The Rent to Buy scheme is a discounted rent to buy scheme offered by Karbon Homes. Its to support our customers in order to get them onto the housing ladder. It is funded in part by Homes England (HE).
Homes England funding allows Karbon Homes to build housing that will be let at Intermediate Rent which will be 20% below the market rent level. The ultimate aim is to sell the home to the tenant after the five year term. They can use the discounted rent level to enable them to save up a mortgage deposit during the five year period that they are letting the home.
After the initial letting period we will be able to sell the home and the tenant will be given the right of first refusal, alternatively, we can convert the home to market or another form of affordable rent.
The sale of the home at the end of the five year rental period will be at the market value which will be established by a RICs valuer.
The key eligibility requirements for this scheme are:
- The property must be the customer’s only home
- Must be a working household
- Customers must be first time buyers or those returning to the market following a relationship breakdown
- Applicants should make a commitment when entering into low cost home ownership through the Rent to Buy scheme (for a minimum of 5 years) in
order to purchase their home
- The rent should utilise 25% – 45% of the household income, which identifies that a tenant is in housing need and meets Karbon Homes charitable