Rent to Buy - does anyone have any experience of this?

[harcourtv57]

Whilst looking at properties in Mallorca in September, we came across some that were advertised as 'Rent to Buy'. I've looked up some info on this and on the face of it it seems like a very good idea.

Just wondered if anyone had any direct experience/knowledge of it??

Thanks

[camel]

Most of the rent to buy is being offered by Banks as part of their unsold etc stock. One has to be careful when signing any such contracts.

[Mouse]

This used to be quite common here Harcourt and I always got the impression it was a Spanish thing rather than Ibicencan...but basically you could rent a property from the owner with the intent to buy. Then when you were ready to buy the rent paid would be deducted from the sale value.

I know 2 people who bought this way.

Mouse
x

[Hells Bells]

There's a couple of people who are doing this with a high-end chalet in Briancon this winter, renting it out with an intention to buy. I assume it will depend on their chalet business being a success.

[harcourtv57]

Thanks all.

I think it started with the banks as a way of moving repossessed property, mainly from developers that had gone bust. BUt it seems to have spread into the private market - we viewed two properties who were offering this scheme but hadn't come across it before - and as Helen says, it offers the opportunity to 'try out' the lettings market in that area before commiting yourself.

Hmmmmmmmmmmmmmm

[pepsipuss]

There is quite a lot of it going on round here - mostly in blocks where virtually nothing has been sold. However I think there are lots of strings attached and one of those is usually that you are not allowed to 'sublet' - so trying out the rental market is not an option unless you want to find yourself in breach of contract.

[Wendy@NorthIdaho]

This is usually done in the US for folks that may not have the cash for a down payment, or if you aren't sure that you may be in that particular area long enough to actually buy so can get out of the lease easier also.

No doubt there are other reasons to buy like this.

Wendy

[Marks]

Very common here in this area. Unlikely you will be able to sublet. Check any contract VERY carefully.

[harcourtv57]

That was my main concern, the subletting, however both properties we viewed had been/were being used as holiday accommodation and both the owners of one and the agent assured us that we could sublet if we wanted to. But as you say have to check any contract very carefully!

[Big Sis..]

I would be VERY wary of anything an owner or agent told you..... you really need good independent legal advice[not the solicitor the agent etc recommends]
We were very lucky when we purchased in Spain, but lots of people I know have had loads of problems with contracts etc.....so check and double check!!

[harcourtv57]

The plan is to find out more and possibly revisit after Christmas, so will certainly ensure we get some independent legal advice.