What is Rent to Buy?

Rent to Buy offers people the chance to rent a home at a lower rent, helping them save for a deposit over time to purchase the home.

Rent to Buy allows you to rent your home at a 20% percent discount in any of our selected areas and then own it via Shared Ownership after two years. After the 2 years you can choose to own your home through Shared Ownership.

We understand how difficult it can be to get a foot on the property ladder. Too often people are forced into completely changing their lifestyle or making big sacrifices, like moving away from family, friends and work, just to be able to save for a deposit to buy their own home. 

Am I eligible for Rent to Buy?

Rent to Buy allows you to rent your home at a 20% percent discount, then own it via Shared Ownership after two years.

Here is what you need to be eligible for the rent to buy scheme:

• My household income is not more than £90,000 a year
• I don’t own a property already
• I am willing to agree with you a sustainable amount I am able to save every month whilst I am renting my new home
• I can afford the monthly Shared Ownership costs at the moment, but don’t currently have a large enough deposit to buy through Shared Ownership or outright
• I am able to show that I can obtain a mortgage based on my current credit report
• I am able to pass money laundering and fraud checks
• I am hoping to buy a home big enough to suit my current needs
• I am able to get a good tenancy reference from my current landlord

Speak to a Sales advisor on Enquiries@Peabodynewhomes.co.uk for more information regarding eligibility and affordability criteria.

Buy your home with Shared Ownership

Once the initial rental period is over, you should be in a position to buy your home through Shared Ownership, using a combination of the deposit you have saved and a mortgage arranged by yourself.

Owning a Shared Ownership home, means you buy a share in the property and pay rent on the share you don’t own. You can buy as little as 25% or as much as 75% of the value of the property initially, and you’ll need totake out a mortgage to do this. Although you may be officially ‘renting’ a proportion of the home, legally you become an owner-occupier, not a part tenant.

Shared Ownership is a part buy/part rent scheme that makes it possible for first time buyers to purchase a property that otherwise would not have been affordable. It is a government-backed scheme launched in 2006 for people who are unable to afford to buy a home at full market value.