RENT, SAVE, BUY
PAY LOWER RENT TO SAVE FOR A DEPOSIT We know that renting with all its very costly implications can make getting on the property ladder an impossible dream. But, with these renting opportunities including Rent to Buy and London Living Rent, it means you save at the same time as renting and eventually can get the keys to your own front door
LONDON LIVING RENT AND RENT TO BUY HOW IT WORKS Funded by the Mayor, the idea behind London Living Rent is to help people switch from renting to shared ownership. It is designed for people who want to build up their savings to eventually buy a home through shared ownership. London Living Rent offers affordable homes for private rent on shorthold tenancies for up to three years. Simply: Find a London Living Rent home that suits you and your needs Rent the home at a discount Save the discount for your deposit Buy shares in your home through shared ownership. Discounted rental contracts can be renewed, if needed, for up to 10 years after the launch of each scheme; during which time, you will be able to gradually build up your deposit. When you’re ready, you have the option to buy the home you’ve been renting (or
another eligible property) on a shared ownership basis. The good news about the scheme is that when you buy is flexible, and the housing association will support you to save during your rental stay, so you can buy at your own pace.
Can I move to an alternative London Living Rent apartment once my term has ended? You can’t move to an alternative if you’ve completed the stated London Living Rent term (usually five to 10 years). Must I save a minimum amount each month? You are the best judge of what amount is affordable for you to save each month. By renting through London Living Rent you benefit from a below-market rent so will have the ability to save based on the minimum income requirement for your London Living Rent home. The more you save, the quicker you will be able to raise the deposit required to buy your first home. RENT TO BUY Rent to Buy helps tenants in England save for a deposit to buy a home by offering properties at a discount. This is normally 20% below market rent.The scheme is available in England, apart from London. Properties in London are covered by a separate scheme called London Living Rent.
ANY QUESTIONS?
Do I qualify for London Living Rent? To qualify for London Living Rent you must meet all of the following criteria: Your annual household income must not exceed £60,000 You must live or work in London You must be unable to buy a home, including shared ownership, in the local area You must not own a residential property in the UK or overseas You must meet the minimum income required for your preferred property You must meet lenders’ general criteria to obtain mortgage finance. The full eligibility criteria and priority policy for a particular development can be found on the advertised listing.
28 First Time Buyer June/July 2024
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