Rent to HomeBuy (RTHB) allows you to rent a property for a maximum of 5 years (minimum of 6 months). Whilst renting the property you would pay 80% of the market rent plus any applicable service charges (excluding ground rent and sinking fund costs). Under this scheme, you can buy the property!
This scheme is limited to those with a maximum household income of £60,000 per annum (including capital savings) and is ideal for first time buyers. RTHB is not available to investors or second home owners or to parents to fund for their children.
In order to qualify, you must complete a budget planner which includes having the ability to save the equivalent of a 10% deposit in order to purchase the property any time from 6 months to 5 years on a 50% shared ownership basis. At the time you wish to buy, the property is valued by an independent RICS qualified valuer and it is this value the property is sold for. At the time of the application, you will be advised the minimum price we will sell the property for.
We take affordability very seriously and to ensure you can realise the dream of owning your own home, we assume in the budget planner that a 10% deposit will be required and that property prices will increase by 10% over the 5 year period.
Once you have purchased your property, you will pay a mortgage on the 50% share, rent at 2.75% of the outstanding equity on the balancing 50% share plus any applicable services (including ground rent and sinking fund costs).
If you wish to view a property, our specialist Property Advisors can show you around, explain the scheme further to you and assist you in completing all the necessary paperwork. Once you have moved in, your rent account and other services are managed by a specialist team of Residential Letting Officers who will be happy to assist with any queries.
Rent to Homebuy is here to help you get on to the property ladder. If this scheme is of interest to you, please call the sales hotline on 0800 445567 or check our property directory here.