Case studies | ZoWy Rent to Own property

Akmal's story.


Akmal approached ZoWy in 2018. He owned the property with a member of his family at that time. He wanted to have a space on his own, as at his home there are several members of his family.

There were two obstacles to deal with:


  • He had to get a second residential mortgage
  • He had small adverse credit history

Because of it, Rent-to-own was the perfect solution where he could pay a deposit today and secure the purchase in the future. In the meantime, he improved his credit score and saved enough money for the deposit. There was also another important clause in his contract, allowing Akmal to assign the purchase to someone else.

Akmal decided to buy a 2-bed flat for £92k with a rent payment of £750, out of which £150 was a capital towards his purchase. The deposit payment was £5k.

The assignment clause came very handily at the time for buying, as his wife applied to buy the property. That way Akmal did not pay any Stamp Duty as his wife was a First Time Buyer and also didn’t have to do anything with his existing mortgage which at that time was Buy-to-Let.

It is not over. Unfortunately, due to reasons outside of Akmal or landlord control, the property was deemed unmortgageable! There was no way that Akmal and his wife could buy the property by cash. Therefore, the alternative arrangement has been done with the landlord. The purchase was extended by 10 years(!!!) and the new price of £80k was agreed which was fixed for 10 years as well. The required additional deposit was £15k, which Akmal got saved up for the purchase anyway. The landlord was very happy getting the majority of his equity in a deposit now and little income from rent. Akmal was over the moon having a discounted price and 10 years to complete the purchase.

Akmal decided to buy the property in cash by saving around £6k a year. He plans to transfer £6k each year to the landlord. That way, the contract is also Sharia Law compliant.

Andy.


Andy is a senior manager in a manufacturing company. He just became a Manager of the new branch in Manchester. As he is looking to work in both London, where also his family resides and Manchester, he needs a home in Manchester. He approached banks, but it was proven difficult to get a mortgage for the property in Manchester. Relocation is not easy for lenders. Andy didn't want to rent. Rent-to-own really appealed to him. Luckily, he got a property that is local to his Manchester branch and also has the potential to extend and increase the value. He agreed £180k with rent £650, £100 capital repayable monthly and £10k deposit payable on day one.

The agreement was for 3 years, but Andy decided to complete the purchase after 2 years. At that time he had a £12400, deposit saved up and needed an additional £6k to have enough for the 10% deposit required by the lender. Luckily, over 2 years, he was able to save that amount. He is currently in the process of obtaining the mortgage and will complete it in the next few months.


Tanja.


Tanja approached us after sorting out her divorce and financial arrangement. She wanted a fresh new start - a new home for her and her kids. There was no way she could get a mortgage as she was out of the job for the time being and relied on her shrinking savings.

The large four-bedroom semi-detached house was attractive to Tanja, and she saw herself living in it and creating her own home. The price she paid was £220k with a monthly rent of £750. The deposit required by the landlord was larger due to her limited income level in future when it comes to buying the property. The agreed term of the deal was 3 years. A great Rent-to-own deal for Tanja.

The landlord kindly agreed to fix some issues with the property, including the roof. Tanja is currently settling down in her new home with her kids and starting a new position shortly. A brand new and hopefully better start for her life.

 

Make yourself comfortable and create your future with us!

SIGN UP NOW!
 

Sarah-Jayne.


SJ contacted us from Egypt. She moved there with the family some time ago and was planning to return to the UK. SJ didn't have enough money to buy by cash and with Egyptian income, she was unable to get a mortgage. She chose Manchester as her UK destination. The terms have been agreed for a refurbished two-bed end of the terraced cottage - purchase price of £180k, monthly rent of £600 plus £100 repayment on top of it for a fully refurbished 2-bed semi. The agreement was for 3 years with a £20k deposit.

Life can sometimes change everyone's plan. It was the case with SJ who got a great job offer in South England. She had to relocate. The landlord, even though subletting is not permitted, kindly agreed to it. The monthly rent was nearly enough to cover her monthly payments to the landlord. However, due to SJ relocation, she didn't need the property and was looking for the right solution. In the meantime, she bought a residential property near where she works.

Yet again life surprised her and her daughter decided to finish her higher education and settle down in Manchester. She is going to move to the property very shortly. The contract was also amended, so her daughter can legally buy the property. The contract was also extended by an additional year to allow her to graduate and get a well-paid job. The landlord was happy to extend the contract subject to an additional £5k deposit which was paid.

Life can change, but with flexible arrangements and a helpful company, it doesn’t have to be an issue.

Vinnie.


Vinnie is a sound guy. You love him and his positive attitude from the minute you see him. Vinnie is motivated to get on the property ladder. He is working hard to save money towards the purchase and also to have sufficient income for the mortgage.

But - he is priced out where he lives. Milton Keynes works great for his job travelling up and down M1 but stops him from owning his place. Even with his modest income and decent credit history, he silly couldn't do it. Rent-to-own and relocating seem to be the only sensible option.

Vinnie saw the property which was available in Corby and managed to have a viewing there. However, with the number of interested people, he missed it by a few hours… He was very sad about it, as his work duties prevented him from making that phone call and email earlier. We agreed to be in touch with the very next property for him. And it couldn't come soon enough when he had a 2bed semi-detached property available in Coventry. It was not only closer to M1 but also a cheaper and generally better quality of living. Vinnie was over the moon and this time booked the property while having a viewing. He learned the lesson of booking the property asap.

The price was £167k and the deposit was £15k. The term agreed was 2 years and a monthly payment of just over £800, including over £150 going towards the purchase price.

Currently, Vinnie settled down at the property. He is working towards improving his credit history and is saving more money towards the deposit. He is definitely on the right track. Rent-to-own was the right shout. It is also likely that the house will be worth more than the agreed price. Good for Vinnie!

Akmal's story.

Akmal approached ZoWy in 2018. He owned the property with a member of his family at that time. He wanted to have a space on his own, as at his home there are several members of his family.

There were two obstacles to deal with:


  • He had to get a second residential mortgage
  • He had small adverse credit history

Because of it, Rent-to-own was the perfect solution where he could pay a deposit today and secure the purchase in the future. In the meantime, he improved his credit score and saved enough money for the deposit. There was also another important clause in his contract, allowing Akmal to assign the purchase to someone else.

Akmal decided to buy a 2-bed flat for £92k with a rent payment of £750, out of which £150 was a capital towards his purchase. The deposit payment was £5k.

The assignment clause came very handily at the time for buying, as his wife applied to buy the property. That way Akmal did not pay any Stamp Duty as his wife was a First Time Buyer and also didn’t have to do anything with his existing mortgage which at that time was Buy-to-Let.

It is not over. Unfortunately, due to reasons outside of Akmal or landlord control, the property was deemed unmortgageable! There was no way that Akmal and his wife could buy the property by cash. Therefore, the alternative arrangement has been done with the landlord. The purchase was extended by 10 years(!!!) and the new price of £80k was agreed which was fixed for 10 years as well. The required additional deposit was £15k, which Akmal got saved up for the purchase anyway. The landlord was very happy getting the majority of his equity in a deposit now and little income from rent. Akmal was over the moon having a discounted price and 10 years to complete the purchase.

Akmal decided to buy the property in cash by saving around £6k a year. He plans to transfer £6k each year to the landlord. That way, the contract is also Sharia Law compliant.

Andy story.

Andy is a senior manager in a manufacturing company. He just became a Manager of the new branch in Manchester. As he is looking to work in both London, where also his family resides and Manchester, he needs a home in Manchester. He approached banks, but it was proven difficult to get a mortgage for the property in Manchester. Relocation is not easy for lenders. Andy didn't want to rent. Rent-to-own really appealed to him. Luckily, he got a property that is local to his Manchester branch and also has the potential to extend and increase the value. He agreed £180k with rent £650, £100 capital repayable monthly and £10k deposit payable on day one.

The agreement was for 3 years, but Andy decided to complete the purchase after 2 years. At that time he had a £12400, deposit saved up and needed an additional £6k to have enough for the 10% deposit required by the lender. Luckily, over 2 years, he was able to save that amount. He is currently in the process of obtaining the mortgage and will complete it in the next few months.


Tanja story.

Tanja approached us after sorting out her divorce and financial arrangement. She wanted a fresh new start - a new home for her and her kids. There was no way she could get a mortgage as she was out of the job for the time being and relied on her shrinking savings.

The large four-bedroom semi-detached house was attractive to Tanja, and she saw herself living in it and creating her own home. The price she paid was £220k with a monthly rent of £750. The deposit required by the landlord was larger due to her limited income level in future when it comes to buying the property. The agreed term of the deal was 3 years. A great Rent-to-own deal for Tanja.

The landlord kindly agreed to fix some issues with the property, including the roof. Tanja is currently settling down in her new home with her kids and starting a new position shortly. A brand new and hopefully better start for her life.

 

Make yourself comfortable and create your future with us!

SIGN UP NOW!
 

Sarah-Jayne.

SJ contacted us from Egypt. She moved there with the family some time ago and was planning to return to the UK. SJ didn't have enough money to buy by cash and with Egyptian income, she was unable to get a mortgage. She chose Manchester as her UK destination. The terms have been agreed for a refurbished two-bed end of the terraced cottage - purchase price of £180k, monthly rent of £600 plus £100 repayment on top of it for a fully refurbished 2-bed semi. The agreement was for 3 years with a £20k deposit.

Life can sometimes change everyone's plan. It was the case with SJ who got a great job offer in South England. She had to relocate. The landlord, even though subletting is not permitted, kindly agreed to it. The monthly rent was nearly enough to cover her monthly payments to the landlord. However, due to SJ relocation, she didn't need the property and was looking for the right solution. In the meantime, she bought a residential property near where she works.

Yet again life surprised her and her daughter decided to finish her higher education and settle down in Manchester. She is going to move to the property very shortly. The contract was also amended, so her daughter can legally buy the property. The contract was also extended by an additional year to allow her to graduate and get a well-paid job. The landlord was happy to extend the contract subject to an additional £5k deposit which was paid.

Life can change, but with flexible arrangements and a helpful company, it doesn’t have to be an issue.

Vinnie story.

Vinnie is a sound guy. You love him and his positive attitude from the minute you see him. Vinnie is motivated to get on the property ladder. He is working hard to save money towards the purchase and also to have sufficient income for the mortgage.

But - he is priced out where he lives. Milton Keynes works great for his job travelling up and down M1 but stops him from owning his place. Even with his modest income and decent credit history, he silly couldn't do it. Rent-to-own and relocating seem to be the only sensible option.

Vinnie saw the property which was available in Corby and managed to have a viewing there. However, with the number of interested people, he missed it by a few hours… He was very sad about it, as his work duties prevented him from making that phone call and email earlier. We agreed to be in touch with the very next property for him. And it couldn't come soon enough when he had a 2bed semi-detached property available in Coventry. It was not only closer to M1 but also a cheaper and generally better quality of living. Vinnie was over the moon and this time booked the property while having a viewing. He learned the lesson of booking the property asap.

The price was £167k and the deposit was £15k. The term agreed was 2 years and a monthly payment of just over £800, including over £150 going towards the purchase price.

Currently, Vinnie settled down at the property. He is working towards improving his credit history and is saving more money towards the deposit. He is definitely on the right track. Rent-to-own was the right shout. It is also likely that the house will be worth more than the agreed price. Good for Vinnie!

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