Rent to buy

Content owner : new.business@knh.org.uk Last updated : 19/10/2017


Benefits of the scheme

Rent to Buy is a scheme that allows people who wish to become home-owners the option to get onto the UK housing Ladder with 100% Home Ownership. The scheme will:


  • Give you the opportunity to rent a newly built home that you can buy in the first five years of being a tenant.
  • Help you build a mortgage deposit whilst you pay rent - as you pay your rent, you will also be 'saving' for a mortgage deposit. 50% of the rent you pay will count towards a discount off the final purchase price. You can accumulate up to 10% of the property value as a discount when you buy.
  • Mean that you buy the home outright: this is not a shared ownership scheme, you buy 100% of the property.
  • Let you rent the home as an "assured short-hold" tenant, which will determine your rights as well as your responsibilities.
  • Allow you to continue to rent the home, if you decide not to buy.

Before you apply

Before you submit an application form or register an interest you must meet the following criteria, and provide evidence to support your application.

Meet the eligibility criteria

Financial eligibility criteria

It is critical that the potential occupiers can afford both the rent and a mortgage in to the future.

Initial income thresholds for each property will be based on you having a household income of at least four times the annual rent due for the property. For example if the monthly rent payment due is £500 pcm, you will need a household income of at least £24,000 to be eligible for the property (£500 x 12 x 4 = £24000)

You must NOT have any outstanding debts greater than £15,000

Documents to include with application form


About the properties and agreement

These properties are owned by a company called QSH but will be let and managed by Kirklees Neighbourhood Housing. They will be let and managed differently from council properties.

Tenancy agreement

You will be an Assured Shorthold tenant. Details of the main rights and responsibilities of Assured Shorthold tenancies can be found in our document renting privately at PDFRenting Privately for QSH Alternatively you can read more at Private Renting at GOV.UK.

We understand that the make up of families can change through the years and as part of our goal of creating sustainable communities we would like your home to be fit for purpose when you move in as well as in the years to come. We have therefore not put a limit on the number of bedrooms you can have. The main thing is that you can afford it. As part of the financial assessment we will be able to discuss affordability with you. If you are interested in a two OR three bedroomed property, you may need to make two separate applications for each.

The properties will be let unfurnished. You will be responsible for providing carpets, curtains light fittings and garden finishes if applicable. When you are offered a home, you will have the opportunity to view the property and its fixtures and fittings before you make a final decision. You can use this opportunity to assess the home just to make sure that it is suitable for your individual needs.

Buying the Home

You can buy the property after one year of renting and before the fifth anniversary your tenancy. If you have not completed the sale by the 5th anniversary of moving in you will not be able to buy, but may remain in the home as a tenant and continue to pay rent.


When you buy the property you will own 100% of it and you will have no limitations or restrictions on when or to whom you sell it.


If you wish to buy your home, it must be within the first five years of your tenancy. If you decide not to buy, you can remain in the home as a tenant for up to 20 years. You are entitled to end the tenancy any time you wish to, by giving appropriate notice to KNH. The terms of your tenancy will be stated in the Assured Short-hold Tenancy Agreement you sign at the beginning of the tenancy.

Discounts

As you pay your rent, you will also be “saving” for a mortgage deposit. 50% of the rent you pay will count towards a discount off the final purchase price.


You can accumulate up to 10% of the property value as a discount when you buy.If you decide not to purchase, you will not receive the discount value, it only counts towards the purchase of the home. If you decide to leave,you will forfeit any discount you have accrued. It will pass to the next tenant of the home. QSH will value the property and will let you know the valuation. This will be the price they will sell the property to you and they will let you know the discount you have accrued for a mortgage deposit through the rent you have paid.As part of your tenancy agreement for the home, there will be a 'minimum option price' noted. QSH will not sell the property for less than this amount.


Available developments

Mirfield

We have an opportunity to re-let one previously tenanted 3 bedroom town house property on the Rent to Buy scheme at Greenside Road, Mirfield. The rent per calendar month is £551.76 with an additional service charge of £7.19 per calendar month.


You are eligible to apply if you can answer YES to ALL the following statements:


  • Minimum household income of £26,800
  • You have lived or worked in Kirklees for more than 12 months and intend to settle in the Kirklees area
  • At least one member of your household is in employment
  • Have a good tenancy record and can provide references
  • Have maintained a clear rent account on this tenancy for 12 months and have no rent arrears
  • Have not been served with a legal notice (in regard to a tenancy) in the last 12 months
  • The proposed tenant(s) have no unspent criminal convictions
  • Have the correct leave to remain in the UK
  • The new home will be your only or main home with an intention to purchase (The exception to this is if you have to move out of your matrimonial home due to relationship break down and you cannot afford to buy a new home without help)
  • PDFGreenside Road map (PDF)

As with all properties on the Rent to Buy Scheme, as you pay your rent, you will also be 'saving' for a mortgage deposit. 50% of the rent you pay will count towards a discount off the final purchase price.


If you have any questions please contact KNH on 01484 416439.

Chickenley

Chickenley rent to buy

49 affordable family homes in Chickenley, under construction with contractors, Triton.

We have a new residential development coming up in 2017 at: Chickenley

See the information below for details about the development including plans, prices and how to apply.


Property types

There will be 13 two bedroom properties and 36 three bedroom properties available on the Chickenley development at a mixture of "market" and "affordable rents".

The properties will be advertised in phases in line with their completion date. Therefore the first round of properties being advertised shortly will be Blocks M and N (ready early August) and Blocks O; P; Q ; R; S; T; U; V (ready late August).


Property and site plans

Chickenley development rent to buy prices
House type Block Minimum option purchase price Rent per calendar month Minimum household income required Discount accrued through rent payments per annum
2 bed market K, H, C, £120,000 £550.00 £26,400 £3,300
3 bed market A, B, D, F, G, I, J, N, P, R, S, T, U, £140,000 £605.00 £29,000 £3,625

How to apply

Fill in our simple online form

Apply online for a rent to buy market property

Register interest

To register your interest in any future developments and join our mailing list, please email new.business@knh.org.uk giving your name, postal and email addresses and we will let you know when the new developments become available.


Contact us


  • By telephone on 01484 416439
  • By email at new.business@knh.org.uk
  • By post to
    Business Development Team
    Perseverance House
    Huddersfield
    HD1 6RZ

Partnership with QSH









QSH is a specialist provider of funding for social and affordable homes. QSH provides a genuine bridge between the public and private sectors.