Rent with ransom: how to buy a house if they do not give you the mortgage
We hear more and more often about the possibility of buying a home through rents. Faced with this tendency it is natural to ask oneself about the goodness of this choice. Why is rent with ransom a good option to buy a house?
More than an option, buying with ransom seems to be a necessity in the current real estate market crisis.
The loan applications continue to fall and consequently also the property sales. In fact, banks today are much more cautious than in the past in granting loans to customers and budgets are limited. Yet this could really be a excellent time to buy a house, by virtue of the write-downs that the properties have undergone in recent years due to the static nature of the market.
VAT number holders and small business owners certainly have a much harder time obtaining a mortgage because they are considered a riskier category by credit institutions. In addition it seems that the lowering of rates by the European Central Bank is benefiting only banks, and not citizens.
In this situation, therefore, rent with ransom emerges as an interesting alternative. In the formula of rent with ransom, the mortgage request is substantially avoided, and in other countries this possibility is already much more widespread than in Italy, even if there has been an increase in recent times also in Italy.
In Italy, rent with ransom is a particularly chosen solution in the northern regions such as Lombardy, Emilia Romagna, Piedmont and Veneto.
But let’s see what the rent with ransom consists of.
Rent with ransom: what is it?
Rent with redemption requires the stipulation of two contracts, or a rental contract, generally with a higher monthly fee than the market average, and a second contract called the option contract. In the rent with redemption the option contract offers the tenant the possibility of buying the house, generally after a period of three years or as otherwise agreed, at a price already established at the time the contract is stipulated.
Clearly, the rents paid up to that point will be deducted from the price set for the rent with redemption.
Rent with redemption therefore turns out to be a good possibility, especially if you are unable to obtain a mortgage at that moment, or if you wish for some reason to postpone the stipulation. In addition, the IMU tax will be paid by the owner for the entire period of validity of the rental contract. Another consideration to make about the rent with ransom is related to the price. Since the price agreed at the beginning of the rental contract with redemption, and remaining this blocked until the end of the lease, it may happen that, at the time of the sale, the selling price can be both higher and lower than the market average, because this depends on the situation of the real estate market of that moment.
Consequently the price could be advantageous or disadvantageous.
At the time of writing, at a time when prices are quite low, it may be appropriate to opt for rent with ransom.
Rent with redemption: where to find the funds
Does redemption purchase represent an interesting opportunity for you?
If you are interested in buying a home through this option and want to request more information for a loan, fill out the form for requesting a quote : within 24 hours one of our consultants will contact you to export – totally free – the solution that best suits your needs.