RENT TO BUY - HOW IT WORKS.

In recent years the property market has changed beyond recognition, The buyers, sellers, agents and mortgage lenders all have changed priorities and goals and have had to adapt to the changes brought on us by the difficult economic situation we find ourselves in.

With the above in mind, several years ago we pioneered the rent to buy contract in the area. This type of contract is normal in Northern Europe and with an ever increasing percentage of out cliental coming from this area we encompassed this alternative purchasing option into our portfolio with the assistance of our first rate legal team.

This purchasing option is perfect for the seller and buyers. The seller has somebody in their property who wishes to purchase in the long term and who is also looking after it. The buyer has a pre-determined period in which to sell their house, raise funds or have a pension or investment mature.

The concept is very simple. If your chosen property accepts rent to buy the contract works in this fashion. Let’s say your dream home is 200.000€, all figures are examples only.

1. An initial deposit is agreed (normally 10% however this figure can be negotiable)
2. A monthly rental is agreed ( 600€ pcm + utilities and associated charges)
3. A contract duration is agreed (normally 11 or 18 months)
4. The contract begins.

If at the end of the contracted period the buyer completes on the sale of the house, all monies paid in rent and deposit are deducted from the agreed sales price.

If at the end of the contracted period the buyer does not complete, they forfeit any moneys paid in rental and deposit and the property remains on the market. The owners may however have the option of increasing the contract duration should all parties be in agreement.

If you see a property on our website that at present does not participate in this option please let us know and we can enquire with the owner on your behalf.