First time buyers

Many young professionals are finding it impossible to get their first step on the property ladder in a practical and affordable way.

2 Rent 2 Buy Ltd. will benefit people in Edinburgh and throughout Scotland where property prices have risen beyond the reach of first-time buyers it will enable them to get a foot on the first rung of the property ladder.

Many young professionals have the disposable income to afford a mortgage but lack the financial funds to secure the required deposit. In Edinburgh the average deposit required by a first time buyer is £20,000* which is out of reach of most young working people.
“ The percentage of property sales to first time buyers has fallen to just 13% the lowest level in recent memory and there is little prospect it can increase while prices keep rising”. (National Association of Estate Agents)

Lease Options

A Lease Option refers to a tenant having a legal agreement with another party that allows them to lease a property for a fixed term with an option to purchase that same property at the end of the term with a price agreed at the beginning of the contract.

The aim is to allow this segment of the population the chance to rent a home and after three years to purchase it. Those who cannot afford to buy a home usually have to rent but the attraction of this method is that they can “try before they buy” and move into the home of their dreams.

They then have the chance to save for the deposit and at the end of three years have the option whether to go ahead or not. This is a concept that encourages tenants to choose and then create their own home even before they become property owners themselves. We believe Lease Options goes a long way to solving the first-time-buyers crisis.

If the tenant does not want to buy, or cannot, within the agreed timescale, the tenant has to leave the property and the property reverts to the landlord, unencumbered by the tenant’s option or share in the equity. The property can be offered to a new Tenant/Buyer, rented out in the traditional way or sold.

Those people who are forced to rent for whatever reason often feel that they are spending money that sees a nil return. This method will revolutionize the property market. For far too long we have been set in traditional ways to help people become homeowners. 2 Rent 2 Buy Ltd. Lease Options is the way ahead.

Sandwich Lease Options

This involves bringing tenant and landlord together and creating what is regarded as a Sandwich Lease Option. 2 Rent 2 Buy secures a landlord and creates an option where the Company agrees to lease his property for a fixed term of three to five years with an option to buy. The Company then finds a suitable first time buyer who wishes to rent the property for three to five years and have an option to purchase it at the end. If the tenant decides to exercise the option after three years then 2 Rent 2 Buy exercises its option with the landlord. 2 Rent 2 Buy makes its profit on the difference between the price agreed with the Landlord at the beginning of the lease and the tenant.

*Source - Halifax report, Sept 2004.