HomeNow is a rent to buy home purchase scheme that aligns the interests of residents (tenants) with the interests of HomeNow (the landlord).
The business seeks to offer a viable alternative to the ‘bank of mum and dad’, as well as other more established purchasing options, that work for all parties.
HomeNow is focused on helping residents get on the property ladder by buying a home and subsequently renting it to them at a fixed price for a five-year period. Residents receive one third of the increase in value during their tenure, to use as a contribution towards the mortgage deposit when they come to buy the property.
The business currently has properties in the scheme across Kent, Surrey, Essex and The Midlands. Prices range from £150,000 to £400,000.
Jonathan Potter, co-founder of HomeNow explains: “The idea is that residents should feel like homeowners as they are earning equity and ultimately, will hopefully own the property themselves. However, they will still receive the equity if they don’t decide to buy.”
Initially, residents source the property they want to live in and then approach HomeNow. Once HomeNow has approved the property, they will carry out the necessary negotiations with the vendor, proceed with the purchase; paying the stamp duty, legal and conveyancing fees, and then become the landlord. HomeNow complies with all landlord obligations such as gas safety and electrical checks, in line with traditional tenancies.
Jonathan Potter: “We are very keen that from the beginning residents should treat the properties as if they are the owners, that includes decorating and home improvements. We conduct annual inspections to ensure the property is being well maintained but other than that, the residents have full autonomy.”
A key advantage of the scheme, especially given current volatility in the rentals market with rising rents and the cost-of-living challenges, is the security it gives over the five-year period. Residents are locked in for the initial five-year period, removing an entire layer of worry. This is especially appealing to anyone currently spending a disproportionate amount on rent, without having adequate funds for a mortgage.
Gareth Ship, COO: “We firmly believe that the HomeNow scheme is reforming home ownership in the UK and in doing so, will contribute to a new generation of homeowners.”