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Frequently Asked Questions - All FAQs
It’s important that every eventuality is covered.
If you die, any surviving seller or their estate will inherit the property and the existing agreement. It is unlikely to affect the sale of the property unless any lender insisted upon the disposal. In which case the deposit would be returned to the tenant.
If the tenant dies, the agreement will continue to be completed by the last surviving tenant. Upon the death of the last surviving tenant, all payments held in the account will be repaid to the tenant buyer(s) respective estates in equal shares.
Rent to Buy works in a similar way to the traditional way of buying a house.
When you buy a house you “exchange contracts”. At this point both sides are legally committed to the sale and purchase. A “completion date” is agreed and this is when you become the legal owner and move in.
With Rent to Buy you exchange contracts in the usual way but completion is extended to take place up to 10 years in the future.
Once exchange of contracts has taken place the tenant can move into the property straight away. Both parties have entered into a legal agreement and you are committed to selling the house at the fixed price. You cannot change your mind or revise the price so the tenant has the security of knowing they are on the first step to homeownership.
Your solicitor/lawyer will guide you through the process and we can provide you with an experienced Rent to Buy solicitor/lawyer who will independently represent you.
No. You have entered into a legally binding agreement to sell the property at the agreed price and you cannot change your mind. Under the legal agreement the price is 100% fixed.
The house is now the tenant’s home and we want you to encourage them to treat it that way. They are free to decorate and improve it however you wish and they will benefit from any increases in the value of the property as a result of any improvements they have made. You are responsible for carrying out an annual gas safety check and buildings insurance only saving you a substantial amount of money on maintenance repairs.
You are responsible for organising and paying for the house building insurance. If the tenant needs to make a claim on the building insurance, it will be subject to them paying your insurance excess. It is the tenant’s responsibility to organise and pay for contents insurance for their own possessions.
In the same way as if they had a mortgage or were simply renting in the usual way, it is their responsibility to pay the rent and monthly deposit top up. If they fail to do so their home is at risk.
If they experience difficulties in paying we would contact them immediately to agree a proposal for payment. If they default on payment their tenancy may be terminated when they will be lose the right to purchase the property and deposit will be returned to you in full.
We do allow tenants to keep house trained pets in the property.
Individuals or Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care.