Frequent Asked Questions
How do I buy the house without applying for a mortgage?
A mortgage is not required to move into the property. You will rent the property for a period of time (5 - 7 years) and this allows you to build up a deposit, build your credit profile, or get more years on your books whilst enjoying living in the property. At the end of the period you will be able to buy the Rent to Buy house at a fixed price and apply for a traditional mortgage. If at the end of the period you do not want to buy, you don't have to as you only have the "option to buy".
Is Rent to Buy a Government approved scheme?
Parliament has backed Rent To Buy.
What if I don't qualify for a mortgage?
Five to ten years should be a sufficent amount of time for you to qualify for a mortgage, however sometimes in life things happen, so we recommend you contact a local mortgage broker and find out what actions you need to adopt for you to be able to qualify for a mortgage within the agreed term.

Here is what you can do:

1. Sell the property and make a profit based upon the equity your have built up and any increase in value. This is our recommended option. 

2. Not proceed to buy the Rent to Buy house. In this case you would lose any "moving in money".

Can I still sell the house at any time for a profit?
The beauty of the Rent to Buy scheme is yes you can. You are effectively getting all of the benefits of being a homeowner without having a mortgage.

If house prices rise over the term you can sell the property and benefit from any equity in the property in addition to the deposit you have paid that has grown throughout. This will enable you to continue to move up the housing ladder. 
What happens if house prices fall?
With anything, there is always an element of risk however, there is extensive data available on the performance of the UK housing market. Historically, house prices have never dropped over a period of 5-7 years.

Should it happen, hopefully you will still have built up equity in the property or you can simply walk away. 
If I do not complete on the purchase will you refund my Moving in Money?
The short answer is, no. The reason the Moving in Money is required at the outset is to ensure that you are committed to buying the house. It is also designed to provide you with the opportunity of getting onto the housing ladder as quickly as possible by having a sufficient deposit to obtain a mortgage.

It is no different to buying a property with a mortgage; you cannot ask the mortgage lender to return your deposit if you decide to move but you still benefit from any equity in the property..

The moving in money required is usually 3% - 5% of the asking price. 
What happens to my deposit once I have paid it?
The deposit is retained by us in a separate account. It is then paid to your appointed solicitor when
the purchase is completed. 
What is the legal process?
Rent to Buy works in a similar way to the traditional way of buying a house. When you buy a house you “exchange contracts”. At this point both sides are legally committed to the sale and purchase. A “completion date” is agreed and this is when you become the legal owner and move in.

With Rent to Buy you have an option to buy at an agreed "term" EG: (5 years) so you can purchase the property within the term at the agreed "option price" set from the start.

Once exchange of contracts has taken place you can move into the property straight away. Both
parties have entered into a legal agreement and the seller is committed to selling the house to you at the fixed price. The seller cannot change their mind or revise the price so you have the security of knowing you are on the first step to homeownership.

However - you can change your mind if you do not wish to buy. (you have an option to buy).

Your solicitor will guide you through the process and we can provide you with an experienced Rent to Buy solicitor who will independently represent you. 
If house prices rise can the owner try and change the price?
Absolutely not. The seller has entered into a legally binding agreement to sell the property at the agreed price and they cannot change their mind. Under the legal agreement the price is 100% fixed. 
Who is responsible for maintenance of the house?
The house is now your home and we want you to treat it that way. You are free to decorate and improve the property as you wish (just like your own home). You benefit from any increases in the value of the property as a result of any improvements you have made not the seller. You pay for any maintenance costs of the property. The seller will however carry out an annual gas safety check. 
Who pays for the insurance?
The seller is responsible for organising and paying for the house building insurance. If you need to make a claim on the building insurance, it will be subject to you paying the seller’s insurance excess. It is your responsibility to organise and pay for contents insurance for your own possessions. 
What happens if I can't afford to make the payments?
In the same way as if you had a mortgage or were simply renting in the usual way, it is your responsibility to pay the rent and monthly deposit top up and if you fail to do so your home is at risk.

If you experience difficulties in paying you should contact us immediately to agree a proposal for payment. If you default on payment your tenancy may be terminated when you will be lose your right to purchase the property. 
Do you allow pets in the house? 
Yes we do.
Copyright 2018 | Spinning House Investment Property Limited, 70-72 The Havens, Ransomes Europark, Ipswich, IP3 9BF | All Rights Reserved
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