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Frequently Asked Questions

Why HomeNow?

How does HomeNow work?

1. You find a house you want to call home 2. You approach HomeNow who conduct some checks on both you and the property 3. HomeNow buys the property and pays all the purchase fees 4. You rent the property from HomeNow for 5 years and your rent is fixed for those 5 years 5. After 5 years renting you share in the property value increase. You will receive one third of the increase in value via a rent refund 6. You can use your share of the increase in value as a contribution towards the deposit to buy the home you have been renting, or move out and use the rent refund as a contribution towards a deposit on a different property



Do I need a deposit to join the HomeNow scheme?

Yes, but not a typical house purchase deposit. As a renting tenant you will be required to provide a standard tenancy security deposit. This is equivalent to 4 weeks rent and will be held safely in a government approved tenancy deposit scheme.



Can I rent with a partner or friend?

Yes. You are also allowed to sublet a room should you want to, but this will require permission from us and in the case where you sublet, you alone are responsible for the property.



How does it work?

How does HomeNow work?

1. You find a house you want to call home 2. You approach HomeNow who conduct some checks on both you and the property 3. HomeNow buys the property and pays all the purchase fees 4. You rent the property from HomeNow for 5 years and your rent is fixed for those 5 years 5. After 5 years renting you share in the property value increase. You will receive one third of the increase in value via a rent refund 6. You can use your share of the increase in value as a contribution towards the deposit to buy the home you have been renting, or move out and use the rent refund as a contribution towards a deposit on a different property



Do I need a deposit to join the HomeNow scheme?

Yes, but not a typical house purchase deposit. As a renting tenant you will be required to provide a standard tenancy security deposit. This is equivalent to 4 weeks rent and will be held safely in a government approved tenancy deposit scheme.



Can I rent with a partner or friend?

Yes. You are also allowed to sublet a room should you want to, but this will require permission from us and in the case where you sublet, you alone are responsible for the property.



Am I eligible?

What is the income criteria to qualify for the scheme?

There is no defined criteria but you must be able to satisfy HomeNow affordability checks. This is where we look at your household income and monthly expenditure to help us understand what level of rent you can afford to pay each month.



What information will I need to provide?

As part of the process, we will require the following information from you: · Your household income · Proof of employment with historical payslips · How your household income is split if you’re buying with a partner · Number of dependants · Your credit score (your permission is required for us to source this) · Prior landlord references if applicable · Details of your monthly expenditure, along with bank statements



How do you work out what I can afford to pay each month?

We will use a combination of your joint household income and your mnthly expenditure to determine what you cann afford to pay in rent. As a general rule, we would not allow the monthly rental payment to be more than 40% of your gross combined income.



Choosing the property

With HomeNow, can I choose the property?

Yes - You get to choose the house you want to live in as long as you can afford the agreed fixed monthly cost. You will likely find the property you want via an estate agent or online property portal.



With HomeNow, can I choose ANY property?

No, you can’t choose any property. There are certain criteria that we look for to ensure the property has the best possible chance to increase in value (in line with market expectations) over the 5 year tenancy period. The basic criteria are as follows: - Freehold, leasehold or share of leasehold single family properties with no renovation requirements - Site built homes (no mobile homes, boats or pre-fabricated) - The house must be sold vacant (i.e. no sitting tenant...you can understand why!) - Location: We look for property with the below attributes -

  • Commutable to the nearest big town / city
  • Good transport links (i.e. near a major motorway, train station, etc.)
  • Good schools
  • Access to good local facilities / amenities



What is “freehold” / "leasehold"?

When you buy a property, it will be either on a freehold or a leasehold basis. Freehold is the outright ownership of the property and the land on which it stands. A freehold estate in land (as opposed to a leasehold) is where the owner of the land has no time limit to the period of ownership. Leasehold is a method of owning property for a fixed term, but not the land on which it stands. Modern leases are usually 125 years or more, but they can be much shorter. Possession of a leasehold property is often subject to the payment of a small annual ground rent. When the lease expires, ownership of the property reverts back to the freeholder. Flats will always be leasehold, sometimes owned by all the leaseholders and sometimes by a third party freeholder.



Does the property have to be a new build?

No, the property does not have to be new build. As a general rule, the newer the property the better as there are less likely to be any maintenance issues with a new property versus an older one.



What makes HomeNow different?

How does HomeNow work?

1. You find a house you want to call home 2. You approach HomeNow who conduct some checks on both you and the property 3. HomeNow buys the property and pays all the purchase fees 4. You rent the property from HomeNow for 5 years and your rent is fixed for those 5 years 5. After 5 years renting you share in the property value increase. You will receive one third of the increase in value via a rent refund 6. You can use your share of the increase in value as a contribution towards the deposit to buy the home you have been renting, or move out and use the rent refund as a contribution towards a deposit on a different property



Do I need a deposit to join the HomeNow scheme?

Yes, but not a typical house purchase deposit. As a renting tenant you will be required to provide a standard tenancy security deposit. This is equivalent to 4 weeks rent and will be held safely in a government approved tenancy deposit scheme.



Can I rent with a partner or friend?

Yes. You are also allowed to sublet a room should you want to, but this will require permission from us and in the case where you sublet, you alone are responsible for the property.



Living in the property 

Do I sign a standard Assured Shorthold Tenancy (“AST”) Agreement?

Yes, you will sign an AST Agreement. The main difference is it will be for a 5 year term instead of the usual 1, 2 or even 3 years you will be used to seeing. From your perspective it provides security of tenure and, as the monthly amount you pay is fixed for the 5 year term , you can manage your budget knowing there will be no unforeseen increases in rental payments.



Do I own the property?

No, for the 5 year term of the tenancy agreement you are a tenant and you do not own any part of the property. It is at the end of this 5 year term we share the increase in value with you (via a rent refund). You can then use your share as a contribution towards the mortgage deposit to either buy the property you have been living in for 5 years, or buy another property of your choice.



Can I make modifications to the property?

Yes, with our permission we would be happy for you to make cosmetic modifications. We want you to view this as your home, so you can paint the walls, change the carpet and nail up your favourite pictures, no problem at all. These are what we call aesthetic changes. The only things you can’t do are structural changes, changing the kitchen or building an extension. Building work can be problematic and doesn’t always go to plan. The good news is you shouldn’t really need to make structural changes because we only buy homes where you can move in straight away.



Who is responsible for paying for any repairs?

As per the Assured Shorthold Tenancy Agreement, we are responsible for repairs to certain items including: - electrical wiring - gas pipes and boilers - heating and hot water - chimneys and ventilation - sinks, baths, toilets, pipes and drains - the structure and exterior of the building, including walls, stairs and bannisters, roof, external doors and windows. It is your responsibility to notify us as soon as you notice any issue that requires our attention. However, in return for us sharing the increase in house price with you, we do expect you to look after the property. If you decide you would like us to carry out any maintenance to the property (including to the above listed items), we reserve the right to deduct the cost from your share of the increase in house value. Before we buy any property, it will undergo a survey and so we will be very aware of potential issues that may incur a cost over the 5 year tenancy period (and if there are any issues, we would be unlikely to purchase that property). We will also take out buildings insurance to cover any major issues.



Can I have a pet in the property?

Yes.



Buying the house after five years

What is the income criteria to qualify for the scheme?

There is no defined criteria but you must be able to satisfy HomeNow affordability checks. This is where we look at your household income and monthly expenditure to help us understand what level of rent you can afford to pay each month.



What information will I need to provide?

As part of the process, we will require the following information from you: · Your household income · Proof of employment with historical payslips · How your household income is split if you’re buying with a partner · Number of dependants · Your credit score (your permission is required for us to source this) · Prior landlord references if applicable · Details of your monthly expenditure, along with bank statements



How do you work out what I can afford to pay each month?

We will use a combination of your joint household income and your mnthly expenditure to determine what you cann afford to pay in rent. As a general rule, we would not allow the monthly rental payment to be more than 40% of your gross combined income.



What if circumstances change?

What happens if I want to leave before the 5 year term is finished?

This is a 5 year tenancy, and you should approach this with a view that you will be in the property for at least 5 years. We do however understand that people's circumstances may change. Therefore, after the first 2 years of the tenancy, you may, in the circumstances specified below, end the Tenancy early by giving at least 3 months’ notice in writing:

  1. You have been unemployed for a period exceeding 6 months
  2. You are diagnosed with a serious illness or disability
  3. You are required to relocate for work and cannot reasonably be expected to commute from the Property
We encourage you to notify us of any change in circumstance as soon as you are made aware of it. It is important to stress, you must avoid breaching the terms of the Assured Shorthold Tenancy agreement. If you do breach the terms (and no remedial action is taken), you will be evicted, you will be liable for any rent remaining on the 5 year term and you will lose any right to the increase in value of the property.



Who is HomeNow?

Who is BOMAD Investments Limited?

HomeNow is the trading name of BOMAD Investments Limited. BOMAD Investments Limited is registered with the Financial Conduct Authority as an Alternative Investment Fund Manager. BOMAD Investments Limited manages the investment fund that ultimately buys the property you will move into.



Is BOMAD Investments Limited regulated by the Financial Conduct Authority?

Yes, BOMAD Investments Limited is authorised and regulated by the Financial Conduct Authority (No. 822295). Our full scope of permissions are listed on the FCA's Financial Services Register. You can find more information on our permissions here



What happens if HomeNow goes into liquidation or falls into receivership or administration?

Your property is not owned by HomeNow. It is owned by a separate company (owned by our investors) specifically set up to buy your property. We (HomeNow) do not have any recourse to the assets or income streams of this ring fenced company. You will be able to continue to rent your property.



Refer a friend

With HomeNow, can I choose the property?

Yes - You get to choose the house you want to live in as long as you can afford the agreed fixed monthly cost. You will likely find the property you want via an estate agent or online property portal.



With HomeNow, can I choose ANY property?

No, you can’t choose any property. There are certain criteria that we look for to ensure the property has the best possible chance to increase in value (in line with market expectations) over the 5 year tenancy period. The basic criteria are as follows: - Freehold, leasehold or share of leasehold single family properties with no renovation requirements - Site built homes (no mobile homes, boats or pre-fabricated) - The house must be sold vacant (i.e. no sitting tenant...you can understand why!) - Location: We look for property with the below attributes -

  • Commutable to the nearest big town / city
  • Good transport links (i.e. near a major motorway, train station, etc.)
  • Good schools
  • Access to good local facilities / amenities



What is “freehold” / "leasehold"?

When you buy a property, it will be either on a freehold or a leasehold basis. Freehold is the outright ownership of the property and the land on which it stands. A freehold estate in land (as opposed to a leasehold) is where the owner of the land has no time limit to the period of ownership. Leasehold is a method of owning property for a fixed term, but not the land on which it stands. Modern leases are usually 125 years or more, but they can be much shorter. Possession of a leasehold property is often subject to the payment of a small annual ground rent. When the lease expires, ownership of the property reverts back to the freeholder. Flats will always be leasehold, sometimes owned by all the leaseholders and sometimes by a third party freeholder.



Does the property have to be a new build?

No, the property does not have to be new build. As a general rule, the newer the property the better as there are less likely to be any maintenance issues with a new property versus an older one.



Other

How does HomeNow work?

1. You find a house you want to call home 2. You approach HomeNow who conduct some checks on both you and the property 3. HomeNow buys the property and pays all the purchase fees 4. You rent the property from HomeNow for 5 years and your rent is fixed for those 5 years 5. After 5 years renting you share in the property value increase. You will receive one third of the increase in value via a rent refund 6. You can use your share of the increase in value as a contribution towards the deposit to buy the home you have been renting, or move out and use the rent refund as a contribution towards a deposit on a different property



Do I need a deposit to join the HomeNow scheme?

Yes, but not a typical house purchase deposit. As a renting tenant you will be required to provide a standard tenancy security deposit. This is equivalent to 4 weeks rent and will be held safely in a government approved tenancy deposit scheme.



Can I rent with a partner or friend?

Yes. You are also allowed to sublet a room should you want to, but this will require permission from us and in the case where you sublet, you alone are responsible for the property.