Government minister Grant Shapps has given his approval to TryitBuyitProperty.com, a new website that pairs homeowners with would-be buyers on a 'rent to buy' basis both in the UK and overseas.
Under rent to buy, people can temporarily become tenants in what could potentially become their new home, enabling them to test-drive it for a few months before completing the sale.
Rent to buy schemes can also help first-time buyers or people who do not have the money for a deposit. This is because many schemes allow them to put part or all of the rent they've paid towards the deposit, reducing the loan-to-value ratio needed on the mortgage.
David Riley, the entrepreneur behind the site, said the system works in a similar way to test-driving a car.
"Just like purchasing a car through a personal lease purchase plan, you can choose to walk away from the property at the end of the contract," he added.
He suggested that the rent to buy approach is especially suitable when looking for a home overseas, as it provides the chance to experience the country where it is located and decide whether it is suitable for long-term living.
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Lease Options by another name?
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