rent to own

ninney_2

newbie here....i have inquired about a house for rent on gumtree. they have offered a buy to own scheme i am just wondering if anyone had any experience in this and is it worth doing?
The gentleman said that you put a deposit on the house and half of it goes off the asking price of the property.you then pay the "rent" which basically is the mortgage. He said that you basically babysit the mortgage and make sure all payments are met and doesn't go into arrears. I would be responsible for any maintenance and repairs whilst you are in the house.You have 5 years in which to rent/buy the property in and can make cash deposits which will knock off the asking price.
Does this sound legitimate and also what criteria do you have to have to have this and what rights do i have if i don't want the house after some time "renting" it

Mortgage_Mark_2

This sort of scheme, when reading your first sentence on where you found it, wouldn't fill me with confidence...

That isn't really the way the housing/mortgage market works.

harrys_dad

Run run as fast as you can........

princeofpounds

Whilst in theory contracts similar to that (but more logical) can exist, I would be 99.9% sure that I wouldn't want to be signing them with some bloke off gumtree.

egoode

ninney wrote: »

newbie here....i have inquired about a house for rent on gumtree. they have offered a buy to own scheme i am just wondering if anyone had any experience in this and is it worth doing?
The gentleman said that you put a deposit on the house and half of it goes off the asking price of the property.you then pay the "rent" which basically is the mortgage. He said that you basically babysit the mortgage and make sure all payments are met and doesn't go into arrears. I would be responsible for any maintenance and repairs whilst you are in the house.You have 5 years in which to rent/buy the property in and can make cash deposits which will knock off the asking price.
Does this sound legitimate and also what criteria do you have to have to have this and what rights do i have if i don't want the house after some time "renting" it

Firstly would you actually want to buy the place they are offering?

Also when is the price for the property set? What happens if prices go up over the next 5 years? After the 5 years are completed do you need to find a mortgage at that point to buy the place?

To be honest while this probably sounds like an easy way to get on the housing ladder it sounds really risky for you and not as risky for the vendor. If you are interested in pursuing it pay a solicitor to review the agreement and also do all the normal checks you usually would do when buying a property.

HappyMJ

If you do not exercise your option to buy within the 5 years you lose the price you paid for the option. It can work if the property market rises and you have the option to buy at today's price. This sort of agreement would require you to seek the advice of a solicitor to word an agreement.

If the value of the house fell then you could limit your losses by just writing off whatever you paid where if you had purchased it you might have lost twice as much.

These agreements are used in other countries much more often than here they are quite rare in the UK.

taylor86

It sounds like the genie way to buy a home without the mortgage. Look at ownageniehome.co.uk and see if it is that scheme. If it is, it is certainly a real scheme but obviously look into it carefully.