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Rent to sale initiative gives would-be buyers “Try Before You Buy” opportunity
February 05, 2009
WHEN Jamie Holmes-Brown and her partner Wayne began searching for a new, family-friendly home for themselves and their two and a half year old son Mikey in their home town of Bolton, Lancashire, they quickly realised that securing a mortgage was out of reach for the time being.
“We don’t have a large pot of money to put down as a deposit, and to be honest, in this economic climate, no mortgage lenders would even consider us,” said Jamie, 20, a customer services worker. “It was depressing because we work hard and don’t want to spend years wasting money on renting. Our priority since having Mikey is to have enough space to accommodate his growing independence – plus a garden to play in. We felt trapped because renting decent homes in good neighbourhoods is very expensive – so all our money would be swallowed up on simply paying somebody else’s mortgage – not our own! Saving up for a deposit seemed almost impossible.”
Her partner Wayne, 27, an engineer, adds, “We saw the new development being built and although we could see that the three bedroom houses we liked were for sale at an asking price of around £130,000 – we contacted Plumlife anyway to discuss our options. We were absolutely delighted when we were told that the Plumlife Rent option existed – it offered flexibility and some breathing space.”
Under the new scheme, households earning up to £60,000 per year are able to rent a new home at a discounted rate for a period of three years while building up a deposit to buy a share. Rents will be 80% or less of the real market value, with the option to buy either a share or outright later when market conditions improve.
Jamie and Wayne will pay just £420.00 rent per month (instead of the market rental value of around £600) for their modern, spacious three bedroom townhouse terrace which also boasts a downstairs loo, off street parking and generous back garden.
Sarah Parmenter
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