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Tenant Buyer Scheme

Tenant Buyer Scheme

Tenant Buyer Scheme

The Tenant Buyer process is incredibly simple. It allows you to rent your home initially whilst building up a deposit to purchase at a pre-agreed date in the future.

Follow these steps and you could be in your new home in no time

  • Complete the Tenant Buyer application form
  • We will review your application and carry out affordability and credit checks (we will notify you first)
  • If your application is approved and a suitable property is found, the contracts are signed. You pay your first month’s rent and the initial non-refundable ‘option to purchase’ fee*. This fee is usually between 3-5% of the purchase price
  • Move into your new home
  • Each month you pay your rent and a separate option ‘top-up’ fee*
  • When you are ready to buy your home, all the ‘option’ fees you have paid become your deposit (10% of the purchase price). You take out a mortgage for the rest (90%)
  • Congratulations you are the owner of your home

Example:

£350,000 Purchase Price - 5 Year Tenant Buyer Contract

  • 3% Option to Purchase fee* £10,400
  • Monthly Rent £1,250
  • Monthly Option top-up* £410 x 60 = £24,600
  • Total option fees paid £35,000
  • 90% mortgage £315,000

* Option to purchase & top up fees count towards your deposit but are non refundable should you choose not to complete the purchase of the property. Just as we are committed to making sure you can complete the purchase without fear of property owners pulling out – we also have to protect them and work with committed buyers. It is essential you are in a position to complete the purchase at the end of the contract, so all buying costs such as stamp duty, solicitor and brokers fees should be accounted for.

CHECK OUT OUR TENANT BUYER CALCULATOR

See what this might look like for you

Tenant Buyer Calculator

The rent and purchase price are agreed at the start and stay fixed for the whole contract term.

Don’t worry, completing the form doesn’t commit you to anything. We keep you on file and contact you when a property matching your criteria becomes available

Tenant Buyer Application Form

Prysm Property Limited is a company incorporated in England under company number 12768074. Information provided by Prysm Property Limited does not constitute investment advice and all individuals are asked to undertake professional, independent legal advice

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