Rent To Buy 

Rent To Buy (Rent To Own) 

FAQ’s for Rent To Buy?

Do you accept all types of property?

We currently accept houses in England & Wales that can be occupied straight away
and do not require refurbishment or renovation to meet a liveable standard. At present, we are not yet buying flats or leasehold properties, but we hope to be doing this in the near future.

How long will it take between applying and moving in?

We buy properties quicker than most individuals as we have efficient processes and
in-house specialists. However, property purchases can be subject to unforeseen
delays that we can’t predict. We’ll keep in regular contact with you every step of the
way so you know what is happening.

What happens if I can’t pay my monthly payments?

We do our best to make sure your monthly payments are affordable before you sign
the agreements and move in. Please get in touch if you find yourself with financial
challenges, as we will try to work out ways to support you.

What happens if the sale falls through?

If the purchase of your home falls through you can look for an alternative home and
you don’t need to re-apply. Depending on the reason for the sale collapsing your
£999 survey and valuation fee can be transferred to your next property so you won’t
need to pay it again. This is not the case if you decide pull out of the purchase for
any reason.

What are the basic eligibility criteria?

You will need to be over 18 and have the right to live in the UK. We will also do an
industry-standard check on you using secure and modern technology including:
• Verifying your income and outgoings (using Open Banking)
• Checking for fraud and bankruptcy (using Credit bureaus)
• Reference checks with landlords and employers
Are there any hidden fees?
• No, there are no hidden fees when you buy a home with Keyzy. We charge an
up front survey and valuation fee of £999 when you have an offer accepted on
your chosen home.
• We also charge a £1,999 product fee before you get your keys and move in.
• There is a 2% early exit fee if you buy your home from us before the end of
your agreed lease. There’s a 2% early exit fee if you chose to sell the home to
another buyer.
• Your monthly payments stay the same for the full duration of your lease. No
increases.

Do I need a perfect credit score?

No. But we do take into account your income and spending behaviour over the past
year to make sure you can afford the monthly payments and are not likely to miss
any payments.

We don’t accept applicants who have entered an IVA or Bankruptcy in the last years,
nor any missed rental or mortgage payments in the last 12 months, or Defaults and
County Court Judgements in the last 12 months over value £250.

If you end up getting a home with Keyzy we will also report your rental payments to
Equifax. This means that your rental conduct could improve your credit position and
credit score. This can make it easier to obtain credit on better or preferential deals
and more likely to be accepted. It can also mean Banks and Mortgage Lenders can
see your rental conduct without having to ask for documentation and can help
secure the best mortgage deals available.

Do you run a credit check?

We run a soft credit check with a credit referencing agency to ensure suitability.

How do you decide how much of my rent is converted?

Up to 25% of your rent is converted towards reducing your future buy-back price.
This might be a lower percentage based on your ability to afford the monthly
payments.

Can I add my savings as a deposit?

Keyzy is a zero deposit solution. If you have savings, you can keep them and keep
growing them. When it’s time to buy the home from us you can use your savings to
increase your deposit.

Do I need to get legal advice?

Yes. Just like when buying a home, you will need to talk to a solicitor to guide you
through the legal documents before signing. We will offer a panel of solicitors for
you to choose from to help. This will be at your cost.

Can I get help from family?

This is not currently offered but if you think your family could act as a guarantor feel
free to contact Keyzy and we will do our best to assist you.

I’m not a First Time Buyer, is Keyzy still for me?

Of course. Keyzy is designed to assist where a mortgage cannot, and is not
exclusively for First Time Buyers.

How many people can apply with me?

We currently accept up to 2 applicants. Please get in touch if you would like to apply
with 3 or more applicants.

I’m married, do we both need to be on the application?

If you are married or in a civil partnership you will need to add your partner to the
application. This is because you are financially linked, and most mortgage
companies will want to do this when it is time to buy. If your partner is not working or
receiving an income, they will still need to be on your application.

I have several income sources. Will this be an issue?

We accept multiple income sources when determining a budget and your monthly
payments, including salary, bonus, commission, benefits and other income sources.
For us to accept an income source, you will need to have been receiving it for at least
3 months. For example, if your recently changed jobs you will need 3 months salary
payments to qualify.

I’m self employed. Will it be difficult to get approved?

As long as you meet the eligibility criteria and our checks on you and the property are
good, so are you!
You will need a minimum of 12 months self-employment for it to be considered as
income.

I have a few late payments on my record, will this effect my application?

We take your full financial circumstances into account when deciding your offer.
Late payments might have an impact depending on how many, how much and what
they were for.

Who is responsible for maintenance of the home?

Keyzy will be responsible for any insurable costs such as storm damage or burst
water pipes. We also make sure you have your gas and electrical safety certificates.
You are responsible for wear and tear and day-to-day upkeep of the home.

Will my rent increase or decrease?

We fix your rent for the full duration of the lease. No increases. If at the end of your
lease you are not yet ready to buy the home with a mortgage you can sign another
lease with us and keep reducing your buy-back price. At this stage we may change
your payments to reflect rental market conditions.

How long is the lease I sign? 

The lease will be between 3 to 7 years, but is typically for 4 years with an option to
sign another lease at the end up to a maximum of 8 years. For example, if your first
lease is 4 years and you are not ready to buy the home at the end you can extend for
another 4 years. The longer your lease the more you reduce the price you pay for the
home at the end. You can leave your lease at anytime if you find another buyer. You
can keep any gain in home value and will need to pay a 2% early exit fee.

Who owns the property and who pays for it?

Keyzy buys the property for you and remains the owner until you are ready to buy it
from us.

Do I need to pay for buildings insurance?

No. Keyzy is responsible for buildings insurance until you buy the home, as we are
the landlord.

Who pays for stamp duty and do I get a discount?

Keyzy pays the stamp duty up front when we buy the home. This forms part of your
locked-in price. For example, if we buy a home worth £200,000 it might cost us a
total of £215,000 to complete the purchase including stamp duty and legal costs. To
buy the home from Keyzy you will need to pay £215,000 minus any converted
payments you’ve already made. You will also need to pay stamp duty to buy the
home later. If you are a first time buyer you will be able to take advantage of any
discounts offered at the time.

What are my rights as a renter?

You can stay in the property for the full duration of your lease as long as you make
your monthly payments, like a traditional rental agreement (assured shorthold
tenancy).

Can I make additional overpayments?

No. Your converted payment amounts are fixed for the duration of your lease.

What happens if I want to move somewhere else?

At the end of your lease you are free to leave, but we still want you to get any
potential increase in the property value. You can find a buyer for the home at any
time during your lease, and keep all the upside. You just need to make sure it is sold
at a price equal or above the original purchase price including out costs. You also get
up to 25% of your rental payments back (minus an early exit fee of 2% for selling the
home).

How much do I pay Keyzy to buy the home?

If you choose to buy, the price you pay will be made up of the original purchase price
we paid for the home plus our costs (e.g., stamp duty and legal fees). This price is
agreed before your lease starts. Each month, up to 25% of your rent payments go
towards reducing the eventual price you pay. In other words, your purchase price can
go down over time.

What’s the difference between the Locked-in price and the Future Buy-back price?

The Locked-in price is the price we pay to buy the property including stamp duty and
legal fees. If the value of the property goes up, it does not affect the price you pay to
buy it from us.
The Future Buy-back price is the price you pay to buy the home from Keyzy. This is
calculated by taking your Locked-in price and reducing it by your accumulated
converted payments. You can buy the property at any point for Locked-in price minus
your accumulated converted payments.

How do you decide the Future Buy-Back price?

Your future buy-back price will be made up of the locked-in price (the price we paid
to buy plus stamp duty and legal fees) and then reduced by your accumulated
converted payments. If you choose to buy the home before the lease ends, the buyback price might be higher as you won’t have accumulated as much in converted
payments.

What if the home is worth less at the end of the lease?

Your option to purchase the property remains intact, even if the property decreases
in value. Subject to approval, the lease can be extended so you can continue working
towards owning your home.

What if I can’t get a mortgage at the end of the lease?

You may be able to extend your lease agreement (up to a combined maximum of 10
years) while you get ready to buy. If you still can’t get a mortgage you can find
another buyer and walk away with the gains (if the property value has increased).

How does Keyzy make money?

Simple, we make money from your monthly payments. You keep your converted
payments and any gain in the property value, if there is one, when it’s time to buy it
from us.

Is Keyzy regulated?

Keyzy’s offering does not fall within the scope of financial services regulation. You
should ensure that you understand what this means before you use the Keyzy
product. The FCA guidance on dealing with non-regulated bodies is that all risks and
benefits must be explained. We insist every client has independent legal advice
before entering into a contract so you understand the proposition and the risks and
benefits associated with it.

How is this different from a mortgage?

Keyzy buys your home for you to live in. You don’t pay us interest like a mortgage.
Instead you pay Keyzy rent while you get ready to buy. At the end of your lease with
Keyzy you may need a traditional mortgage to buy the home.

What is the difference between this and shared ownership?

There is only one party who owns the home -Keyzy. You have an exclusive
contractual right to buy the home from Keyzy at the end of your lease, or anytime
before subject to a small fee. Shared ownership means multiple parties own
different proportions of a property, and the value is shared proportionately as the
price goes up or down.

What happens if Keyzy goes bust?

In the unlikely event that Keyzy goes bust, our lenders will take over ownership of the
property from us. You can continue renting the home until the end of the lease period
and the sale/purchase of the property. If Keyzy’s lenders choose to sell the home,
you receive the proceeds from the sale to cover your converted rent as well as some
of the upside depending on sale price. You also get right of first refusal to buy the
home at market value.

Expert advice is available, without obligation. Contact us now

This scheme is available through ourselves WITHOUT a waiting list,  as a preferred broker we get immediate access. Contact us now via the form at the top of the page, we’ll help you get a decision / budget in principle.

Completing this form authorises us to send your details to Keyzy.

Important

Applicants that use ourselves will be actioned immediately. By all means go look at their website, to look at details, use their calculator etc, given below. But come back here to apply for a decision in principle. As we are a preferred broker you will  be dealt with immediately.

Use the contact form above. We’ll then get the required information from you. Whilst Keyzy charge an arrangement fee (see below), our services are free of charge as we receive a small commission from Keyzy for the work involved in getting the Decision In Principle and the referral.

Available nationwide.

Traditional mortgages inc 95% are available too including for First Time Buyers

We also have access to 100% mortgages, with or without family assistance. Which may be more suitable for you. Contact us to discuss fully.