News: Rent To Buy Model - How it works

The Rent To Buy model that we operate is very different to the conventional model. This is not a try before you buy scheme. It is in essence a purchase – hence why Delayed Purchase is a more suitable name for it.

The model is designed to help those who need time to sell their property or to get their finances in place - a workaround for the current situation where the banks are not lending.

An example of the model that we operate as a company is as follows:

• You pay a large deposit of between €15,000 and €25,000

• you pay a monthly rent of between €500 and € 1,000 per month

• If you complete the purchase between 0 to 12 months then 100% of the deposit and 100% of the rent is deducted from the purchase price

• if you complete the purchase between 12 and 24 months then 100% of the deposit and 50% of the rent is deducted from the purchase price

• There may be the ability to negotiate the term to 3 years in some instances then 100% of the deposit is deducted from the purchase price. None of the rent will de deducted

** please note the above is purely an example and the exact figures and timescales would be agreed by buyer and seller

There are 2 types of delayed purchase agreements:-

• Where access to the property to be purchased is permitted and a monthly rent agreed

• Where access to the property to be purchased is not permitted until the notary signing – in this instance there would be no monthly rent

This is proving very popular at the moment because it allows buyers to secure property and a great price and also allows use of that property whilst they are waiting to sell their own property.

The model is also great for some sellers because it allows them to secure a sale and get on with their future plans knowing the property has been sold.