What is Rent to Own?  Put simply it is a new way of buying a property where you start out as the tenant, then end up as the owner. 

For tenants it has the advantage that you can save for your deposit whilst renting, and at the same time live in the property which you will one day own!

For the seller it has the advantage of not leaving the property empty for months whilst looking for a buyer, you get a pre-agreed fixed price and in the mean time a rent income which covers the mortgage and maintenance costs.

To make this work for both the property buyer and the seller a legal contract is required, this contract is commonly known as a “lease option”.

We have set up a category for rent to own on this blog where you can read more posts about this new and rapidly growing way of buying and selling a property.

Some key points to note for Rent to Own:

For the tenant-buyer, make sure your contract has been reviewed by a solicitor.  Rent to own contracts are very different from a tenancy agreement.  One key points to be aware of is that the contracts often include a clause that may result in your losing the right to buy if you default on rental payments.

For the seller, as with the tenant-buyer, you should have your contract reviewed by a solicitor.  Be aware also that there is no guarantee the tenant-buyer will in fact buy your property. As the seller it is also advisable to carry out tenant checks on the prospective tenant-buyer, these can be obtained for less than £10 at www.credit-check-services.co.uk/services.asp