Wayhome buys properties for ‘progressive ownership’ launch

Wayhome has started buying properties through what he calls a ‘phased homeownership’ model using £ 500million in funding provided by pension providers.

The scheme is an alternative to traditional condominiums, but it allows buyers to purchase homes with a 5% down payment and it is not limited to new construction.

Wayhome says the program allows buyers to afford homes that are worth six to eight times their household income and increase their share at any time, without paying an arrangement fee, in increments of as little as $ 50. £.

The program is available in a wide range of locations across the UK and first-time buyers are expected to move into their homes in September this year.

Once the buyer has deposited their down payment, Wayhome buys the house in full, in cash by partnering with institutional investors.

Buyers don’t need a mortgage because they rent out the portion of the house they don’t own at the market rate.

Borrowers can “climb a staircase” by purchasing a maximum of 5% per annum and a maximum stake of 40% in total.

Since borrowers don’t have a mortgage, they avoid the hassle of having to change their arrangements with the lender every time they want to increase their share.

Buyers are encouraged to choose a home with rental income of less than one-third of their income to ensure that they can afford to increase their ownership interest over time.

They must have a family income of at least £ 30,000.

These are typically priced between £ 200,000 and £ 500,000, are in good condition with no building work required, have between two and five bedrooms with good sized rooms and are in desirable areas.

He does not buy new construction.

Wayhome acts as the buyer and manages the entire buying process, dealing with agents, transport agents and surveyors, as well as performing due diligence to reduce the risk that the buyer pays too much. expensive or ends up with expensive problems to solve.

He says that as long as borrowers pay their rent and look after their property, they will have security of tenure and only need to sell if they want to.

Buyers are exempt from some of the restrictions that apply to some rental properties, so they can decorate however they want and keep pets.

Wayhome Managing Director Nigel Purves said: “It is a sad reality that home ownership is out of reach for millions of people in the UK.

“Because lenders only offer loans based on low income multipliers, even those who have saved up a large deposit are often prevented from borrowing enough to purchase the type of home they can comfortably afford to rent.

“Our Progressive Homeownership Program is a new gateway to the housing ladder, which meets our clients’ homeownership ambitions, while treating them fairly.

“Progressive home ownership allows our clients to move into a bigger and better home.

“But it also means they can stay as long as they want, decorate and share the maintenance costs fairly with our financial partners.

“Over 40,000 people who have registered with Wayhome are already key workers.

“We know how hard they worked for us during the pandemic, but many of them cannot afford to buy a decent house for themselves and their families.

“Our mission is to help change that.

“This initial launch is the first step towards a new world of possibilities for reluctant tenants.

“There is so much more to come from us as we work to achieve our mission of reinventing homeownership. “

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