HomeNow, the innovative rent to buy scheme is now extending the scheme to benefit landlords. Originally, the scheme was established to facilitate home ownership for first time buyers unable to afford deposits.
HomeNow co-founder, Jonathan Potter: “We’re launching the new HomeNow scheme, specifically to help landlords who provide essential rental housing to the UK population. In the next 12 months, more than 25% of buy-to-let landlords plan to sell their properties in the face of increasing tax and regulatory burdens, growing mortgage costs and unmanageable repair bills. We believe this new scheme will allow them to remain in the sector”.
With this scheme, HomeNow is offering residential landlords a way to get a regular, above market income from their asset but without the headache. They will take on responsibility for all management, financing and maintenance costs of the property, while also finding tenants who care for the home. After a period of five years, the landlord will have the option to sell the property at the original agreed price.
How the scheme works.
Depending on the size of the BTL mortgage, HomeNow can provide a partial exit to investors. HomeNow will undertake the following:-
- Find a suitable resident for the property (this can be the existing tenant).
- Acquire the BTL property into their REIT
- Pay off the mortgage and associated costs
- Ensure the landlord receives a return on the money that remains in their fund, targeting a return of 8+%.
- Provide the opportunity to exit in five years.
How do landlords apply.
Landlords can apply here: https://www.homenowuk.com/homenow-for-landlords/ and will be contacted by a member of the team within 48 hours. They will subsequently be sent an offer based on the property. HomeNow will work with the existing tenant, or with their existing database of applicants to find a suitable resident for the scheme and progress with the offer.
Jonathan Potter:”Through our new landlord scheme, we can reduce costs and management burden, at the same time as increasing returns for landlords on the one hand and home ownership on the other”.