rent to Buyer is that you have the ability to lock in a purchase price at the time of the contract being drawn up, in case home prices rise over the next few years. This means that both Buyer and Seller know what the ultimate price of the property will be, and that price doesn’t change at any time throughout the contract.

The fact that the Buyer can live in the property while they are renting, and before they purchase it, also benefits the you in that you can get to know the home and neighbourhood first. You can opt out of the contract and finally purchasing the Rent to Buy property at any time, although bear in mind that you would have to compromise whatever money you have already contributed to the home. However, ultimately, the benefits and positives of Rent to Buy from the Buyer’s perspective greatly outweigh any potential negatives.



If you’re feeling inspired by these potential benefits, and are interested in learning more about it. Please check out our Rent to Buy article here!

Alternatively, please contact us here at Homes with Options today!