Rent to own is a combination of renting and buying | ZoWy

What is Rent to Own?

It is a combination of renting and buying. You transfer the deposit today, rent for few years and complete the purchase when you are ready. Everything is legally binding and with affordable monthly payments. The mortgage is only required just before you complete it! If you are unable to get a mortgage and buy your home now - it is something for you.


Rent to Own basics

Rent to Own is a scheme design to make a smooth transition from renting to owning the property. It is a program where within the same agreement tenants can become homeowners. The term of the agreement varies by the property but is typically between 2-5 years with the flexibility to extend the term subject to circumstances. The tenant can opt-out of buying the property but at that time the deposit will be lost. To avoid losing the deposit there is an option to sell the property by the tenant at the open market.

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What is
Rent to Own?

It is a combination of renting and buying. You transfer the deposit today, rent for few years and complete the purchase when you are ready. Everything is legally binding and with affordable monthly payments. The mortgage is only required just before you complete it! If you are unable to get a mortgage and buy your home now - it is something for you.


Rent to Own basics

Rent to Own is a scheme design to make a smooth transition from renting to owning the property. It is a program where within the same agreement tenants can become homeowners. The term of the agreement varies by the property but is typically between 2-5 years with the flexibility to extend the term subject to circumstances. The tenant can opt-out of buying the property but at that time the deposit will be lost. To avoid losing the deposit there is an option to sell the property by the tenant at the open market.

Make yourself comfortable and create your future with us!

SIGN UP NOW!

How does Rent to Own work?

  • • Homes are made available to rent with a shorthold tenancy and the option to buy.
  • • Tenant-buyer pays deposit before signing the agreement and moving in.
  • • Deposit varies by the property but typically is around 10% of the purchase price.
  • • On top of monthly rent, there is a capital element that goes towards the deposit.
  • • The capital element is around 20% of the monthly rent.
  • • Typically the term lasts from 2 to 5 years.
  • • The purchase price is set before the start of the lease.
  • • The purchase of the property happens towards the end of the lease. It can be done through the mortgage or by cash.
  • • In certain circumstances like a market crash or pandemic, which are not dependent on the tenant-buyer the term can be extended.

You are eligible for Rent-to-Own if;

  • • You are unable to get a mortgage at the moment for whatever reason: income, bad credit history, immigration status, relocation etc.
  • • You will be in a position to buy a home either with a mortgage or by cash towards the end of the agreement.
  • • You have a deposit available.
  • • You are ready to commit to the purchase.

We aim to prioritise families with kids to a single applicant. However, please make sure you register your interest early. There is most of the time the shortage of the properties and potential tenant-buyers are served by the date of the registration.

What property can I buy? You can ONLY buy the properties available on the ZoWy website. All properties on the portal are accepted by the sellers for Rent-to-own with legal due diligence completed.

How does Rent-to-Own work?

  • • Homes are made available to rent with a shorthold tenancy and the option to buy.
  • • Tenant-buyer pays deposit before signing the agreement and moving in.
  • • Deposit varies by the property but typically is around 10% of the purchase price.
  • • On top of monthly rent, there is a capital element that goes towards the deposit.
  • • The capital element is around 20% of the monthly rent.
  • • Typically the term lasts from 2 to 5 years.
  • • The purchase price is set before the start of the lease.
  • • The purchase of the property happens towards the end of the lease. It can be done through the mortgage or by cash.
  • • In certain circumstances like a market crash or pandemic, which are not dependent on the tenant-buyer the term can be extended.

You are eligible for Rent to Own if;

  • • You are unable to get a mortgage at the moment for whatever reason: income, bad credit history, immigration status, relocation etc.
  • • You will be in a position to buy a home either with a mortgage or by cash towards the end of the agreement.
  • • You have a deposit available.
  • • You are ready to commit to the purchase.

We aim to prioritise families with kids to a single applicant. However, please make sure you register your interest early. There is most of the time the shortage of the properties and potential tenant-buyers are served by the date of the registration.

What property can I buy? You can ONLY buy the properties available on the ZoWy website. All properties on the portal are accepted by the sellers for Rent to Own with legal due diligence completed.

Should I do it?


If you are eligible for Rent to Own, it then depends on the property and if you like it. The properties are varied but you also need to pay attention to all financial and legal aspects of Rent to Own. Although it is a great way to get on the property ladder it might not work for you. It is your decision and you need to make sure it is beneficial to you.

One of the advantages of Rent to Own is that it may give you access to properties that you otherwise wouldn’t be able to afford at the moment. Because we look at your position at the end of the agreement you can afford a better home now.

To make sure you are in a position to buy the property we advise you to save more money towards the purchase. The disadvantage is that mortgage criteria and lenders Loan-to-Value change and you want to be sure you can buy when the time comes. We will contact you with the authorised mortgage advisor who will advise you if you are likely to get a mortgage in future and what is the maximum you can borrow in future. That will determine your maximum property price for Rent to Own.

Don’t forget there are the costs of buying a home to factor in too.


How do I apply?

  • • First, you must register with ZoWy. They will assess your application and tell you if you are eligible and add you to their database. They will also contact you directly if a suitable property becomes available
  • • You should also be proactive and browse for properties on the ZoWy website.
  • • Find a property you like and contact ZoWy.


It also can be hard to navigate around specific terms and nuances. In order to help you stay informed and prepared, we have assembled and curated this unique knowledge base. You are welcome!


 

Are you interested? Have questions?
Drop us a message or talk to us on Facebook

Should I do it?


If you are eligible for Rent to Own, it then depends on the property and if you like it. The properties are varied but you also need to pay attention to all financial and legal aspects of Rent to Own. Although it is a great way to get on the property ladder it might not work for you. It is your decision and you need to make sure it is beneficial to you.

One of the advantages of Rent to Own is that it may give you access to properties that you otherwise wouldn’t be able to afford at the moment. Because we look at your position at the end of the agreement you can afford a better home now.

To make sure you are in a position to buy the property we advise you to save more money towards the purchase. The disadvantage is that mortgage criteria and lenders Loan-to-Value change and you want to be sure you can buy when the time comes. We will contact you with the authorised mortgage advisor who will advise you if you are likely to get a mortgage in future and what is the maximum you can borrow in future. That will determine your maximum property price for Rent to Own.

Don’t forget there are the costs of buying a home to factor in too.

How do I apply?

  • • First, you must register with ZoWy. They will assess your application and tell you if you are eligible and add you to their database. They will also contact you directly if a suitable property becomes available
  • • You should also be proactive and browse for properties on the ZoWy website.
  • • Find a property you like and contact ZoWy.


It also can be hard to navigate around specific terms and nuances. In order to help you stay informed and prepared, we have assembled and curated this unique knowledge base. You are welcome!


Are you interested?
Have questions?
Drop us a message or talk to us on Facebook
Sign-up