# rent to buy



## tonemar (Nov 9, 2010)

Retiring to Spain shortly. Lot of hassle selling property in the UK, will eventually go but takes time. Rent to buy seems, on the surface to be a reasonable idea.
Can move when I want, UK property can sell as and when. If we rent only thats 'dead money'
My question to you good folks, anybody actually done such a move, but mainly what are the negative aspects of such a move.
Any info greatly appreciated.
T


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## jojo (Sep 20, 2007)

tonemar said:


> Retiring to Spain shortly. Lot of hassle selling property in the UK, will eventually go but takes time. Rent to buy seems, on the surface to be a reasonable idea.
> Can move when I want, UK property can sell as and when. If we rent only thats 'dead money'
> My question to you good folks, anybody actually done such a move, but mainly what are the negative aspects of such a move.
> Any info greatly appreciated.
> T


IMO its one of those ideas that sounds good, but hhhhmmmm, I'm not so sure!! The agreement is made between you and the vendors/landlords and can vary in its contents, terms and conditions (you must make sure the agreements are written up and agreed by an abogado working for you!!). The downsides can be that property prices may still be falling in Spain, so if you agree on a years rental and the purchase price, then you could (inspite of deducting the rent) still pay more for the property than its worth, I believe that you also have to put down a sizable deposit!! You may, for many, many reasons change your mind once you're in. Also I believe that once the agreement has been signed, the property is then signed over into your names, which means effectively you "own" it - again, that can be problematic if things go wrong???? And fo course, if its your UK house sale that you're waiting for, what happens if you still havent sold in the allotted timescale??

Personally I think renting without the "buy" is the way forward right now, as rents are fairly cheap at the moment, property prices in Spain arent rising at all (in some cases they're still falling) and of course, its nice to come over with no ties or commitments to see whther you like it, or like the area etc...!!!

Just my thoughts

Jo xxx


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## tonemar (Nov 9, 2010)

Many thanks, taking in on board
T


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## Alcalaina (Aug 6, 2010)

tonemar said:


> Many thanks, taking in on board
> T


I agree with Jojo, right now there is no advantage to rent-to-purchase. You are better off keeping your options open!


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## jojo (Sep 20, 2007)

There are those who are interested in houseswaps as an option???

Jo xxx


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## xicoalc (Apr 20, 2010)

Agree with Jo. The banks have a lot of property and somone was saying that some of the banks have the rent to buy option but it is an option - ie you rent for X period with an agreed price to buy and an agreed mortgage at the end if you want - OR hand keys back and walk - not sure how much truth there is in this but worth investigating.


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## Nignoy (Jun 4, 2010)

talking of houseswaps!! anyone fancy a couple of months houseswap in sunny queensland any time after july next year, pm me for more details


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## MaidenScotland (Jun 6, 2009)

Nignoy said:


> talking of houseswaps!! anyone fancy a couple of months houseswap in sunny queensland any time after july next year, pm me for more details




John I may be interested.. I will get back to you xxx


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## Nignoy (Jun 4, 2010)

MaidenScotland said:


> John I may be interested.. I will get back to you xxx


look forward to it , maybe we can have a chat , when we are in spain, jl


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## Leper (May 12, 2010)

Rent to Buy; you're more than likely on to a loser here. My advice:- Rent a property in the off season anywhere and use it as a base for about a month or more. Visit several destinations and think hard where you want eventually to retire to. Then rent in that location at different times just to ensure you like the place. Then buy in the area you have fallen in love with.

Sorry for ending sentences in prepositions.


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## tonemar (Nov 9, 2010)

Leper said:


> Rent to Buy; you're more than likely on to a loser here. My advice:- Rent a property in the off season anywhere and use it as a base for about a month or more. Visit several destinations and think hard where you want eventually to retire to. Then rent in that location at different times just to ensure you like the place. Then buy in the area you have fallen in love with.
> 
> Sorry for ending sentences in prepositions.


Thanks for everybodys input, much food for thought.
House swap hmm, at present here 2c, blowing a gale, live near the sea which is crashing in, wonderful sound. Autum leaves are a wonderful colour except they've all blown off the trees, forecast for tomorrow, sever weather warnings.
Anybody interested in a swap!!!!!!!!!!


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## xabiaxica (Jun 23, 2009)

tonemar said:


> Thanks for everybodys input, much food for thought.
> House swap hmm, at present here 2c, blowing a gale, live near the sea which is crashing in, wonderful sound. Autum leaves are a wonderful colour except they've all blown off the trees, forecast for tomorrow, sever weather warnings.
> Anybody interested in a swap!!!!!!!!!!


we've had severe weather warnings here since monday - & severe winds (rather warmer though)

off the warnings now in my area


I saw on the tele yesterday that parts of Spain have snow already, so it must be colder than 2c in those areas!!


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## jojo (Sep 20, 2007)

tonemar said:


> Thanks for everybodys input, much food for thought.
> House swap hmm, at present here 2c, blowing a gale, live near the sea which is crashing in, wonderful sound. Autum leaves are a wonderful colour except they've all blown off the trees, forecast for tomorrow, sever weather warnings.
> Anybody interested in a swap!!!!!!!!!!


You'd be surprised! Due to the work situation, the recession and the exchange rate there are many people who are desperate to go back to the UK, but cant sell their houses and are effectively stuck!

Jo xxx


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## xabiaxica (Jun 23, 2009)

jojo said:


> You'd be surprised! Due to the work situation, the recession and the exchange rate there are many people who are desperate to go back to the UK, but cant sell their houses and are effectively stuck!
> 
> Jo xxx


yes, you're right

I know quite a few who are stuck here against their will


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## Cazzy (Nov 23, 2008)

tonemar said:


> Thanks for everybodys input, much food for thought.
> House swap hmm, at present here 2c, blowing a gale, live near the sea which is crashing in, wonderful sound. Autum leaves are a wonderful colour except they've all blown off the trees, forecast for tomorrow, sever weather warnings.
> Anybody interested in a swap!!!!!!!!!!


Where are you in the UK?


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## tonemar (Nov 9, 2010)

Cazzy said:


> Where are you in the UK?


Norfolk, or as they say Norfick!!
T


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## jojo (Sep 20, 2007)

tonemar said:


> Norfolk, or as they say Norfick!!
> T


My friend played in a band that was called "Norfolk in good" you have to say it to get it LOL

Jo xxxx


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## xabiaxica (Jun 23, 2009)

tonemar said:


> Norfolk, or as they say Norfick!!
> T


I thought they said NARF*&K

at least my MIL always did & she was from Cromer



jojo said:


> My friend played in a band that was called "Norfolk in good" you have to say it to get it LOL
> 
> Jo xxxx



which really helps understand that!!!


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## Alcalaina (Aug 6, 2010)

jojo said:


> My friend played in a band that was called "Norfolk in good" you have to say it to get it LOL
> 
> Jo xxxx


I remember the name from when I used to go to folk festivals! Were they a ceilidh band?


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## jojo (Sep 20, 2007)

Alcalaina said:


> I remember the name from when I used to go to folk festivals! Were they a ceilidh band?



They used to play around Worthing and the sussex folk scene!! Our friend was a geordie called Len, he and his two brothers and another couple of chaps. 

Jo xxx


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## mattferrier (Oct 18, 2010)

Leper said:


> Rent to Buy; you're more than likely on to a loser here. My advice:- Rent a property in the off season anywhere and use it as a base for about a month or more. Visit several destinations and think hard where you want eventually to retire to. Then rent in that location at different times just to ensure you like the place. Then buy in the area you have fallen in love with.
> 
> Sorry for ending sentences in prepositions.


i agree with this statement. i have just moved out here, but with the rental market in the uk being strong and the rental market where i am around marbella being so weak, the rent for my house in uk will pay the mortgage AND my rent for the apartment i have out here. i'm shocked how cheap the rent is here and the amount of properties available.
i personally dont think the property market has dropped enough in spain, some have come down but most havent hence why i am going to continue to rent here until prices come down further and then sell up in the uk.
with the advice from the guys on here they gave me an idea of locations to look in, so i spent a week on holiday close to where i wanted to be, spent the week driving round areas near to me and found a nice area almost by accident.
all aspects of the rent is negotiable right now, from price,term,get out clauses and even what they will furnish.


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## edtree (Apr 13, 2011)

mattferrier said:


> i agree with this statement. i have just moved out here, but with the rental market in the uk being strong and the rental market where i am around marbella being so weak, the rent for my house in uk will pay the mortgage AND my rent for the apartment i have out here. i'm shocked how cheap the rent is here and the amount of properties available.
> i personally dont think the property market has dropped enough in spain, some have come down but most havent hence why i am going to continue to rent here until prices come down further and then sell up in the uk.
> with the advice from the guys on here they gave me an idea of locations to look in, so i spent a week on holiday close to where i wanted to be, spent the week driving round areas near to me and found a nice area almost by accident.
> all aspects of the rent is negotiable right now, from price,term,get out clauses and even what they will furnish.


Hi mattf.
Do you know if that's the same around surf areas in Spain? (esp the Sth near Portugal) 
Regards
edtree


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## edtree (Apr 13, 2011)

Hey Jo and crew!!!
I'm usually bothering ppl over on the UK forum but saw this idea about house swaps as an alternative to rent to buy schemes. Great idea but probably tricky to set up. Does anyone know any contacts in London to start some enquiries? I will be there next week trying to sort accommodation etc.
Best Regards
Hari Om
edtree
pat on back for my second star : D


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## jojo (Sep 20, 2007)

edtree said:


> Hey Jo and crew!!!
> I'm usually bothering ppl over on the UK forum but saw this idea about house swaps as an alternative to rent to buy schemes. Great idea but probably tricky to set up. Does anyone know any contacts in London to start some enquiries? I will be there next week trying to sort accommodation etc.
> Best Regards
> Hari Om
> ...


Hiya! We looked at house swapping when we first came here and it is neither cheaper or easier, we thought we could simply exchange deeds etc for barely no money therefore avoiding the usual charges - but oh no  The only benefit is that the two people involved get buyers. Apart from that both transactions are treated separately and the costs are as if you were simply selling a house and buying another.

Jo xxx


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## Cazzy (Nov 23, 2008)

A lot of the owners of houses we are selling are doing a rent to buy type thing. They take a down payment of 10% of the house value, then the buyer pays 'rent' for an agreed period, then they pay the final ammount on an agreed date minus the rent they have payed. 

It seems to be working well for people and we have sold a couple of properties like this in the last month.


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## jojo (Sep 20, 2007)

Cazzy said:


> A lot of the owners of houses we are selling are doing a rent to buy type thing. They take a down payment of 10% of the house value, then the buyer pays 'rent' for an agreed period, then they pay the final ammount on an agreed date minus the rent they have payed.
> 
> It seems to be working well for people and we have sold a couple of properties like this in the last month.



There are some pitfalls with that tho arent there??? Something about who actually owns the property and if minds change????? Altho its possibly an answer if the pitfalls are addressed correctly???

Jo xxx


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## Cazzy (Nov 23, 2008)

jojo said:


> There are some pitfalls with that tho arent there??? Something about who actually owns the property and if minds change????? Altho its possibly an answer if the pitfalls are addressed correctly???
> 
> Jo xxx


Yeah but it has to be done through a solicitor, the thing is if the buyers decide to break the contract the owner gets to keep the 10% and any monthley rent payed, so although they have lost their buyer they have a reasonable amount of money for the inconvenience.


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## edtree (Apr 13, 2011)

Cazzy said:


> Yeah but it has to be done through a solicitor, the thing is if the buyers decide to break the contract the owner gets to keep the 10% and any monthley rent payed, so although they have lost their buyer they have a reasonable amount of money for the inconvenience.


thanks for your answer Jo^

But Cazzy what about if the owner renegs? Do they suffer a penalty?

Also is your firm help to help on the net?
Thanks
edtree


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## jojo (Sep 20, 2007)

I seem to remember that when you rent to buy, its effectively a deferred payment but not a deferred ownership and during this time, if the property drops in value, the prospective buyer could still pull out eventho their name would be on the deeds (causing problems). The deposit maybe worth losing if the drop is too much and likely to continue - something like that ????? ............. I hasten to add I'm not an expert, but have looked into doing this in the past and that was what I found, but..........

Jo xxx


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## Cazzy (Nov 23, 2008)

edtree said:


> thanks for your answer Jo^
> 
> But Cazzy what about if the owner renegs? Do they suffer a penalty?
> 
> ...


They cant bacause it is a delayed purchase and the sales contract is already signed. I think it is really helping a lot of people who are desperate to move on.
I am not party to what goes on between the solicitor/seller/buyer, but it is obviously legal.


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