Frequently asked questions.
Straight answers about the tenancy, purchase option, payments, funding and what happens if circumstances change.
Is this the government Rent to Buy scheme?
No. This is a private Tenant Buyer arrangement and its terms may differ from government-backed affordable-housing schemes.
Do I own part of the property while renting?
No. You remain a tenant unless and until the purchase legally completes. Purchase credits do not themselves give you ownership or equity.
Is the purchase price guaranteed?
The price is agreed for the option period, subject to the written agreement and your compliance with its terms. The option must be exercised and the purchase completed within the required timeframe.
Does all my rent go towards the deposit?
No. Ordinary rent pays for occupying the home. Only payments expressly identified as purchase credits—such as the agreed option payment and top-ups—are credited on completion.
What happens to my option payment and top-ups if I do not buy?
The agreement must state the refund and retention rules. Do not assume payments are refundable. Review these provisions with an independent solicitor before signing.
Must I buy the property?
An option normally gives a right rather than an obligation to buy, but your exact responsibilities and the consequences of not completing are governed by the agreements.
Will I automatically receive a mortgage?
No. Mortgage approval is a separate lender decision based on your circumstances and lending criteria at the time. Obtain advice early and review progress during the option period.
What if the property value rises or falls?
If it rises, the agreed price may be advantageous. If it falls, a lender's valuation may be lower than the agreed price and you may need more funds. Future equity is not guaranteed.
Who pays for repairs and improvements?
The tenancy states repair responsibilities. Obtain written permission before alterations. Do not assume improvement costs will be refunded or added to your purchase credits.
Can the owner sell the property to somebody else?
The option agreement should restrict dealings that interfere with your valid option during its term. Ask your solicitor how your interest will be protected.
What if I miss a payment or breach an agreement?
Late payment or another breach may affect the tenancy, option and purchase credits. The agreements should explain notice, remedy and termination provisions.
What professional advice should I obtain?
Use your own property solicitor and obtain suitable mortgage and financial advice. Consider a survey and independent valuation before purchasing.
Talk to ASG Property.
We can explain the proposed commercial terms, but independent advisers should advise you on the legal and financial consequences.