What is Intermediate Rent? - Pelorous


What is Intermediate Rent? - Pelorous

Your guide to:Intermediate Rentand Rent to BuyGreat homes,positive people,strong communities

What is Intermediate Rent?Intermediate Rent (IR) allows you to rent abrand new or refurbished home at less thanthe market rent.The rent you would pay is normally 20% lowerthan what you would expect to pay for asimilar home in a similar area if you wererenting from a private landlord.In the past, the IR scheme has only beenavailable to key workers (vital public-sectoremployees such as NHS nurses and doctors,police officers and teachers in state schools).However, because of the current economicclimate, this scheme is now available to otherpeople who cannot afford to buy a home oftheir own.The IR scheme is also a great option forpeople who are not ready to commit tobuying a home, who are having difficultygetting a mortgage or who cannot save upa deposit to buy through our affordablehome-ownership schemes.Rent to BuyRent to Buy is a stepping stone intoShared Ownership.Rent to Buy is a scheme offering specifichomes to rent on an Intermediate MarketRent basis for a fixed period of time (e.g. 5years) with the opportunity to purchaseunder Shared Ownership.As this scheme is designed to be the first steponto the property ladder you cannot ownanother property or land in the UK or abroad.Applicants have to be able to afford theminimum share of 25% and should be ableto provide justification as to why you cannotpurchase at this time. It may be because youdo not have enough deposit and by renting aproperty at 20% less than local market rents itwill assist you to save. The property you chooseto rent under this scheme must be a propertyyou are looking to purchase within 5 years.You can purchase the home at anytime duringthe tenancy but you will require a deposit ofapproximately 10% of the share you arepurchasing and savings for legal fees ofaround £2,000.When you come to purchase the propertyyou must meet the current HomeBuyeligibility criteria and you must also maximiseyour mortgageability.If you cease to meet the HomeBuy criteria inmost cases you will be asked to vacate whenyour tenancy expires.Please also refer to information onintermediate rent and shared ownership forthis product.1

How doesIntermediate Rent work?EligibilityYou qualify for the Intermediate Rentscheme if:• your household’s income is no more than£60,000 a year;• you cannot afford a suitable home throughone of the low-cost home-ownershipschemes or on the open market;• you are a first-time buyer, or a homeownerwho needs to move because of a change inyour family’s circumstances (in which caseyou must sell your existing property);• you are employed or self-employed andearning an income that allows you to paythe rent and related costs for the property;and• you could buy under the Shared Ownershipscheme if market conditions were different.To apply for a home through the IR scheme,contact the HomeBuy agent for your area.You can find details of your local or regionalHomeBuy agents on the website atwww.direct.gov.uk. You can find details of thehomes available and other affordable housingoptions on our website atwww.originsales.co.uk.CostsWhen you choose a home, to reserve it youwill need to pay us a reservation fee of £175.This is for administration and inventory checkat sign-up.If you think you have a poor credit history,speak to one of our staff before you reservea home.We will take the rest of the reservation feeoff the rent you must pay up front when yousign your tenancy agreement.About your tenancyYour tenancy will be an ‘assured shortholdtenancy’ for a fixed period of 12 months.With an assured shorthold tenancy, you maycontinue to live in the home for the full 12months as long as you do not break the termsset out in your tenancy agreement.Your tenancy agreement will set out your andour rights. It will contain details such as thelength of the tenancy, the rent, and what isand isn’t allowed in the property.Following sign-up of your tenancy your rentwill be collected by Direct Debit on the 1st ofeach month.2

InventoriesThe homes we offer will be in excellentcondition, with carpets and fitted appliances.To make sure that you look after your homeand keep it in a good condition, we will askyou to sign an inventory. The inventory is alegal document and forms part of thetenancy agreement.The inventory will list the condition ofeverything included in the property. Thisincludes the doors, ceiling, walls, light fittings,flooring, carpets, smoke detectors, doorframes, cupboards, door handles, extractorfans and heating appliances to name but a few.When you decide to leave the property, wewill check the condition of the items againstthe original inventory. If you leave theproperty in poor condition, we can use yourdeposit to pay towards the cost of repairs.Rent deposit schemeAs part of the Housing Act 2004, theGovernment introduced the rent depositscheme to protect the deposits paid for allassured shorthold tenancies in England andWales. From 6 April 2007, all deposits paidwill be protected within 14 days of thembeing paid. This can be up to 6 weeks rent.The rent deposit scheme aims to make surethat if a tenant has paid a deposit and isentitled to get all or part of it back at the endof that tenancy, they will actually get it back.When you pay your deposit we will hold it inthe rent deposit scheme so it is safe and youcan get it back at the end of your tenancy ifyou are entitled to it.For more information about the rent depositscheme, visit the website atwww.depositprotection.com.3

Moving into your new homeOnce we are sure that you are eligible for ahome under the IR scheme, and we receive asatisfactory reference from the referenceagency, one of our sales officers will contactyou to arrange a date for you to move intoyour new home. This will usually be three tofour weeks from the date you first viewed it.On the day you move in, we will meet you atthe property so you can sign your tenancyagreement and the inventory, pay yourdeposit, and receive your keys to your newhome. Before that date we will send you astatement to tell you the total amount youmust pay us. The amount you must pay isequal to:• the rent for the period from the date youmove in to the end of that month; plus• the next month’s rent; plus• the deposit (which will be equal to onemonth’s rent); less• the balance of the £175 reservation fee aftertaking off the reference agency’s fee.When you meet us you must give us abanker’s draft for the total amount you haveto pay.When we have given you the keys, our salesofficer will send your details to theIntermediate Rent team for your area. Theywill contact you within seven working days toarrange future rent payments and tell youwhat you should do if you have any questionsabout your tenancy.What now?To find out what IR homes are available,please visit www.originsales.co.uk.4

Our EqualOpportunities PolicyThis is what we will do:• provide and promote equal opportunities,whatever a person’s race, colour, ethnic ornational origin, religion, beliefs, sex, age,sexuality, HIV status, physical or mentaldisability, state of health, appearance,marital status, family circumstances oroffending behaviour• give all staff equality and diversity training• encourage groups and individuals thatare disadvantaged in housing andemployment, to apply for jobs, homesand work contracts• keep a record of the ethnic origin, sex,disability and age of everyone who appliesto us for a home or job• consider equal opportunities when wedecide who serves on our management board• make sure everyone we work with or whoworks for us knows about our policy andkeeps to it. If any of these people havetheir own policy, we will make sure it fitsin with ours• take into account good practice inequal opportunities when we updateour housing and employment policiesand procedures.We are committed to promoting equality and diversity.We think there is real value in having people in our workforcefrom a variety of backgrounds and with a diverse range ofexperiences and abilities. We are dedicated to providingservices to all sections of the community and we expecteveryone who works for us to support us in this.5

Our Service PromiseCommunicating with you• We aim to provide an excellent service forall of our customers• If you’re not happy with any aspect of ourservice, please let us know and we’ll try toput it right. We have a complaints’ formwhich we can send you if you want to putyour complaint in writing• We welcome your comments - good orbad - as a way of letting us know what weare doing right or wrong. This helps usimprove our service to you. Our detailedservice promise is available on request.Our Performance StandardsWe aim to:• answer your telephone calls within20 seconds• reply to your letters within tenworking days• give you a decision on whether yourapplication has been accepted withinfive working days• respond to telephone messages within24 hours. (This is due to the fact our SalesOfficers are often out of the office atviewings and may not be able to answeryour call immediately)We have an equal opportunities policyand do not treat any applicant for SharedOwnership less favourably becauseof their race, colour, gender, disability ormarital status.Buying your homeWe promise to:• explain the whole process to you clearlybefore you buy your new home;• provide you with a free financial interviewand access to mortgage advisors; and• guide you through every step of buyingyour home.We ask you to:• go to all presentations and appointmentswe have invited you to;• be honest about your financialcircumstances; and• contact us regularly throughoutthe process.Your home is at risk if you fail to keep up payments on any mortgage, rent or other loan securedon it. Please make sure you can afford the repayments before you take out a mortgage.6

For more information call 0800 068 8990sales@originhousing.org.ukwww.originsales.co.uk

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