Rent to buy

I have the same thoughts, will be interested to hear others experiences.

Are you asking as a seller or a buyer?

Possible seller but we are trying to find out more about it before we commit to anything

Buyer.

Buyer ???? no I am a seller

I understand PixElated is a buyer and Valetie is a seller.

I have some experience with this as buyer of a property where a 'rent to buy' agreement had been made with someone else but they didn't occupy it.

From the seller's point of view I can see this being a very hazardous option.  The 'buyer' could allow the property to deteriorate and then ask for a reduced price, or not buy at the end of the agreed period and the seller is left with having to restore it.  If property prices are going up then at the end of the rental period you will be selling at a relatively low price.  If property prices are going down the buyer will want a reduction or can walk away and buy somewhere else.  Even if a 'watertight' agreement could be created that was fair and reasonable for both parties, if the buyer defaults on it then seeking redress will be a very expensive exercise and almost certainly not worthwhile.  Even if the buyer is honest, actually living in a property will reveal all its faults and defects and the novelty will wear off after a while, so they could well decide not to buy at the end of the agreement.

To me this kind of arrangement puts all the cards in the hands of the buyer and as a seller I wouldn't touch one with a long bargepole.  Sounds like the sort of thing an agent would encourage as they would no doubt get a fee at the outset and any final completion fee will be a bonus - meanwhile they will be busy selling other properties.  

My view is that if you are going to sell the property then sell it in the normal way through an honest and reliable local estate agent.  If you want to rent it for income then rent it. I don't think there is any certainty at all about which way prices are going in Spain as the disruption caused by the Covid catastrophe comes to an end.  Who would have predicted that the UK property market (or at least parts of it) would be booming now, with no sign of it slowing down?

Thank you for your valid input......one thing I would mention though is the buyer needs to have house insurance, they have to pay all the bills relating to the house .......rent which would be approx 1200 euros but not the suma which stays in our name.....they also have to pay upfront 10% of the asking price which in our case would be 40,000 euros which is non refundable should they breach the contract......

Don't. I have never heard of one of these going through at the end and it's a very precarious position for the seller. Usually, it's a way of the potential purchaser being able to live in a property with low rent, they usually haven't got enough money to purchase it once the rent to buy period is finished and from the experiences I have heard of, the "purchaser" finds one excuse after another to complain and ask for rent reduction etc. and then they usually "do one", taking anything that's worth having with them, running up loads of bills and leaving the owner with serious and very expensive repairs. If they can't afford to buy the property outright at the start, it's very unlikely they will have the money to buy it at the end.

Apologies for not reading your original post again! This arrangement would be more attractive for the seller, but I'm not sure why a buyer would want to enter into an agreement like this - maybe gambling on prices going up and want to lock in the price now?   As a seller you are getting maybe 2% return (after costs) on the money you have tied up in the house so I assume it's not for the income.