RENT TO OWN! An initiative to help Tenants buy a Home.
Appledore Lettings are pleased to be introducing an innovative and unique product to its services that helps Tenants to purchase their home.
Rent to Own enables potential homeowners to purchase a property and save for a deposit of around 10% of the agreed sale price and to move into their new home straight away. They pay an agreed fixed monthly rent and a ‘top up’ which builds up an amount that is used towards the mortgage deposit, therefore making it very easy for the tenant buyer to save up whilst living in the property.
Director Andrew Ruffle of Appledore Lettings stated, “We have put a modern twist to the strategy by designing policies that are aimed at being transparent to both Landlords and Tenants. Although we are just commencing the roll out of the service, the feedback has been amazing and re have received a great deal of interest from both Tenant buyers and potential Vendors”. This product has been widely used in other parts of the Country with huge success.
Andrew Ruffle added, “The scheme also assists Landlords who are looking to sell their properties within the next few years, or who want to sell now due to high existing mortgages and the tax changes which will be implemented in Section 24.*
Rent to Own is a great mid to long-term exit strategy suitable for accidental Landlords or Landlords with multiple properties that wish to have a structured disposal strategy and take advantage of annual Capital Gains Tax exemption.
‘It’s a win-win for everyone, the Tenant buyer gets to move into a property and can purchase at a time in the future once they have the deposit, and the Landlord gets to sell the property having had several years of constant rental income with no void periods’.
For further information about Rent to Own, please contact Appledore Lettings on 01548 853555 or email us firstname.lastname@example.org
* The amount of Income Tax relief landlords can get on residential property finance costs will be restricted to the basic rate of tax.
The changes will:
- affect you if you let residential properties as an individual, or in a partnership or trust
- change how you receive relief for interest and other finance costs
- be gradually introduced over 4 years from April 2017
Finance costs won’t be taken into account to work out taxable property profits. Instead, once the Income Tax on property profits and any other income sources have been assessed, your Income Tax liability will be reduced by a basic rate ‘tax reduction’. For most landlords, this will be the basic rate value of the finance costs.