Rent to Own
An alternative solution for Landlords looking to exit, and Tenants looking to buy.
Made easy with Property Step.
Our system brings together a landlord seller and a tenant buyer, creating a win for both parties. Many landlords are unaware there is an alternative way to sell a property and equally, first time buyers are frustrated at the hurdles to buy their home. This system is used extensively in US and Australia since the 1970’s, whereby the purchase sales price and the length of time is agreed at the time the contract is created, thereby fixing the price in advance.
There is no rush, take your time reading and understanding the system, making sure its right for you, and the company you are dealing with is reputable. Be wary. Like everything, there are good and bad people, good and bad companies, good and bad practices.
Rent to Sell - Landlords looking to sell
Landlord SellersThe landlord has made the decision they want out, they want to sell and exit, disposing of the property. It could be a portfolio landlord, looking for a structured exit over a number of years. It could be they are fed up and frustrated. It could be a life issue like divorce, debt, relocation, death, job related. It could be a change in legislation, tax or investment strategy.
It could be a financial penalty selling now, like an early redemption charge on the mortgage or capital gains tax. It could be they want to sell when they hit retirement age sometime in the future. It could be the landlord wants to wash their hands with dealing with letting agents and tenants. It could be a landlord seller investor. It could be they like to use our system as an ethical way to sell, and give a leg up to a first time buyer. Whatever, the reason is, the landlord has decided to sell.
Using the property step system allows a planned structured disposal of their assets.
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An alternative way to sell
Traditionally, when selling a property, the tenants nearly always starts looking and give notice. The landlord then has an expensive void period having to cover all the bills, the property is then sat empty, or the property is cluttered, smelly or messy, or the tenant is obstructive with viewings. Its not an ideal process.
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An ethical solution
It can be very satisfying knowing you are helping someone make their first step on to the property ladder.
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A better sales price
It could be the landlord can only sell for a certain set price and the property market changes whereby at that particular time they cannot sell. It could be, they need a fast solution and do not want to give the property away at auction. This solution can be substantially more profitable.
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A faster solution
The paperwork can be completed very quickly, ensuring the landlord seller has an income quickly.
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A better investment strategy
Some property investors buy property, with a set return, they are not worried about whether they get the price they want now, or in 3 years time. Other investors, buy a property but do not want the hassle of letting, nor selling, as long as the margin is fixed. Our solution allows investors to invest with confidence.
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The Property Step way
One of the best solutions to sell a property for landlords.
Rent to Own - Tenants looking to buy
Tenant BuyersSome first time buyers and tenants cannot buy using the conventional route for lots of different reasons. They have been self-employed for a short period of time, they have a deposit but have not been in the UK for long enough. It could be they do not have a deposit, or have a bad credit rating. It could be they have found their ideal home and want to buy the property but the landlord is not ready to sell.
Using the property step system allows first time buyers to plan their future, to effectively ‘buy now, pay later’ to live in their home, to personalise their home, to have security in their home, planning for their future.
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Security of tenure
This allows people to live in their home, stay in their school, jobs and community with the knowledge of knowing the property they are living will be theirs at some point in the future, set out when the contract is created.
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Capital growth
The capital growth of the property is transferred from the landlord seller to the tenant buyer, this is because the purchase price is fixed at the outset when the contract is created. The landlord is happy to sell at the price that’s been agreed, in the timescale that’s been agreed. So, if the purchase price agreed was £200,000 and six later the market price is £280,000, you still get to buy at the £200,0000 and keep this equity.
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Refurbishment
The condition is looked after by the tenant buyer. In the case study N, case study J, the tenant buyer carried out extensive works, adding additional value to the property. In the case of property developers, they agree land using the same contract, subject to adding value to the land, like planning permission. It means you can spend money are the carpets you want knowing the property is as good as yours anyway.
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Bad credit
This will depend whether it’s a default or a CCJ, the amounts involved, over what period of time, normally this can be overcome once its older than two years. We can also link in your rental payments directly into your credit score, so every time you pay rent, it improves your credit. (and why not? It’s the biggest financial commitment you have) Sign up today for this:
Property Step in partnership with CreditLadder
FAQs
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What are the Risks involved for Landlord Sellers?
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Why Use Us - The Property Step
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What happens the sale does not proceed?
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What happens if we don’t proceed and buy the property?
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What happens if the tenant dies?
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What happens if the landlord dies?
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I'm ready to find my new home.
Agree a purchase price today and pay later.