In London you can plan to take a house property or can go for a rented property as per your your need and budget. For renting a house you will have to go through the below formalities.
Property Renting Rules:
The renter would pay a set amount to the seller, which is known as option fee. Along with it, the renter would also pay a rent premium which is slightly above the typical rent. There is no reason to worry, as the fee and the rent premium money would go towards the down payment of the house, when the renter purchases it at the end of the lease period. If at the end of the lease period the renter doesn’t agree to purchase the property due to any reasons whatsoever, then the seller keeps all the money that is the fee and the rent credits.
Have your dream home:
Suppose the price finalised after negotiation is $100,000, the option fee is $2,000 and a typical rent is $1,000 per month. The lease period is for 3 years.
In this case the renter would pay $1,200 per month, which is including the $200 rent premium. The renter would receive this rent premium as a rent credit every month. On a lease of 3 years the rent would earn $7,200 in rent credits and adding that to the fee the renter would have accumulated $9,200 for a down payment.
You can start investing in real estate properties. You can take a property which you can rent out to a tenant who is planning on buying the same down the road. The agreement needs to be drawn up with the help of an attorney. The agreement would involve details of the terms and conditions of the property.
The buyer and the seller need to negotiate and fix up the sale price beforehand. The sale price of the property would be final and the same would be unaffected by the rise or fall of prices in the market till the end of the lease period. The lease period would be decided before, which is generally between 1 to 3 years.