I cross my heart and promise to give all I have got to give
to make all your dreams come true. In all the world,
You will never find a love as true as mine
Girl: How Much Is Your Salary..? Boy: No Salary, But...
Girl: No But.You Have Nothing. How Can I Marry You? Leave Please!!
Boy: (talking To Himself) I Have One Villa, 3 Property Lands, 3 Ferrari ' S, And 3 Porsche's. Why Would I Need To Have A Bmw ? How Could I Get A Salary When I'm The Boss! & The Girl Lost Her Chance =P =D
Forget Bad Credit with a Rent To Buy scheme that helps people with Credit Problems Get On The Property Ladder
If you have had credit problems in the past you’ll know that it is virtually impossible to get a mortgage to buy a house and you will be stuck paying dead rent forever. This short article explains how Rent To Own (also known as Rent To Buy or Rent 2 Own)schemes can get you onto the UK property ladder and well on the way to owning your own home. We’ll look at how you can move into your own house without needing a mortgage at all and if you don’t need a mortgage you can’t fail a credit check, can you? Finally, we’ll look at some of the benefits of becoming a tenant buyer.
Getting a mortgage these days is hard enough. The lenders don’t want to lend at all and if they can find an excuse not to offer a mortgage they’ll take it. If you have a bad credit history, they’ll offer you a low loan to value (LTV) and a high interest rate. Coupled with that will be extortionate ‘arrangements fees’ of up to 3%-4%. Rent To Own schemes do away with the need for a mortgage completely because the initial part of the agreement will be a standard AST tenancy and you will have an Option to buy (a Purchase Option) the house later. Your purchase price is agreed at the beginning and is usually the current market price. You will need a small deposit of around 5% to 10%.
You start on the property ladder as a tenant with a Purchase Option. The Option Period will last for 3 to 7 years and gives you the legal right to buy the house at the agreed price. You can exercise your option at any time right up until the end. The Option Period will be set for long enough for you the clear your bad credit history at which point you should be in a position to buy the house in the normal way. So, you can see that under a Rent To Buy agreement, you are both a tenant and a buyer. In short, you are a tenant buyer.
As a tenant buyer, you have a number of benefits under the Rent To Buy scheme. You have an option but not an obligation to buy the house when you are ready. If your plans change, you are not obliged to buy the house and can simply walk away. You are able to get into the house by providing a very small deposit compared to what the banks would charge. You can treat the house as your own because you can be safe in the knowledge that if you spend any money on the house making improvements, your purchase price was agreed at the start of the Rent To Buy agreement. You will benefit from any house price rises.
Resource box
To get on the property ladder as soon as possible, get on our mailing list for the latest Rent To Buy properties in the UK. Get into your own house while the house prices are near the bottom of the market and start benefitting when house prices go back up. Get-On-The-Property-Ladder.co.uk are Rent To Buy & Rent To Own specialists and work with many of the best UK property sourcing companies to bring you some of the cheapest property available.
Rent To Buy gets the Self Employed onto the Property Ladder
If you have started a successful business and making money for yourself, your house dreams could be shattered because you can’t get a mortgage and you could end up paying dead rent. In this article, I’ll explain how Rent To Buy (also known as Rent To Own or Rent 2 Buy) schemes can help you achieve your house dream and get you onto the property ladder in the UK. I’ll show a clear path to owning your own home. You’ll see how you don’t need a mortgage and if you don’t need a mortgage you don’t need three years’ books or payslips. We’ll also look at some of the benefit of being a tenant buyer.
In the current financial climate banks don't want to lend and that has just about killed the property market. If you are Self-Employed or just starting out in your business, the banks will regard you as a high risk and you’ll be penalised with a large deposit and high interest rate. They’ll also impose stiff arrangement fee that can really add up. Rent to Buy schemes don’t need a mortgage initially because the first part of the scheme is a standard AST tenancy agreement that gets you into the house. The second part is an Option to buy the house (a Purchase Option). The purchase price is agreed up front and will be around the current market price. This price is fixed until you buy the house. You will need a small deposit of around 5%-10% and this will be the Option Consideration.
So, you get started in owning your own house as a tenant with a purchase Option. The Option Period will be anything up to 10 years and, at any time in that period, you have the legal right to buy the house at the agreed price. You can agree an Option Period that suits your business goals. After a few years, you will have the books and evidence you need to obtain a mortgage in the normal way. You started the Rent To Buy scheme as a tenant and end up as a buyer; hence the term Tenant Buyer.
As a tenant buyer, you have many benefits under the Rent to Buy scheme. I mentioned previously that the Purchase Price is fixed at the start of the Option agreement. This means that if house prices go up, you will benefit from the increase. If you make any investment in the house like an extensions or improvement, you will keep all the gains.Remember also, you have an option to buy but not an obligation so it’s your decision that you can exercise any time during the option period. If house prices go down you may not want to buy the house and can simply walk away.
Resource box
To get on the property ladder as soon as possible, get on our mailing list for the latest Rent To Buy properties in the UK. Get into your own house while the house prices are near the bottom of the market and start benefitting when house prices go back up. Get-On-The-Property-Ladder.co.uk are Rent To Buy & Rent To Own specialists and work with many of the best UK property sourcing companies to bring you some of the cheapest property available.
Can a Rent to Buy scheme get me on the UK property ladder?
How on earth can anyone get on the property ladder these days? Mortgages are so difficult to obtain because the banks have tightened their lending criteria. Some would say that is a good thing but the sudden change from reckless lending to ultra-conservative lending has had the knock-on effect of stifling the property market. Consequently, the lack of buyers has driven house prices down.
At the same time, people who were lent 125% mortgages have watched the value of their home plummet to well below the value of their mortgage. Of course, if they don’t have a need to move on, they just need to sit tight and pay their mortgage repayments. This is where the double whammy of the credit crunch, the recession and now even the spectre of a second dip in the recession.
The banks are also sitting on a huge mountain of unreliable debt and there will be a ‘tsunami of repossessions’ in the coming year or two. Isn’t it ironic, then, that at the same time as many homeowners have mortgage they don’t want, there are many people that can’t get started on the property ladder for lack of a mortgage.
Don’t pay Dead Rent
Traditionally, in the UK, an Englishman wants to own his castle and objects to paying dead rent. By owning your own home, you have the right to decorate it any way you want. You can make any improvements you wish and you are not beholden to a landlord or a restrictive tenancy agreement. You can see it from the landlord’s point of view. He doesn’t want you to paint the living room purple because the next tenant will probably want it another colour. If you put up pictures with nails, he has to fill in the holes and redecorate – normally at the expense of your deposit.
Suppose you notice damp coming into the house. You’ll want the landlord to fix it before you kids’ clothes go mouldy or it triggers their asthma. But he’s got no interest in shelling out yet more money. He’s making a nice profit from your rent and you may find it difficult to get the simplest repairs done.
You may get lucky and secure a long tenancy and make the changes you like but you are always just two months from being moved on. This is why most people want to own their own home.
So, what’s the answer? It’s not rocket science – it’sRent To Buy also known as Rent 2 Buy and Rent To Own.
How Does Rent To Buy Work?
Different companies do it differently but it is essentially the same type of arrangement with each of them. You agree a price today to purchase the house at a future date. This price would typically be around the current market price or a few percentages points above. Some companies will ask you to pay a small deposit of around 5% which still compares favourably with the banks asking for 10%-25%. You will also pay slightly above the market rent. How much above will depend on how much deposit you paid in the first place. Normally this extra rent is offset against the purchase price or even added to your deposit. At the future date, or any time before that, you have the choice whether to exercise your option to buy at the agreed price. You would buy it in the normal way by using standard mortgage. The expectation is that, over this time, you will have saved a considerable amount towards the deposit and fixed any problems that were preventing you getting a mortgage in the first place.
Everybody Wins with Rent To Buy
There are so many advantages for Rent To Buy schemes that it is very surprising that it has taken so long to arrive in the mainstream of house buying solutions in the UK. The original house owner who was in trouble has been saved from repossession and walks away with his credit history intact and able to start afresh. The tenant buyer wins because he has a clear route to house ownership. The investor/landlord wins because he has a tenant buyer who looks after the house as if it was his own – because it will be!
The tenant also has another advantage in a Rent To Buy scheme because he has only an option to buy the house but not an obligation. If he subsequently decides that home ownership is not for him, he can simply walk away. It’s a sort of ‘try before you buy’ for a house. Most companies will charge an administration fee for them to find another tenant buyer.
How do I find a Rent To Buy property in the UK?
Well, this is the hard part. If you consider how it all works, you’ll understand just how difficult it is to match motivated vendors with tenant buyers. It’s a bit like looking for two needles in a haystack and when you find them hoping that they match. Some companies operate websites to find the sellers and build up a list of available properties. Other companies operate websites to offer these properties to tenant buyers. Nine times out of ten, the properties are not in the area that the tenant buyer wants to live. I suggest you sign up to the mailing list so you can be notified as new properties become available.
Get-On-The-Property-Ladder.co.uk
Get-On-The-Property-Ladder .co.uk has a mission to enable tenant buyers get started on the property ladder. We work closely with other UK property sourcing companies to find the best properties and then match suitable tenant buyers with a Rent To Own scheme.
