Is rent to buy a good option?

Is rent to buy a good option?

14:21 PM, 2nd September 2022, About 3 weeks ago

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Hello everyone, The sale of one of my rental properties fell through at exchange due to the breakdown of the chain lower down.

My buyers are still really keen to buy it but need to re-sell their property.

They are currently renting and the property they need to sell is empty but requires a bit of work. I have no mortgage on my property and although I have remarketed it, the market is changing and the offers are quite a bit lower.

The Buyers have asked if I would consider them paying a 10% deposit upfront, then renting for a year with a delayed completion in 12 months.

It seems like a good idea, since they will have invested a lump sum (£70k) and are unlikely to walk away from that.

They would also take on responsibility for all maintenance issues.

So I get the deposit, and 12 x monthly rental payments, then the rest of the money at the original agreed purchase price.

What catches should I be looking out for? Obviously I realise I need a water tight contract – any recommendations?

Thanks for your help,
Jill



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