Question 1

What are the key components and benefits of the SuchHomes program?

Accepted Answer

• The tenant and their Preferred Home goes through our pre-qualification and qualification process for approval.
 • If approved, the tenant pays an initial deposit (Initial Principal Savings) towards the home, which is placed in a Tenancy Deposit Scheme. SuchHomes purchases the home with proceeds from our funding partners, and the tenant signs a 5-year lease Modified Tenancy Agreement and moves in.
 • During the lease term, the tenant pays market rent and monthly principal savings. In addition to the Initial Principal Savings, the monthly principal savings and a % (equal to the same % contributed towards their initial deposit) of the market rent will go into the Tenancy Deposit Scheme and will go towards the purchase of your home at the end of the lease term.
 • The tenant enjoys a share of any gains in capital value of the home realised during the lease term. The tenant’s share is determined by their accumulated deposit at the end of the lease term, and the level of capital appreciation on the home during the lease term.
 • The tenant can exercise a break option of the lease, after 3 years to leave the property or to purchase it from us.

1. If the tenant decides to exercise the break option to leave the property, then the accumulated principal savings up to that point will be returned to the tenant minus any administrative costs incurred by us when breaking the lease.
2. If the tenant decides to exercise the break option in order to buy the property after 3 years, then the accumulated principal savings up to that point will be applied towards the purchase price of the property. The tenant will also participate in any gain in the value of the home, which will be applied towards the purchase price of the property.

Our product is designed to alleviate the usual pain points that our customers will encounter in the rent-to-own process using customer-centric and AI technology by ensuring that tenants;
 • can access homeownership with a relatively low deposit.
 • pay rent at a discount to market rates and contribute towards an adequate deposit towards purchasing the home from us at lease term end.
 • receive a share of the capital appreciation (in an up-market) of the home value, which will reduce the future price at which they will buy the home from us at lease end.
 • improve their credit scores from reporting of their rental payments to credit rating agencies.
 • have visibility over their financial obligations (rent payments, contributed savings towards a deposit, their share of capital appreciation or loss and future home price that they will buy from us) from day one.
 • receive real-time updates on the conveyancing process via a dashboard and PUSH notifications.
 • are guaranteed a market-leading exit deposit of at least 12% of the projected sale price of the home.

Question 2

What are the costs?

Accepted Answer

The tenant pays a Product Fee to us for arranging the financing to purchase the Preferred Home. This is calculated on the value of the home being purchased.

We will also charge a Rent Arrears Fee on late rental payment, a Rent Recovery Fee if the tenant is unable to settle any outstanding arrears, and an Extension Fee if the tenant decides to extend their agreement with us.

For more details see our Fees.

Question 3

How long is the lease term?

Accepted Answer

5 years, with an exercisable option to break the lease after 3 years.

Question 4

What happens at the end of the lease term?

Accepted Answer

The tenant purchases the home from us.

Question 5

How does the SuchHomes program compare to traditional renting?

Accepted Answer

Our program offers a quicker pathway for the tenant to own a home of their choice, allowing them to live in the home and save towards a purchase of the home at the end of the lease term.
Unlike traditional renting, the tenant enjoys certain homeownership privileges like painting the walls and putting pictures up without landlord permission and interference. The tenant gets to settle in comfortably and focus on their family and career. This also removes the stress of worrying about when they would be able to get on the property ladder and if they will ever be able to save enough to buy a home.

Question 6

How does the SuchHomes program compare to a mortgage?

Accepted Answer

Compared to a mortgage, our deposit, employment, credit and home requirements are much flexible in order to lower the threshold for getting on the property ladder. You don’t pay interest like you would with a mortgage, but pay rent while you save to buy the property.

Question 7

How does the SuchHomes program compare to Shared Ownership Schemes?

Accepted Answer

Under the Shared Ownership Scheme, the tenant pays a mortgage in addition to rental payment, which could increase overall payments if the mortgage is not fixed. Typically, shared ownership mortgage rates will be higher than on an equivalent standard residential mortgage, due to a general perception among lenders that they are taking on additional risk. With our program, there are no mortgage payments to worry about.

Shared Ownership Scheme properties are restricted to leaseholds only, unlike our program, which accepts leasehold and freehold properties.
The Shared Ownership Scheme is not offered in every location in the UK, so where the tenant lives will be dictated by where the shared ownership homes are available. This is not the case under our program, which is available in all parts of the UK.

Question 8

How does SuchHomes help the tenant to secure a mortgage at lease end?

Accepted Answer

• We have structured our product to ensure that the tenant has at least an exit deposit of 12% of the home price at the end of the lease. This is achieved with an accumulated deposit made up of rent contributions and tenant deposit savings, and a share of the capital appreciation of the home.
 • We report rental payments to credit rating agencies, which improves their credit ratings and score to prepare them for a mortgage at the end their lease term.
 • We will work with mortgage lenders to identify a pipeline of mortgagees from our customers approaching the end of their lease term, and refer them to lenders for a mortgage.

Question 9

Who owns the Preferred Home during the term of our agreement?

Accepted Answer

A Special Purpose Vehicle (SPV) will be set up to be the legal owner of the property. This SPV will have the tenant and our funders as shareholders.

Question 10

What happens if you cannot / decide not to buy your Preferred Home?

Accepted Answer

Your accumulated principal savings, less any administrative fees, will be returned to you at the end of the lease term.

Question 11

How are the Product Fees calculated?

Accepted Answer

Product Fees are calculated as:

• The lower of (i) 0.25% of the Purchase Price of the property and; (ii) £1,000; if the Purchase Price is less than or equal to £450,000.
 • The lower of (i) 0.30% of the Purchase Price of the property and; (ii) £1,500; if the Purchase Price is between £450,000 and £650,000.
 • The lower of (i) 0.35% of the Purchase Price of the property and; (ii) £2,000; if the Purchase Price is between £650,000 and £800,000.

The minimum fee is £900.

Question 12

What other fees are charged?

Accepted Answer

We charge a Rent Arrears Fee on late rental payment, a Rent Recovery Fee if the tenant is unable to settle any outstanding arrears, and an Extension Fee if the tenant decides to extend their agreement with us.

Question 13

Are there any regulatory protections available?

Accepted Answer

• The lease agreement will be Modified Assured Shorthold Tenancy (AST) Agreement to incorporate the rent to own aspects of our scheme. Under this agreement, your rights as a tenant will be protected.
 • Tenants' rights for services received, and specific housing requirements are protected under the Consumer Rights Act (2015) and Tenant Fees Act 2019. 
 • Your accumulated principal savings will be placed in a protected Tenancy Deposit Scheme, which is a custodial scheme mandated by the government to protect tenant deposits, if they enter into an AST. We will not have control over these deposits during the term of the lease.