Rent to buy
Foundation Homes understand how difficult it is to get a foot on the property ladder and how hard it is to save for a deposit when paying a market rent.
Our Rent to Buy offer is designed so people can rent the home that they want to buy, at less than market rent, using the discount on their rent to save for a deposit.
The Rent to Buy offer is currently only available on our Park Street (Harrington Row) development.
Our promise to you
- A professional ethical landlord and agent;
- A new home;
- Rents set at 80% of market rent
- Option of buying the home you rent (terms and conditions apply)
- No risk of your landlord (us) selling your home without you having the first option to buy it.
Who is Rent to Buy for?
Our Rent to Buy homes are for people who:
- don’t already own a home;
- live or work within Liverpool (Liverpool being within the boundary of Liverpool City Council);
- are able to rent a home in the UK;
- want to own their home; and
- can afford to pay a discounted rent and also save for a deposit
Rent to Buy is for people who will be first time buyers, but could also be someone who used to own a home but is now returning to the housing market, for instance after a relationship breakdown.
Who isn’t Rent to Buy for?
Rent to Buy isn’t for people who already own a home or could buy one straight away without any help. You may also not qualify if you’re in breach of your current tenancy agreement or have adverse credit ratings.
How does it work?
Find a Foundations Rent to Buy home you like and then follow the process below:
Complete the applicationStep 1
Provide information requested by Foundations or our reference agency (including proof of identity, address, payslips).Step 2
Get accepted as being eligible and able to afford Rent to BuyStep 3
Pay your reservation deposit (1 week’s rent) to hold the property (this will hold the property and subsequently added to your deposit).Step 4
48 hours before you move in pay the rest of your one month deposit and first month rent.Step 5
Move in within 21 days of being acceptedStep 6
Rent the property at 20% less than market rent on a standard Assured Shorthold Tenancy (AST), normally a 12-month fixed term.Step 7
Use the reduced rent as an opportunity to save towards a deposit.Step 8
We’d expect it could take around five years to save for a deposit, but when you’re ready to buy talk to us about buying your home.Step 9
Use the deposit you’ve saved and a mortgage to buy your homeStep 10
What we need from you
- Completed Rent to Buy application form and any supported information requested including by our reference agency.
- A week’s rent deposit to hold the property and whilst we undertake reference checks
- One month deposit 48-hours before moving in (we’ll secure this in a government backed Deposit Protection Scheme)
- For you to be a good tenant and pay your rent on time
- During your tenancy meet with us before the end of the fixed-term to share how saving towards a deposit is coming along.
- Buy the property at the value at the time (terms and conditions apply)
No unfair fees. Friendly assistance at each step.
Important to note
- When you rent a Rent to Buy home from Foundations, we hope you go on and buy the same property, although there is no legal commitment for you to buy or Foundations to sell.
- You are expected to use the opportunity presented by the reduced rent to save for a deposit. We may not renew the tenancy agreement at the end of its term, if it seems you’re not saving sufficiently towards a deposit.
- There are certain situations that even if you want to buy, we may not be able to sell you the home you rent. This includes in the first 12-months letting the house to you.
- We don’t know what will happen to property values in the future but if the value of the property has fallen below what our minimum expectation is we may not be able to sell to you at that point (we’ll let you know what that minimum sale price is prior to your tenancy starting).
- We also won’t be able sell if you can’t secure a mortgage, or if you’re in rent arrears or in breach of your tenancy agreement for any other reasons.
- You should obtain your own legal advice and independent financial advice on renting or buying a home.