Member Article

New scheme launches to help potential homeowners

Local people struggling to buy a house can now benefit from a new concept being launched by leading letting agency, Interlet North East.

The Rent to Own service enables potential homeowners to purchase a property with a small deposit at a pre-agreed price and move into their new home straight away.

The scheme is aimed at those having problems getting onto the housing ladder whether they are self employed with less than three years of accounts, don’t have enough savings for a deposit or if they have a poor credit rating, CCJ or arrears. It allows people to repair their credit file as they save up enough money to use as a deposit to purchase the property within an agreed timescale.

The service is easy to set up and after the tenant buyer has chosen a property of their choice, Interlet will draw up the legal paperwork at no cost to them. There are no credit checks or mortgage offers needed and the tenant buyer can normally move in within a week with an initial low deposit.

They pay an agreed fixed monthly rent and a ‘top up’ which is paid into a secure client account with full client protection and fidelity insurance which is used as the deposit.

The monthly top up builds up an amount which is used towards the mortgage deposit when they come to purchase the property at a time that is right for them. They can buy the property during any time within the agreed timescale.

Another attraction is that tenant buyers can decorate, improve and add value as they wish to the property and treat it as their own from day one.

They can also walk away if their circumstances change and providing they are not in any arrears and the condition of the property has not deteriorated, it will not affect their credit rating.

Established in 1999 Interlet North East is one of the largest letting agents in the region. The company was purchased by the Castledene Group in 2010 which now manages more than 1850 properties throughout the North East over seven branches including Northumberland, Tyne and wear, Cleveland and Durham.

John Paul, managing director of the Castledene Group said: “Purchase options have been used in commercial and land transaction for hundreds of years but we have only started to see them being used for residential transactions quite recently.

“We have put our own modern twist to the scheme by designing policies that are aimed at being transparent to both buyers and tenants. Although we only recently rolled out the service we have already received a great deal of interest from both tenant/buyers and vendor/landlords alike and we anticipate huge interest over the coming months further afield from across the region.”

Laura Yates, 24, and her partner Stephen Patterson, 29, from Castle Town are one of the families to benefit from the service and moved into their new home on Glenegles Road in Grindon last week. Thanks to the Rent to Own scheme they have moved into a three bedroom terrace house worth £106,000 along with their two children Ty aged two and half years and Dakota aged 17 weeks.

Laura and Stephen have been together for five years and had previously lived with their parents and rented two properties. Stephen works for John E Laing as a builder and they had applied for a mortgage but were rejected on one point on their credit report. They had searched the Right Move website when they came across the Rent to Own service.

Laura, who used to work for Jennings Ford before having children said: “Rent to Own is brilliant for people looking to buy a house. The service is quick and we were able to move within two weeks of us choosing the property. The staff were really helpful and friendly and in five years’ time we will end up owning the property so can make as many changes to it as we like.”

John Paul added: “The scheme also helps landlords who cannot sell their property, possibly due to high existing mortgages, so the conventional way of selling a property may not be appropriate. We are taking on around 30 landlords to test the response which so far has been extremely positive.

“Rent to Own is a great mid to long term exit strategy suitable for accidental landlords or for landlords who wish to have a structured disposal strategy and take advantage of annual Capital Gains Tax exception.

“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 are ready and credit worthy, and the landlord gets to sell their property.”

Adele Crocker, Rent to Own specialist for Interlet said: “I speak to a lot of frustrated property owners who are unable to sell their property via conventional methods. Rent to Own gives them another option. I am delighted to be part of a service which has helped people like Laura and Stephen get onto the property ladder, which without Rent to Own would not have been possible.”

The Castledene Group, which was set up by John Paul in 2008, was voted Letting Agency of the Year in the North at the Letting Agency of the Year Awards 2012.

For more information, contact Adele Crocker, Interlet North East, 12 Blandford Place, Seaham, SR7 7EL on 0191 5815709 www.interletnortheast.com

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