Rent to Buy is a new tenure that makes buying your own home more affordable.
What is Rent to Buy?
With the Rent to Buy scheme you rent your home for a 5-year period at an intermediate rent of 80% to market rent. The idea is that this allows you to save up for a deposit in this time period. After the 5 year rental period, you will then have the opportunity to purchase your home (100% including freehold) directly from Hellens Residential at market value. The rent that you pay throughout this time does not contribute to the purchase of property. If after 5 years you do not want to buy then you are able to continue renting at market rent levels, end your tenancy, or we may sell the property on the open market.
Key Features
- Rent to Buy homes must be let to working households at an intermediate rent to give them the opportunity to save for a deposit to buy their first home.
- The homes will be offered at an intermediate rent for a minimum of 5 years.
- Tenants must be working at the time of letting and have not previously owned their own home unless they have suffered a relationship breakdown.
- If the tenants do not exercise the choice to purchase, Hellens will retain the property as rented housing (market rate rent) or sell it on the open market.
- A deposit is required prior to the start of tenancy, which is the equivalent of a month’s rent. This will be returned in full should you purchase the property or if you choose to end your tenancy and there is no damage or rent arrears.
Tenancy
The 5-year rental period is as follows:
- 1-year probationary tenancy (You are not able to end your tenancy is this period)
- 2-year fixed tenancy
- 2-year fixed tenancy
