Rent to buy? Rent with the future purchasing of the property? Here are some practical examples!
Just a few years ago the term “rent to buy” proved totally new and, as often happens, public opinion was split between those who saw it as the savior of the real estate crisis, which invested Italy at that time, and who saw it with the fear that the innovations always generate.
A distance of too many years, now, the crisis is still not completely gone and there is a maturity of information such that we can understand if the rent to buy is actually a valid solution.
I state that there is not only the rent to buy as formula “help to buy”, but long before he entered there similar formulas or comparable to it. Each formula is suited to a specific case and it is on this that I would like to focus.
REAL ESTATE LEASING
The real estate leasing consists of a financing transaction that allows the user to obtain the use of a property and to purchase, at the end of the expected life, the property, thanks to funding made available to him by a person entitled to credit ( the lessor) against payment of periodic payments and the redemption price.
RENT WITH REDEMPTION
The rent with redemption is a way of installments, in whole or in part, the price of the house.
RENT TO BUY
The rent to buy (called by the English name also in Italian) is a purchase preparatory program, which gives the potential buyer time to align itself to the parameters required by the banks for granting a mortgage.
That is, prospective buyers who are unable to access a mortgage immediately. With the payment of the rent with this formula, they can create a history of payments to reassure the bank on their trustworthiness as a paying.
The fee paid monthly, will be divided between rental fee and purchasing fee. Within the period established by the contract, the tenant will have the right to buy the house, but not the obligation. If you decide to buy the property, the agreed amount will be discounted the only purchase fees paid, while the rental fees will be “lost” as in any rental agreement. If he, conversely, decide not to purchase will be entitled to a refund of the purchase shares that will not be retained by the vendor.
I fear that what I have explained is not clear to you. This why we speak of technical and very difficult terms. If you want to use one of these formulas, contact a professional who will explain the differences between these formulas.
In Italian there are sources that will surely advise you to consult, are written by the board of notaries and they are really well done, you can download the pdf by clicking on the following link
The notary Vanina Gatti held a conference about at the headquarters of Verbania of the Italian Federation of Professional Estate Agents, you can find the slides of her course (in Italian) at the following Rent to Buy conference Notary Gatti (in Italian)
Finally I suggest to you another article I wrote, in English 10 Things to know on Rent to Buy in Italy
For any information about the process of buying a house in Italy, write to firstname.lastname@example.org, I will be happy to answer your questions.
Alice – www.ortalloggi.com
Here are some articles (in Italian) that may be useful for you: