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Rent to Buy is a simple concept, which allows purchasers with limited deposits the opportunity to secure a property by way of initial short-term let and a subsequent option to purchase. Allowing you to make early steps into purchasing your new home.
There are essentially two main elements to the scheme; a shorthold tenancy agreement for between 6 months and 2 years as you would normally on a rental agreement, and then a linked option to purchase at an agreed figure.
A separate deposit of an amount (given on request as will differ on individual developments) for the option to purchase is paid to secure the option and this subsequently forms part of the purchase payment. If the option to purchase is not exercised, then this deposit is non-returnable.
Vendors have the option to credit money paid by way of rental, which may then be used by the tenant/purchaser as funds to assist in the subsequent purchase of that property.
The responsibility for securing mortgage funding remains with the tenant/purchaser at all times and it is recommended that independent financial advice is taken in this respect. | 
