A Brechin businessman has become one of the first home seekers to benefit from a new local property initiative, allowing him to build his new business while saving for his dream home.
Less than one year after opening hairdressers ‘Envy’ in the town’s St James Place, Ross Henderson (21) is settling into his new semi-detached, three-bedroom home at Stephen’s Bearehill development after signing up to their rent-to-buy scheme.
Perth-based Stephen introduced the initiative to allow first-time buyers to save for their dream home while renting brand new accommodation.
Put simply, Stephen will rent the ‘Ben Aden’ house style to Ross for up to two years and then refund half the payment to help pay his deposit to buy it.
Ross, who was born and bred in Brechin, said: “Having rented for three and a half years and attempting to save up for that crucial deposit, I was keen to explore new options and was delighted to hear that I could rent a brand new house while saving to buy it and, in the meantime, grow my new business.
“It’s very easy to fall into the trap of renting with nothing to show for it but, when you’re also supporting a new business, this initiative really appealed.
“It’s made everything more affordable, less daunting and more of a gradual process than ‘buying’ in the traditional sense. I can now enjoy my fantastic new home and build my business, just months after my 21st birthday!”
Tom Buchanan, marketing manager at Stephen, explained: “We’re delighted that Ross has entered into our rent-to-buy scheme.
“As lenders continue to demand significant deposits, we’re providing some welcome respite for first-time buyers like Ross, and ultimately accelerating the process of buying a home.
“So many people who are struggling to buy end up renting due to the current economic climate but they will still have the financial burden of securing a deposit. With this initiative, they are technically saving up for their deposit for a Stephen home by renting one first.”
On condition that they enter into an agreement with Stephen when rental commences, the initiative allows first-time buyers to rent for up to two years and, at the end of that period, receive 50% of the rental paid towards a deposit for their new Stephen home. This refund is used towards the deposit required by the lender, which is normally 5% of the full purchase price on a 90% shared equity mortgage.
The company will also fix the sales price of the home they are going to ‘rent to buy’ at today’s value, providing certainty in terms of budgets and inflationary rises.
First-time buyers will require to consult with a solicitor and financial advisor before entering into the initiative. The initiative also applies to the company’s development in Errol.
For more information on the rent to buy plan, please contact A&J Stephen’s Sales team on telephone telephone 01738 620721, email email@example.com or via website www.stephen.co.uk