WHAT IS A RENT TO BUY IN SPAIN?

A Rent to Buy (also known as Rent To Own) is a contractual arrangement where a property is rented for a specific time period, with the option to purchase the property for a pre-agreed price during that term. The initial payment and all the rent monies paid during the rental period are removed from the pre-agreed sales price at the time of purchase at notary. How does a rent to buy in Spain work? :-

• Agree an upfront initial payment (between 3% – 10% of the buy price)
• Agree a monthly rental amount (all of which will contribute towards the purchase)
• Agree a sales/purchase price
• Agree a term within which to purchase the property (usually 12 – 36 months)
• Sign a contract based on the above agreed amounts
• Move into your new home
• Buy the property within the agreed term with all the rent paid being removed from the pre-agreed purchase price

In summary, this approach allows buyers to start to buy their new home in Spain with as little as 3% initial deposit and with interest free monthly payments during the rental period. The Rent To Buy contract can be a private contract between both parties, alternatively, the contract can be notarised and registered with the land registry, to assist with this we have partnered with independent lawyers Vives Pons Asociados.  We have also obtained the support of MortgageDirect to assist our clients to obtain a mortgage if/when required and if a currency transfer is necessary we also have Currencies Direct to help you get the best rate available.