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North London letting agents note 'rent-to buy' and 'rent-to-rent' trends

It's no secret that house prices in London are higher than anywhere in the country. Increasing values of properties for sale in south west London - up 16% on 2014 and up 31% on 2012, according to property portal Rightmove - mean that many owners are sitting on attractive amounts of equity. It also means, however, that buyers have to find bigger deposits in order to secure a new home in the area. The conditions have created two new trends that are gaining in popularity, comment our north London letting agents. 'Rent-to-rent' and 'rent-to-buy' are enabling London residents to move home, retain an investment and, in some cases, create an income. Any rental action should always start with demand, and Winkworth is experiencing a rise in enquiries for flats and houses to rent in north London. With a keen audience, it is worth investigating the logistics of renting out an existing property if there is a need to move. Turning a family home into an investment property is possible, with expert advice. In some cases it is viable to convert an owner-occupier mortgage into a buy-to-let one, although with favourable lending conditions, refinancing an existing property may result in lower costs than before. Here are some instances where 'rent-to-rent' and 'rent-to-buy' can be advantageous:- A homeowner is working away on a temporary contract - renting gives people flexibility to move about for work, so 'rent-to-rent' is ideal on a six of 12 month basis. Renting out a current home ensures it doesn't sit idle at a time when there is a high demand for properties to rent in north London, and renting in a new location allows the tenant to return home without making permanent living arrangements. A homeowner is trading up but doesn't have the deposit necessary to buy a more expensive property - this 'rent-to-rent' set up works on a short-term basis. A homeowner rents out their current property while moving to a rented property where the rent is much lower, giving them surplus cash to save. When enough money is banked for a deposit, the original homeowner can buy as a chain-free purchaser and can choose to keep the original home on as an investment. Downsizing in size and commitment - smaller, lower-maintenance properties to rent in north London are proving popular with downsizers. These tenants choose to keep their family home for investment income but prefer to rent a smaller, cheaper property where many maintenance responsibilities lie with the landlord. The rent they receive on the original home covers the rent on the new property and often gives them an income as well. A homeowner needs to relocate for work or personal reasons - but can't bear to part with the family home or would like to retain a London base for the future. A homeowner would like to be chain free - choosing to rent out a current home instead of selling enables the buyer to become chain free and, therefore, more attractive to sellers. It also allows them to move quickly without the need to find a buyer. A homeowner is moving to an area with lower house prices - if the rent received on an existing property, after deductions, is more than the mortgage repayment on a new property, there could be a profit for the landlord (although tax implications would need to be considered). Refinancing as part of a letting arrangement can also free equity, if the figures stack up. If you would like to explore 'rent-to-buy' or 'rent-to-rent', please contact Winkworth - north London letting agents - today.

It's no secret that house prices in London are higher than anywhere in the country. Increasing values of properties for sale in south west London - up 16% on 2014 and up 31% on 2012, according to property portal Rightmove - mean that many owners are sitting on attractive amounts of equity. It also means, however, that buyers have to find bigger deposits in order to secure a new home in the area.

The conditions have created two new trends that are gaining in popularity, comment our north London letting agents. 'Rent-to-rent' and 'rent-to-buy' are enabling London residents to move home, retain an investment and, in some cases, create an income.

Any rental action should always start with demand, and Winkworth is experiencing a rise in enquiries for flats and houses to rent in north London. With a keen audience, it is worth investigating the logistics of renting out an existing property if there is a need to move.

Turning a family home into an investment property is possible, with expert advice. In some cases it is viable to convert an owner-occupier mortgage into a buy-to-let one, although with favourable lending conditions, refinancing an existing property may result in lower costs than before.

Here are some instances where 'rent-to-rent' and 'rent-to-buy' can be advantageous:-

A homeowner is working away on a temporary contract - renting gives people flexibility to move about for work, so 'rent-to-rent' is ideal on a six of 12 month basis. Renting out a current home ensures it doesn't sit idle at a time when there is a high demand for properties to rent in north London, and renting in a new location allows the tenant to return home without making permanent living arrangements.

A homeowner is trading up but doesn't have the deposit necessary to buy a more expensive property - this 'rent-to-rent' set up works on a short-term basis. A homeowner rents out their current property while moving to a rented property where the rent is much lower, giving them surplus cash to save. When enough money is banked for a deposit, the original homeowner can buy as a chain-free purchaser and can choose to keep the original home on as an investment.

Downsizing in size and commitment - smaller, lower-maintenance properties to rent in north London are proving popular with downsizers. These tenants choose to keep their family home for investment income but prefer to rent a smaller, cheaper property where many maintenance responsibilities lie with the landlord. The rent they receive on the original home covers the rent on the new property and often gives them an income as well.

A homeowner needs to relocate for work or personal reasons - but can't bear to part with the family home or would like to retain a London base for the future.

A homeowner would like to be chain free - choosing to rent out a current home instead of selling enables the buyer to become chain free and, therefore, more attractive to sellers. It also allows them to move quickly without the need to find a buyer.

A homeowner is moving to an area with lower house prices - if the rent received on an existing property, after deductions, is more than the mortgage repayment on a new property, there could be a profit for the landlord (although tax implications would need to be considered). Refinancing as part of a letting arrangement can also free equity, if the figures stack up.

If you would like to explore 'rent-to-buy' or 'rent-to-rent', please contact Winkworth - north London letting agents - today.

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