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Frequently Asked Questions

Why HomeNow?

What does HomeNow do?

HomeNow gives a real boost to renter's ability to get on the housing ladder. HomeNow purchase houses for people who don't have enough money for a typical mortgage deposit. The ideal family home is bought and held on their behalf in our HomeNow fund. The person rents the property from the fund and, after five years, benefits from a third of the increase in value of the property (received via a rent refund). This will contribute towards a deposit, either to purchase the house you have been living in or any other property you wish to move to. On top of sharing the increase in value, our tenants

  1. Choose the property they want to live in - you are not restricted to picking from homes for rent, instead you look at homes for sale
  2. Receive security of tenure - your Assured Shorthold Tenancy agreement is for a period of 5 years, there is no more concern you will be asked to move on just when you have become settled in an area
  3. Receive financial security - your rent is fixed for 5 years. This means you will know what your biggest expense will be for the next 5 years



Why is this needed?

Many people find their rental costs take up so much of their monthly income, it is nearly impossible to save for a deposit required by mortgage lenders. This is commonly referred to as the “Rent Trap”.



Who is it HomeNow can help?

Many people may be in a position to afford the monthly cost of a mortgage, though are currently renting and are unable to save up for the deposit they would need to buy a house. These are some of the people we are looking to help.



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?

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.



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?

What does HomeNow do?

HomeNow gives a real boost to renter's ability to get on the housing ladder. HomeNow purchase houses for people who don't have enough money for a typical mortgage deposit. The ideal family home is bought and held on their behalf in our HomeNow fund. The person rents the property from the fund and, after five years, benefits from a third of the increase in value of the property (received via a rent refund). This will contribute towards a deposit, either to purchase the house you have been living in or any other property you wish to move to. On top of sharing the increase in value, our tenants

  1. Choose the property they want to live in - you are not restricted to picking from homes for rent, instead you look at homes for sale
  2. Receive security of tenure - your Assured Shorthold Tenancy agreement is for a period of 5 years, there is no more concern you will be asked to move on just when you have become settled in an area
  3. Receive financial security - your rent is fixed for 5 years. This means you will know what your biggest expense will be for the next 5 years



Why is this needed?

Many people find their rental costs take up so much of their monthly income, it is nearly impossible to save for a deposit required by mortgage lenders. This is commonly referred to as the “Rent Trap”.



Who is it HomeNow can help?

Many people may be in a position to afford the monthly cost of a mortgage, though are currently renting and are unable to save up for the deposit they would need to buy a house. These are some of the people we are looking to help.



Living in the property 

How do I know you will sell the house to me?

As well as the Assured Shorthold Tenancy Agreement, you will also sign an Option Agreement. If the house reaches a certain value (one that ensure our investors will receive their investment back - the "Investment Value") this document legally entitles you to purchase the property, should you decide to do so. Only if you decline the offer to buy the property are we then able to offer the property for sale on the open market.



How do you come up with the valuation?

The parties (i.e. you and us) will use all reasonable endeavours to promptly agree the market value of the property. If this has not been agreed within 10 working days of the service of the Option Notice, the matter will be referred to an Expert (being an independent chartered surveyor with at least ten years' experience in valuing properties similar to the property(s) in question and who is a Member or Fellow of the RICS).



What happens if house prices go down?

After 5 years, if the price of the house is lower than the property was originally purchased for, there will be no rent refund distributed to you. In this instance, and shortly before the end of your 5 year tenancy, we will consult with our investors and assess the ability of our fund to extend your tenancy. If our investors agree to an extension there will be a new tenancy agreement (with a new rent figure fixed for the duration of the new agreement) for a period of time that it is hoped will allow the property value to increase and for us to then share that increase with you via a rent refund. Alternatively, at the end of the 5 year tenancy you are of course free to leave the property.



What happens if the house price has not increased enough after 5 years?

Where the property value is agreed to be below the Investment Value (see "What happens if house prices go down?"), we will consult with our investors and assess the ability of our fund to extend your tenancy. If our investors agree to an extension you will be given the option to stay in the house for an additional period of time, until the house has increased sufficiently in value for our investors to recoup their initial investment. This will be a new agreement and your rent will be reviewed and fixed for the same period as the new Assured Shorthold Tenancy agreement.



Why does this need to be a 5 year term?

HomeNow investors have a minimum investment period of 5 years. Additionally, historical data suggests 5 years is the median amount of time to ensure you, the tenant, generates a minimum 5% deposit.



Buying the house after five years

How do I know you will sell the house to me?

As well as the Assured Shorthold Tenancy Agreement, you will also sign an Option Agreement. If the house reaches a certain value (one that ensure our investors will receive their investment back - the "Investment Value") this document legally entitles you to purchase the property, should you decide to do so. Only if you decline the offer to buy the property are we then able to offer the property for sale on the open market.



How do you come up with the valuation?

The parties (i.e. you and us) will use all reasonable endeavours to promptly agree the market value of the property. If this has not been agreed within 10 working days of the service of the Option Notice, the matter will be referred to an Expert (being an independent chartered surveyor with at least ten years' experience in valuing properties similar to the property(s) in question and who is a Member or Fellow of the RICS).



What happens if house prices go down?

After 5 years, if the price of the house is lower than the property was originally purchased for, there will be no rent refund distributed to you. In this instance, and shortly before the end of your 5 year tenancy, we will consult with our investors and assess the ability of our fund to extend your tenancy. If our investors agree to an extension there will be a new tenancy agreement (with a new rent figure fixed for the duration of the new agreement) for a period of time that it is hoped will allow the property value to increase and for us to then share that increase with you via a rent refund. Alternatively, at the end of the 5 year tenancy you are of course free to leave the property.



What happens if the house price has not increased enough after 5 years?

Where the property value is agreed to be below the Investment Value (see "What happens if house prices go down?"), we will consult with our investors and assess the ability of our fund to extend your tenancy. If our investors agree to an extension you will be given the option to stay in the house for an additional period of time, until the house has increased sufficiently in value for our investors to recoup their initial investment. This will be a new agreement and your rent will be reviewed and fixed for the same period as the new Assured Shorthold Tenancy agreement.



Why does this need to be a 5 year term?

HomeNow investors have a minimum investment period of 5 years. Additionally, historical data suggests 5 years is the median amount of time to ensure you, the tenant, generates a minimum 5% deposit.



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?

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.



Refer a friend

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.



Other

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.