subject: Rent To Own [print this page] Rent to own a house is a major issue in London. Most London citizens cannot afford to buy a house and yet many sellers are trying to sell house fast. According to a recent analysis done by the London government, it has been discovered that ninety per cent of families cannot afford to purchase a suitable house. The crisis has been brought about by the fact that London banks are not lending to businesses or household. Mortgage is also not an option when it comes to buy a house in London. Mortgage lenders have reduced the loan-to-value ratios, that is, the amount borrowed in relation to the value of the house.
A team of London-based experts who specialize in helping people to sell house fast, have come up with solutions that will assist most London families to be able to purchase their dream house without having to go to the bank for finances or to the mortgage lenders. One of the solutions is the rent to own project which is fast becoming a reality in London. Most people in London pay rent which is not credited towards owning the house. The rent to own project can now make your hard earned money count towards building your financial future.
The rent to own program allows one to rent the house for an agreed period of time before deciding if they would like to buy it. This is how the program works ;
One first goes through a list of houses and chooses the one that suits them best.
One pays the Get Started Money which is a minimum of three per cent of the house purchase price. The Get Started Money can also be referred to as the deposit money.
After paying the Get Started Money one can now rent the house for an agreed period of time and part of the weekly rent is credited towards the price of the house.
One can then choose to buy the house at any time during the agreed period, the house price is fixed.
The purpose of the rent to own project is to help one to save a deposit towards owning a house of own. It gives someone a chance to get to see if they like the house, the neighborhood and the convenience to access social amenities. Rent to own project also gives and flexibility as they are not committed to buying the house. The house price is fixed and one is not affected by any increase in the market prices. Take for example, one decides to buy a house at 180,000 within a given time frame and then the house increases in value to 190,000 and thus one will not be affected by the price change and hence will still purchase the house at 180,000 and you get to keep the increase in value.
The rent to own project is established for people who are new in London, people who cannot afford to put down a large amount of deposit as required by the bank and also people who cannot afford to get a mortgage from mortgage lenders. It also helps the sellers who sometimes get stuck and are unable to sell house fast in London.
To be able to participate in the rent to own project one needs to have qualified in the following areas; have a job or a stable source of income, have the required Get Started Money that is required for the house they desire to purchase and to have the ability to move into the house of your choose as soon as possible.
