What is rent to buy? | What is London Living Rent? | Help to Buy scheme explained

[@iambic128]

Liked it before I watched it 😊... Thank you for taking the time to research it and share your findings with us. Very very much appreciated 🙏🏽

[@SelfInvested]

Ah, good!

[@AbiChow]

Great video breaking it down! This is one of London's best kept secrets. There are a few other schemes that are less popular and less advertised so it can be really hard finding the info. I've been curious about this for awhile and interested to see what properties come up this year because a lot of construction works stopped for quite awhile last year. Will definitely end up making a video on it at some point!

[@SelfInvested]

Hey Abi! Thank you for the comment and feedback! I actually didn't know anything about the scheme until I got the request to make the video. The First Homes scheme is also an interesting one not mentioned enough: kzbin.info/www/bejne/eXnSiYKLiKtkf7c - hopefully we see it in a meaningful way!

[@AbiChow]

@@SelfInvested Thanks! Have queued it up to watch after your BBC Panorama video I'm currently watching 😆

[@SelfInvested]

Awesome! I hope you enjoy!

[@kingares9768]

OMG!!! I'm so late. Just finding out about this scheme. I'm gonna register my interest right now 👌🏾👊🏾

[@SelfInvested]

Haha! The scheme was new to me as well when I made this video. Great scheme if you can get on it!

[@MONEYANDTIME]

Well explained on rent to buy. Nice work.

[@SelfInvested]

Thank you, Jun! Well done on your channel growth it’s exploding with views!

[@ryanb01]

Good vids as always 👌🏾

[@SelfInvested]

Thanks bro, much appreciated!

[@hairbyzainab5334]

Thanks mate, I would really love for you to do a video on what to know before moving out to rent

[@SelfInvested]

Hey Zainab! Not sure when, but I will definitely do a video on this topic!

[@lilpinetreesss]

I’ve currently got a LISA account with not even a fraction of a 25% deposit of the average UK property - let alone London (around 2 grand) up and running. Despite the low numbers in there, would having a LISA make me illegible for this scheme? Since the growth potential could reach the 25% in 10 years anyway.

[@STATEC1RCUS]

Great video and very insightful!

[@SelfInvested]

Thank you Dominic! I’m glad you enjoyed!

[@adoseofcats]

What if I don't want to save for a deposit for a home and just want to rent for affordable price??

[@aarjay4429]

Another good one from you. thanks. One who is rentng a property for N number of years should technically be able to claim back (as equity or otherwise) price-delta over those N years and work as potential deposit to buy either the same or a different property. But the condition is the landlord should be "participating landlord". Are you aware of any govt. incentive to landlords to voluntarily participate in such schemes to help the needy in this process?

[@SelfInvested]

Thank you for watching! The only scheme I’m aware of like that is the Rent to Buy scheme, and the participating landlords are usually housing associations (social landlords). The tricky thing is that different housing associations call it by different names, so you need to search their websites and speak to each about their specific Rent to Buy scheme. Hope this is helpful!

[@antipro6772]

Very helpful video, thank you.

[@Appleboo222]

Great video thank you! I think it’s a good scheme I just wonder what the prices of the houses will be like after they are available to be bought!

[@SelfInvested]

That’s a good questions! I don’t think the properties will be any more affordable :/

[@topreviews244]

Available to eligible renters within the capital, London Living Rent homes are for middle-income households who currently rent and are aiming to build up savings to eventually buy a home through Shared Ownership or outright purchase. The homes are offered on tenancies of a minimum of three years with below-market value rent, however this can be extended to a maximum of 10 years. Landlords are expected to encourage their tenants into home ownership within a decade, with tenants being given support to save and have the option to buy their home on a Shared Ownership basis during the period of their tenancy. They will also be given extra priority for other Shared Ownership homes across London.

[@SelfInvested]

Thanks for sharing!

[@del3211]

So glad I watched this video.

[@SelfInvested]

I’m glad you found the video helpful! Is this a scheme you’ve discounted or still plan to use?

[@del3211]

@@SelfInvested I still plan to use, I’ve wanted to do this scheme for a while only because I want to move out very soon and by the time I save for a 20% deposit it may be in 4 years.

[@SelfInvested]

@@del3211 Are there any properties currently on the market in your area? Have you had a search on the website?

[@del3211]

@@SelfInvested Hi. Not in my area, but as you said 2021 there will be more houses for that scheme. I am looking at just outskirts of london

[@del3211]

@@SelfInvested also the link in your description says help to buy? Is there an option for rent to buy?

[@boni1482]

So informative thank you so much ..x

[@SelfInvested]

You’re very welcome, Bonnie!

[@fdre3701]

Hi, thanks for this video do you know what this scheme will be called in Kent ?

[@SelfInvested]

Sorry for the delay in getting back to you! From my research and discussions with people that have used the scheme, I don’t think there’s one consistent name. It may change according to housing association or provider. It worth talking to the housing associations in your area to find out if they are offering the scheme

[@F1972HSI7]

in usa, the tenant needs to pay a downpayment (option premiusm) at the beginning of the rental period, do you get this downpayment in the UK?

[@SelfInvested]

I haven’t rented since uni but I think in many cases in the Uk you have to pay 3 months upfront before moving in (someone will hopefully correct me if I’m wrong)… I guess this is the same as a down payment?

[@thandamkhize4767]

Only the usual 5 weeks rental deposit.

[@levidru8660]

Please how do I reserved a property with a developer who is registered with the Help to Buy Scheme and wish to apply for the equity loan.

[@SelfInvested]

Have you seen a property you want? Have you contacted the developer?

[@lukaszoff]

Good video, cheers boss

[@SelfInvested]

Thank you!

[@myafrosheen]

My only reservation is what happens if you decide to purchase a property on the open market instead of purchasing the rented property through shared ownership? Are you obligated to purchase it as shared ownership seems like a pretty bad scheme, especially when it comes to selling down the line

[@Nayimureyi]

Gov UK website says: 5. Buying a home You can use the deposit you’ve saved to buy any home, including those available using an affordable home ownership scheme.

[@prootas]

Hi, regarding the household income, how about me who is living and earning individually? My annual income is just around £25+ thousand but gets additional allowance in London.

[@SelfInvested]

Hey there, are you asking whether you’d be eligible for the scheme?

[@salrome2]

Are people with 5% initial deposit available ineligible for this scheme? What will happen once their tenure will finish if they can't buy after tenured tenancy, will they be evicted or can continue renting as long as they can't still afford to buy

[@SelfInvested]

If someone has a 5% deposit I don't think this makes them ineligible, the only cap mentioned is salary - but I'll need to look into this further. Also, at the end of the tenancy they expect you to buy, but I'll need to check what happens if you're unable. I do think this is unlikely, though, because you would have been saving at least 20% on rent and they may encourage you to use the Shared Ownership - but as I said, I'll check!

[@salrome2]

Thanks for looking into it, I was thinking this bcoz it is mentioned as condition for LLR that one can't buy a property in open market even on shared ownership (which usually needs 5% deposit), there can be multiple reasons one can't still save money in this volatile world e.g loss of job, other circumstances (like Covid), need in immediate family etc

[@SelfInvested]

@@salrome2 I see your point but you need more than a 5% deposit to buy a property - you also need a salary that can cover the mortgage - so I don't think a 5% deposit alone will mean you're ineligible. I also see your point about not being able to buy - I'll get back to you!

[@niamhthomas-molloy6805]

You mentioned it being an expectation to buy the house at the end of the renting agreement, what happens if you're unable to do so? Do you continue renting until you have a deposit or are there some ramifications for not purchasing the house? But great video! You're one of the few who are concise and give a well thought out answer to the question.

[@lxvideos1125]

The landlord (Housing Association) will reassess your affordability once your short term tenancy is up, and if you didn’t breach the T&Cs in the contract and you were able to save for the deposit, then you can buy the property if you want to. If you can’t afford to buy the property, they will reassess your affordability to rent and then they will give you another 3 years short term tenancy contract. You can only rent the property up to 10 years before you decide to buy the property or give it up. The short term tenancy usually last for 3 years.

[@psychobread1]

When you say buy outright after 5 years you mean I can put 10% deposit down and mortgage the other 90% yeah?

[@SelfInvested]

As far as I understand, yes

[@psychobread1]

@@SelfInvested thanks i have double checked this with a housing advisor and you are correct

[@FARINALIFESTYLE]

But the house price will remain same after 5 year ?

[@FARINALIFESTYLE]

@@SelfInvested but I have a question the house price will remain same after 5 year

[@psychobread1]

@@FARINALIFESTYLE No the house will be re-valued at the end of the 5 year term and you will need 10% of the new valuation

[@jamesnurgle6368]

thank you

[@SelfInvested]

You're welcome

[@josh9671]

The scheme could be better in many aspects I guess...

[@SelfInvested]

Yeah, potentially a very good scheme!

[@tutmosispagnotta]

Hello, very informative video, many thanks. I work as a professional nanny in London, my partner is engineer, do you think we could qualify? We are currently renting a flat.

[@SelfInvested]

Yes, possibly. It's worth getting in touch with your local Help to Buy agent to find out - www.helptobuy.gov.uk/equity-loan/find-helptobuy-agent/

[@kkff8044]

Can someone on universal credit be eligible for this scheme?

[@SelfInvested]

I haven’t seen anything that excludes people on universal credit, but it’s worth speaking to your local Help to Buy agent for advice. The main thing I’m aware of is not having bad credit!

[@kkff8044]

@@SelfInvested Ok thank you so much for your time

[@SelfInvested]

@@kkff8044 No problem at all 😉

[@topreviews244]

Most of the properties require you to have a specific minimum income. For example theres a 1 bed for £924 per month but you need to have a salary of 46k

[@rb7007]

It sounds good “initially’. But if there are only 6 properties available in the London area for the scheme. It seems near impossible you would actually be able to get one! 🤨

[@SelfInvested]

Yup, it seems very oversubscribed! Most of the homes in London will be available from 2021, so it’s one to keep an eye on if you think you’ll be eligible!