Landlord Seller

A tenant buyer agreement can be the bridge between renting and homeownership, helping tenants prepare for being a homeowner. This agreement is a legally binding contract that allows tenants to be able to plan, and the option to purchase the property within a specified time frame. They are not a normal tenant, they are going to look after and maintain the property like a normal homeowner.

A landlord seller is a person who has entered into a legal agreement to lease the property to a tenant buyer, coupled with giving this tenant buyer the option to purchase the property at an agreed price, within an agreed timescale.

Normally, its market value, but not always.

The concept of rent to own is nothing new and has been around for centuries in one way or another, we have just put a modern spin on it to help vendors and buyers in the purchase and selling of property. Especially in this economic climate.

Having dealt with over 2,500 tenancies and selling over half a billion pounds worth of property, we are not in the property business, so much as we are in the people business and everyone is different, with different frustrations, worries, problems, lives, incomes, risk appetite, values, ethics, morals, understanding, expectations, aspirations, ambitions, motivations, knowledge. Our service works because it's tailored to the individual circumstance, needs and aspirations. Our system is tailored to the person.

At the Property Step we have a good understanding of construction, costs, valuing properties, timescales, common and uncommon problems but also we are professionals in letting and property management. We become your tenant buyer, so you have one key contact and we take on the responsiblity and liablity for the legislation and any penalties involved coupled with lettings and property management. We do this by fully taking over the property and property management.

Although our landlord sellers can log in at any time on to their online property file and see the required certificates at any time (EICR, GSC, Inventory, Meter readings, how to rent, deposit certificates, etc), maintenance issue logs, response times, and our KPI’s. We take property management seriously with structured procedures, systemisation and customer feedback and satisfaction, at the very heart of what we do.

As we are fully liable for the property and property management, we guarantee the rent to the landlord seller. This allows the landlord seller peace of mind and to move on with their lives knowing the property is professionally looked after until it’s sold. We are the tenant buyer.

Many of our landlord sellers want nothing more to do with lettings agents or tenants and the legislation surrounding lettings. We take this away and use our own funds to do necessary works and ongoing maintenance to the property. We know what the market wants, the quality needed, the process and speed required, and the legislation involved and surrounding the processes.

We have a property toolbox for different situations, different properties in different locations, demands and prices which can ultimately change which strategy is used. Ideally, we make the property attractive in the rental market and then couple this with finding a tenant buyer. Essentially, our model provides an alternative solution allowing first time buyers to live in their own home, whilst saving for a deposit or dealing with any buying issues they have outstanding. However, it could be, for example in the case study J, the property is unmortgageable and unsaleable, and if a buyer wants to buy, its likely we will sell.

This contract is like an ‘exchange of contracts’ its legally binding and having been around since Oliver Cromwell, its well established. Once the sale price, rent and timescale has been agreed and contracts are signed, you cannot withdraw. You have given the legal right for the tenant buyer to exercise the option to purchase the property at the pre-agreed set price in the pre-agreed timescale, and rightly so. We are not going to spend our money on a property we don't own being fully liable and responsible for the rent, the property and the process without the option to purchase during the option period.

We have the knowledge, skillset and expertise.

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We are the tenant buyer for the landlord. This is for various reasons, to understand the system, to overcome risks and to control the process.

When we first started this system we were amazed at how many people want to own their home but for various reasons are not able to do so at this particular moment in time.

The great thing about this system is it has mulitple profiles. Investors use this system due to giving a much better net profit over a set period of time, rather than just a quick sale.

Profile A – The legislation changes, and the Landlord doesn’t have enough funds, experience or interest, in complying, but is not ready to sell. See Case Study N

Profile B – A seller who is looking to move on with their lives, but for whatever reason, can’t sell the property at this exact time, for the price required, in the current market.

Profile C – A landlord who has re-mortgaged on a fixed rate mortgage. They are fed up and had enough of dealing with letting agents and tenants and want out. The problem is, they have a high early redemption penalty if they pay off their mortgage early. They use the property step system to arrange the sale at a future date, outside of this penalty period.

Profile D – A seller who cannot sell on the open market. This could be market conditions or demand has changed, or it could be the property is unmortgageable or unsaleable.

Profile E – A seller who does not want their property empty whilst they sell and chose a better alternative solution. They receive rent up until the day the property is sold, reducing the void period and having an empty property.

Profile F – An investor. This system gives a much better net profit over a set period of time with none of the hassles of lettings and property management. Other investors and properpty traders wants to buy and sell, making a set return and price. They want nothing to do with lettings and property management and complete a sale with the set margin in place.

Profile G – An ethical seller who likes the philosophy, mission and vision of the property step system..

Profile H – A homeowner in financial difficulty. See Case study J

As a landlord seller, the name on the mortgage does not alter, so the landlord seller remains fully liable for paying the mortgage. This is why we derisk for the landlord seller and guarantee the rent. We can pay this directly to the mortgage lender (as was the case with an elderly chap going into a nursing home, See case study d, or directly to the landlord seller.

In a rising or falling market, the property value can increase or decrease. The landlord seller is contractually bound to sell the property for the price agreed within the period stated. If the period expires the landlord seller and tenant buyer can re-enter negotiations. This is one of the benefits and risks, for a tenant buyer.

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It is legal. The contracts have been around since Oliver Cromwell and is like an exchange of contracts, its legally binding on the landlord seller. The purchase price is fixed at the outset and cannot be altered without mutual agreement.

Both the Financial Conduct Authority (FCA) and Council of Mortgage Lenders warn against entering a lease with the option to purchase. The FCA regulates the retail ‘rent to own’ market ‘Buy now, pay later’, where credit and loans are involved, however, with the property rent to own system there is no credit or loans involved and therefore, this is not regulated.

We believe there is potential areas for malpractice and our hope is regulation will be forthcoming to ensure people are dealt with fairly, consistantly and ethically, working for all parties.

This is tailored to both parties, and flexible, but we normally look to set the contract between 1-20 years, although they can still be outside of this period, if all parties agree.

No. A tenancy agreement is between a landlord and tenant, normally short term, such as six months or monthly. Whereas this contract gives a buyer the right to purchase a property in the future, whilst paying the seller a monthly rent. The buyer will pay a consideration, an upfront fee to secure the right to buy. This agreement combines the legal contracts of the right to purchase with the lease into one document.

It is legal. The contracts have been around since Oliver Cromwell and is like an exchange of contracts, its legally binding on the landlord seller. The purchase price is fixed at the outset and cannot be altered without mutual agreement.

It is legal. The contracts have been around since Oliver Cromwell and is like an exchange of contracts, its legally binding on the landlord seller. The purchase price is fixed at the outset and cannot be altered without mutual agreement.

Both the Financial Conduct Authority (FCA) and Council of Mortgage Lenders warn against entering a lease with the option to purchase. The FCA regulates the retail ‘rent to own’ market ‘Buy now, pay later’, where credit and loans are involved, however, with the property rent to own system there is no credit or loans involved and therefore, this is not regulated.

We believe there is potential areas for malpractice and our hope is regulation will be forthcoming to ensure people are dealt with fairly, consistantly and ethically, working for all parties.