Typical Rent-to-own tenant-buyer and who can purchase Rent-to-own.
- Understand who can buy the Rent-to-own property.
- Understand which of your circumstances are the best for Rent-to-own.
We believe Rent-to-own is the future of the world where no mortgage is required to buy the property, and everyone can buy the house when he wants and not when he can.
The requirements we have are simple:
- Tenant-buyer needs to be able to purchase the property legally. Typically, the individual has to have legal rights to stay in the UK and is not a citizen of officially blacklisted countries.
- Deposit transfer needs to meet our internal Anti Money Laundering requirements, which means we need to be happy with the proof and source of the deposit. And yes, we are working on accepting cryptocurrencies as the method of payment.
>> No or bad credit history.
You are required to get a mortgage only when purchasing, so you can be confident that even credit history is less relevant. However, depending on the severity of your situation, we may ask you to put down a higher deposit or/and require you to make regular overpayments towards your purchase. It is due to the lenders likely asking for a higher deposit at the time of the purchase. You and I need to be prepared for this situation in the future. We will examine your current credit profile throughout to ensure the risk of you obtaining the mortgage in the future is kept to the minimum. In addition to that, we will carry out half annual credit file checks to make sure you are in progress with your improving credit score and get a mortgage advisor to guide you through regularly.
>> Low or no income.
We are sympathetic towards your income as we understand that it can go down, up and down. So regardless of the situation, we are very likely to give the green light to clients with low or no income, subject to seeing the likelihood of their income going up sufficiently to get a mortgage. You may have just started the business, or your business is not generating high income yet, you may have little kids, and one of you is not working at all or on reduced hours. As long as there is a way up with your earnings, we are ok.
>> Foreign nationals or just moved to the UK.
Probably one of the primary sources of clients. You are in the UK with no or little credit history, and just no one will give you a mortgage. But you are here not to rent, but to own your place. If you are legally in the UK, or perhaps you are just about to move to the UK, Rent-to-own might be the best option for you. Subject to further checks, clients from abroad are very likely to be accepted, especially with higher deposits.
>> Personal circumstances.
Your circumstances prevent you from owning the property, but you wish to have a permanent place which you will be able to buy in some time. It might be just anything, but the most common circumstances that come across are divorces, death in a family, prison sentence or failed businesses. We are sympathetic towards any of these or similar events. Rent-to-own is the right option for you.
>> Single parents often have lower income.
As you are likely to increase your revenue once your kids go to school or become independent, it is just fine for Rent-to-own. You will apply for the mortgage and purchase once your circumstances will be better in few years.
>> Students or graduates.
As a student or a graduate, you typically don't have income but still need to live somewhere. There is usually just rented accommodation available. But Rent-to-own is the far better option. It usually is a close family who provides a deposit, which is by all means fine. As the purchase option can be assigned to the other individual or firm, even if a student cannot complete it, someone else can purchase it instead. So it is a win-win situation.
>> People with significant current commitments.
Some of our tenant-buyers are on high wages, but their monthly obligations make them not approved to obtain the mortgage. With Rent-to-own, your credit profile is only really relevant once you apply for the mortgage. So as long as there is a way to pay off your commitments, Rent-to-own is an option for you. So if you have Car Finance, large Credit Card bills, personal loans, plus a student loan at the moment, it doesn't mean you will have all these commitments in years to come.
>> Sharia Law.
With Rent-to-own, you don’t need to apply for the mortgage or pay any rent. We may schedule the agreement to be Sharia Law compliant, and all your payment goes towards the higher purchase price. In addition to regular fixed overpayments, you can own the property outright after the Rent-to-own term.
The typical best client for Rent-to-own is the bad client for a mortgage People with all sorts of problems are accepted for the Rent-to-own scheme. You can be sure that as long as you have legal rights to stay in the UK and prove money for the deposit, you are eligible for Rent-to-own.
The joint venturer taking responsibility for payment of anything to do with the property, including:
- Utilities, council tax.
- Letting fees.
- Home insurance.