Is there such a thing? Rent to buy

Rent to Buy is a term used for many things, it is not descriptive and dosen't really mean anything from a legislative point of view. Our solicitor has advised to never use the words as they are contentious!

Lease with an option to purchase is more descriptive. It describes taking out a residential tenancy agreement on a property along with an option to buy it! There is no room for ambiguity!

Vendor will finance deposit is another term that is more descriptive and means that the vendor is willing to carry back a second mortgage on the deposit so that the puchaser can buy the property with no money down. This process is also sometimes called "rent to buy"

A wrap around mortgage is also sometimes called "rent to buy"

So to answer your question, NO rent to buy does not really exisit!!!

Hi rejoice

As a very general rule, Vendor Financiers usually use the term Rent To Own if they are panning to sell a property with a Residential Lease and an Option to Purchase (also known as a Lease/Option).

If we are planning to sell a property with an Instalment Sales Contract (sometimes called a Wrap), we'll usually use a small add with the header "Owner Will Finance"or "No Bank Qualifying" or something similar.

If we are planning to sell by offering a second mortgage to finance the buyers deposit, you'll often see our ad header as something like "No Deposit Required".

I take Xenia's solicitor's point but if Vendor Financiers where to stop using these simplistic terms and move to the more technically correct ones would anyone know what the heck we are talking about.  Should we insist that the To Let sections of  the classifieds be changed to "Offers for Residential Tenancies"

Cheers,  Paul