Rent to buy scheme?

Suarez

A property has come up in the area to me being sold by Ainsworth Lord Estates. It is advertised as follows...

"No Mortgage needed. £5,000 deposit, then £184 p.w buys this property. Full Price £125,000"

Is their a catch somewhere in there? Is selling like this above board?

Dave_Ham

These are now quite commonplace and there is no real catch, although it can be more expensive.

With the £5k you will buy an option agreement (I assume) and pay a usually inflated rent price for 3 or 5 years when you will have the "option" to buy at a pre-agreed price

The seller usually does this on a property they cannot sell and inflate the rental and the sale price, as low entry.

Additionally, if you cannot finance a mortgage at the end of the 3 or 5 year term the owner/landlord has had a tenant who paid £5k upfront (usually non-refundable) and overpaid on rent for 3-5 years. Additionally you would have looked after the house better than a tenant would have done.

Can work for all, depending upon circumstances..

Hope this helps..