Stonewater Homes - Rent to Buy - FAQ Handbook

Rent to Buy Frequently Asked Questions

What is Rent to Buy? Rent to Buy is exactly how it sounds. You rent the property for 5 years and at the end you buy it. The rent on the property is set at 80% of the market rent (including service charge) allowing you to save money towards a deposit to buy the home you love.

Am I eligible?

Working households with at least one tenant in full time employment are eligible to take part in the Rent to Buy scheme.

You should not currently own a property, though Stonewater may consider you if you do but unable to live in that home due to exceptional circumstance such as a relationship breakdown.

You have to be serious about buying a home in the future and committed to saving the 20% not being charged as rent towards a deposit. You will be asked to sign an Options Agreement confirming this.

Do I need to live in the local area?

No, you don’t need to be from the local area to apply for one of our Rent to Buy homes.

If we have more applications than properties available we may have to follow a priority criteria, so make sure you supply all the necessary paperwork to the agent in a timely manner.

Will I be referenced?

Reference checks will be carried out on all applicants over the age of 18 by our letting agent. This will include: ··

n Employment reference, confirming that as a household you earn at least four A times the rental amount.

·· A Landlord reference, confirming you have always paid your rent on time and looked after previous properties you have rented. ·· A Credit reference, confirming you have an adequate credit score to be able to secure a mortgage at the end of the 5 year tenancy. ·· A Right to Rent check, confirming you have a legal right to rent a property in the UK. ·· M oney Laundering/fraud prevention checks include a check of valid photographic and proof of address identification.

There will be no cost to you for the referencing checks.

Please note: Stonewater will not be able to accept applications from those subject to a Bankruptcy or County Court Judgement above £500 within the last 3 years.

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How do I pay my rent?

Your rent is set at 80% of the current market rent including any service charge.

The first months rent will be collected by our agent in cleared funds 3 working days prior to you starting your tenancy.

Future rent will be paid directly to Stonewater via Direct Debit in accordance with the date you moved into your home i.e. for a tenancy which commences on 14th March the rent will be due on the 14th of each month moving forward.

Please be aware that your rent will be subject to an increase each year in line with CPI index plus 1%.

Will I have to pay a deposit?

Yes. The deposit, equivalent to 5 weeks rent will be payable to our letting agent 3 working days before move in. Our Agent will register your deposit with one of the 3 Government approved schemes and provide you with the terms & conditions of the relevant scheme.

If you are eligible for a Local Authority Bond of equivalent value, Stonewater will consider this in lieu of a deposit.

How do I apply?

If you have already viewed a property with one of our letting agents, then you should contact them to start your application. If you have not yet seen one of our fantastic homes, please contact our new homes team on 023 8065 8858 (option 1) and they will refer your details to the agent.

Once your referencing is complete and your eligibility confirmed we will be in touch to formally offer you a home. Only at this point will your chosen home be secured so it is vital that you act quickly once you have seen a property you like.

Do you accept Housing Benefit?

We do, although applicants have to be working and earn four times the monthly rent – it is unlikely that anyone meeting the criteria for Rent to Buy would be eligible for Housing Benefit.

Can I carry out a mutual exchange from my current housing association property?

No, we are unable to accept mutual exchanges, nor will you be able to once you have moved in to your Rent to Buy home.

Can I have pets?

Pets will be considered subject to review and consent. Please make the agent aware of any pets you may have as part of your application so the appropriate consents can be granted.

Can I decorate?

You will need to complete a consent form before you make any alterations to your home. We do ask that you don’t decorate within the first 12 months of moving in as this can affect the defects liability period offered by the builder.

Are there any restrictions on property size?

No, if you are able to demonstrate that the property is affordable and that you intend to buy at the end of the 5 year tenancy period, there are no restrictions on property size.

Should there be more applications than properties available we may look at family size before confirming an offer.

Your rent is set at 80% of the current market rent including any service charge.

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Who is responsible for repairs?

As Landlord Stonewater are responsible for repairs to your home where this has not been caused by negligence. Please report any repairs necessary to Stonewater’s customer contact team on: customers@stonewater.org 023 8065 8858 (option 1) As a tenant you are required to keep your home clean, tidy and not cause damage.

Any damage caused will be charged to you and taken out of the deposit monies held, should you not proceed to purchase at the end of the 5 year tenancy.

Why do I have to pay a service charge?

The service charge is payable to cover communal costs associated with your home such as road repairs etc. Whilst you are a tenant this is included in your monthly rental payment and you will continue to pay this when you buy your home. The service charge is reviewed on an annual basis and is payable by householders on the development.

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Please contact us to discuss any matter relating to Rent to Buy. 6

What if I want to buy my home sooner than the 5 year tenancy?

Do you charge an administration fee?

It is not possible to buy your home before the 5 year tenancy term has expired. We will contact you when you are approaching the 4.5 years anniversary of your tenancy to find out your intentions for purchase and should you wish to proceed a RICS (Royal Institution of Chartered Surveyors) valuation will be conducted and a formal offer to sell issued to you (subject to the price not breaching the Options Agreement clause). You must confirm your intention to purchase your home within 1 month of issue.

There is no administration fee payable as part of your Rent to Buy application. Once you are a tenant and subsequently a homeowner, you may be subject to administration fees for items such as:

Where the property is being sold Leasehold (typically if you are buying a flat), a 125 year term will be issued.

·· P rovision of legal documents to you for both the purchase and future sale of your home.

Should you confirm you would like to buy your home but are unable to do so until year 6 of your tenancy, a 12 month extension may be considered to give you opportunity to save the remaining funds needed. In such circumstances an affordability assessment will be carried out by Stonewater prior to the extension being granted.

·· Late payment of rent or service charge.

If you choose not to proceed to purchase your home then Stonewater will end your tenancy by providing you with a minimum of 6 months notice.

Can I leave my home before the 5 years is up?

Your initial tenancy is for a fixed 18 month term with no option for either party to break without agreement of the other. If your circumstances change and you are no longer able to remain in the property, you should contact us immediately and we’ll review your request.

·· R equesting consent to make alterations to your home or to keep a pet. ·· Requests to terminate your tenancy within the fixed term. ·· Requests to add or remove Tenants from the tenancy.

Where are Stonewater offering Rent to Buy? During the next 18 months we are offering the Rent to Buy scheme in the following areas: ·· Mosterton, Dorset ·· Newhaven, East Sussex ·· South Petherton, South Somerset We have a number of sites where we are offering Rent to Buy. For further details please contact the New Homes Team on: renttobuy@stonewater.org 023 8065 8858 (option 1)

Can I move to another Rent to Buy home at the end of the 5 year term?

No, you will be unable to move to another Rent to Buy home.

What other costs are involved in Rent to Buy? You may have moving costs associated with your tenancy.

Other costs may be incurred if you decide to buy your home and will include: ·· Legal fees

I have further questions If you have questions we haven’t answered regarding the Rent to Buy scheme, please contact the New Homes team on: renttobuy@stonewater.org 023 8065 8858 (option 1)

·· Stamp Duty ·· Mortgage arrangement fees

How do I sell my Rent to Buy home in the future?

Once you have purchased your home you may sell it at any time without penalty.

If your property is leasehold then you will often be asked to provide a Leasehold Information pack as part of the conveyancing process. Stonewater are able to provide this subject to a fee which can be found at: http://stonewaterhomes.co.uk/already-own-stonewaterhome

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stonewaterhomes.co.uk 023 8065 8858 (option 1)