TENANT BUYERS: FAQ

  • WHAT IS A TENANT BUYER ?

    If you start out as a tenant and then exercise the option to purchase and become the buyer then you are effectively a tenant buyer.

  • HOW DOES THE PROCESS WORK ?

    As a tenant buyer you will sign up for a normal Short Assured Tenancy Agreement (the lease) and then we will get you to sign an option Agreement allowing you to buy the house at the agreed price at a time in the future, normally up to three years but possibly longer . You will pay the rent during the option period. The rent will include a rent credit (about 20% to 25%) of the rent helping to reduce what you pay for the house when you buy it.

  • WHAT COSTS ARE INVOLVED ?

    We will charge a non-refundable application fee of £350.00 which will be levied once we have reached agreement on the terms of the lease option. You will then pay us a non-refundable option fee to allow you to move in. This option fee will come off the agreed purchase price when you eventually buy. But it will be non-refundable should you decide not to exercise the option to buy. We normally ask for between 3% to 5% of the purchase price. But we are flexible on this and try and fit around what the tenant buyer can afford. Charging this fee ensures we are only dealing with people who are serious about owning their own home.

  • COULD ANYTHING GO WRONG TO STOP THE SALE GOING THROUGH ?

    The tenant buyer must keep up the rental payments. If rental payments are more than two months in arrears then the option could become null and void. If the option is withdrawn then all options fees would also be lost. We would also begin legal proceedings to regain possession of the house. You would also need to make sure that you will be able to access mortgage finance at the end of the option period. This should not be a problem if you have restored your credit rating and have built up a healthy deposit over the option period. However if the time is not right there may be an opportunity to extend the option period.

  • I'VE NEVER HEARD OF THIS BEFORE. IS IT LEGAL?

    Absolutely legal! Residential lease options are new to Scotland, although commercial lease options have been around for years, hence the reason you have not heard of it before. Residential lease options have been commonplace in Australia, United States and Canada for many years. But they have found their way over to the United Kingdom in the last year or so. They are being used more and more in England, but have just really emerged in Scotland. We are one of the pioneers of this system in Scotland.

  • WHY HAVE THEY STARTED BEING USED IN SCOTLAND ?

    The credit crunch and the difficulties we are all facing in accessing mortgages have led to the emergence of rent to buy/own. First time buyers still want to get on the property ladder, homeowners still need to move, this is a creative way of getting around the problems associated with lack of mortgage finance availability in the present climate.

  • HOW LONG DOES IT TAKE TO MOVE IN ?

    You could be relaxing in your new home within a few weeks of your initial enquiry.

  • DO I NEED TO BE IN EMPLOYMENT ?

    Yes. You would need enough income to cover the monthly costs of running your own home i.e. rent, council tax, heat and light etc. Full referencing checks will be carried out.

  • DO I NEED A LAWYER ?

    We always recommend you seek legal advice before signing the tenancy or option agreements. Obviously you will need to engage a solicitor when you come to buy the property.

  • I'M VERY KEEN. WHAT HAPPENS NEXT?

    Please fill in the form and we'll be in touch within 24hours.