Rent to Own
Rent to Own is a scheme to help people who can't buy a home now but want to buy their own home in the future. The scheme is operated by OwnCo Homes (a subsidiary of Co-Ownership).
A Rent to Own tenant
A Rent to Own tenant doesn't own their home. They are a tenant with a tenancy agreement. Co-Ownership's subsidiary, OwnCo Homes Limited, buys the property selected by tenant and rents it to them for a market rent for up to three years. The tenant has an option to buy any time after the end of the first year.
Qualifying for Rent to Own
How do I Rent to Own sets out the conditions you need to meet to become a Rent to Own tenant and should be read before making an application. There will be a non-refundable assessment fee of £100 on application.
At the start of the tenancy
You pay a tenancy deposit (equal to one month’s rent) plus a down payment of £2,500.
During the tenancy
You pay a market rent, the same amount every month for up to three years,
with an option to buy any time after the first year.
At the end of the tenancy
You get your down payment back, your holding fee and £20.00 refund for every £100 paid in rent. This should work out at around five per cent of the property value at that time, to use towards a deposit against a mortgage.