Rent to buy
The believe housing Rent to Buy scheme is designed to help people who can’t currently afford to buy or rent suitable accommodation on the open market, providing them with the future opportunity of owning their own home.
what is rent to buy?
Rent to Buy is a government scheme that aims to help people in England step on to the housing ladder by offering affordable homes at a 20% discount below market rent for five years.
After five years, you can purchase the property for the amount provided upon valuation if you have been able to save the necessary deposit and secure a mortgage. Alternatively, you can continue to rent your home from believe housing until the time is right to complete the purchase.
- You get to live in a brand-new home and make it your own whilst saving towards purchasing the property.
- Your rent on the property will be 20% less than market rate.
- We can provide financial advice to help you become a homeowner in five5 years.
- First refusal when the property becomes available to buy.
- Five year lease time allows you to save money and get your finances in order before you apply for a mortgage.
- You must be at least 18 years old at the beginning of your tenancy.
- You cannot have previously owned a home, unless you are returning to the market following a relationship breakdown.
- You cannot currently own another home or be on the deeds of another property.
- You must be working with proof of employment.
- You are not currently in a financial position to purchase a house.
- You have good credit history with no outstanding credit issues including county court judgements (CCJs) or unsatisfied defaults.
- You were born in the UK with UK citizenship or have the ‘Right to Rent’ in the UK.
- You don’t have any previous tenancy history or behaviour that would normally have barred you from registering on the Durham County housing register, Durham Key Options
Applicants applying for a Rent to Buy property, who meet the initial criteria will be required to undergo financial and statutory checks, which will be carried out by our team.
Checks include:
- Proof of current employment and monthly household income.
- Valid proof of your current address and photographic ID to perform ‘Right to Rent’ and fraud prevention checks.
- A credit check to confirm your credit score and eligibility for a mortgage within the five year period – please note applications will be terminated if you have bankruptcy issues or CCJs within the last three years.
- A reference from your current landlord or lettings agency (if applicable).
Whilst renting the property, you will be responsible for:
- Making regular rent payments
- All utility payments (gas, electric, water) for the property from the day you move in.
- Council Tax payments
- Wi-Fi, landline and any TV subscription services payments.
If you decide to purchase the property after five5 years, you will be responsible for:
- Your property valuation
- Mortgage deposit (where applicable)
- Mortgage arrangement fees (where applicable)
- Regular mortgage payments (where applicable)
- Solicitor fees
- Stamp duty (where applicable).
You only need a deposit if you decide to purchase your home, this will be for your mortgage. You do not need a deposit for your Rent to Buy application.
If your financial circumstances change and you are no longer able to afford your Rent to Buy payments, you must inform us at the earliest opportunity.
Rent to Buy allows you to rent a property from believe housing at a 20% discount for five years while you save for a deposit to purchase your property.
Shared ownership allows you to purchase a share of the property, for example 25%, and pay rent on the outstanding share.