The Practical Stuff

What houses can I buy through the scheme?

You can actually buy any house through the Rent2Buy scheme as long as the owner or developer is prepared to sell through this method.

At Rent2Buy we have some houses that we know are available and once we know your desired location and the type of house you are looking for we can see if one matches your requirements. The best method however is that you work with us to come up with a prioritised list of 3-5 developments currently for sale that you would be delighted with. We will then negotiate on your behalf.  As long as you leave all negotiations to us, our success rate is quite high.

Register now to take the first step to your new home

If I need to give notice on my rented accommodation can I still register my interest?

Of course, it makes sense to register your interest as soon as possible so we can let you know when a suitable property becomes available.

How is the purchase price of your house worked out?

The purchase price of your house at the end of the specified period is agreed in advance. The price is negotiated with the owner and is normally the current market value or less. Rent2Buy will negotiate the best possible price on your behalf.

How much rent do I pay every month?

The monthly rent you pay is the normal market rent or thereabouts. Some or even all of the rent may be credited against the eventual purchase price of your home. Rent2Buy will negotiate the rent on your behalf with the owner.

After what period of time am I able to buy my home?

The period of time is normally three years but if you are in a position to buy your home sooner than this you are entitled to. It may be possible to negotiate a different duration once this can be agreed with the owner. Rent2Buy will negotiate with the owner on your behalf.

Do I need to pay a Deposit?

A deposit of €2995 is required to participate in the scheme. The deposit is credited against the purchase price of your home at the end of the period. If you decide to cancel the arrangement the deposit is forfeited. The deposit is subject to VAT at 21%. Unfortunately Revenue have insisted we charge VAT on the deposit and as Revenue will be receiving this amount,  it is non refundable and can not be credited towards the house.

What happens if I decide not to buy the house at the end of the scheme?

If you decide not to proceed with the purchase of the house then you are entitled to walk away with no further obligation. However the initial deposit and any credit built up will be forfeited.

What happens if the value of the house has decreased from the agreed price?

With the terms of the scheme there is no obligation on the purchaser to proceed with the purchase at the end of the agreed period. However it may be possible to negotiate a lower price with the owner, but they are not obliged to do this. Rent2Buy will assist with this process.

What happens if the value of the house has increased from the agreed price?

With the terms of the scheme the owner must sell to you at the price agreed at the beginning of the arrangement.

Will the bank still need a huge deposit from me when it comes to buying the house?

Your position with the bank will have totally changed over the course of the scheme. You will have demonstrated to any bank that you have successfully completed a period of time achieving payments at a certain level.

You will also have acquired rental credit plus the initial deposit and we would encourage you to demonstrate a regular saving habit, which lenders love to see.

Is is also possible that the market value of the house will have increased over your initial agreed price.

In any case, an annual financial review is designed to keep you on track for completing the purchase of your home and this is part of our service.

I like what I'm hearing, what do I do next?

Just fill in the application form letting us know your location and house preference and we will be back to you in 48 hours.

How Long Will It Take

It can be very quick if you’re interested in a home that’s currently on our books. These will generally be available as a pull-down in the Development selection area of the application form.

For any other selection of Developments, it can take 3-6 months. We add your selections to our database and negotiate with Developers on the most popular developments and areas first.

What Can I do to Help my Application

• Get your Credit Check in as soon as you can. This will ensure you get first preference on new developments added.
  
• Stay as flexible on house-type as possible
  
• Rather than entering your “ideal” figure for rent and/or purchase, go as high as you can afford so that you are offered everything that might possibly match your requirements.

 

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The Legal Stuff

What type of agreement will I enter into?

The Rent2Buy scheme operates through a legal agreement called a Lease Option. Basically it is an agreement that gives you an option to purchase the house you have rented at an agreed price after a specified period. The owner is obliged to sell, but you are not obliged to buy.
The advantage to you is that the price of the house is fixed regardless of house price increases, the rent is fixed and the purchase date is fixed. It takes all the uncertainty out of the transaction so you can plan properly for your future.

Lease Options are quite common in Ireland but they normally operate with Commercial transactions. They are used in the UK, in some European countries and in the US for the purchase of houses in exactly the same way that we are using them for you at Rent2Buy.

Will I need a solicitor?

With any legal agreement you enter into you should consult with your solicitor. The Lease Option is a very straightforward agreement and the legal fees here should be minor. We would advise you to ask for a fee price in advance before giving the job to a solicitor.

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The Catch

Why would the house owner sign an agreement committing to sell at a price that will probably be lower than market value?

With the Rent2Buy scheme the house owner will have the perfect tenant in the house. Because you intend buying the house you will naturally look after it as if it were your own, which is a huge benefit to any owner.

The agreement is beneficial to the house owner as he has a long lease and the likely sale at the end of that period. What he may lose in the ultimate selling price he will gain in long lease and less headaches. It gives the owner the benefit of control and predictability, the same basic benefits as you would enjoy.

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