Connect Network has partnered with rent-to-own specialist, Keyzy.
Keyzy enables people to move into a property with no deposit with the option to build up a deposit while living there and buy it later should they choose to.
Connect started a pilot with Keyzy back in April and is now rolling out the partnership throughout its whole network.
Keyzy works by buying a property for a client who cannot get a traditional mortgage and renting it to them for a period of three to seven years. The monthly payments are in line with market rental, while the client pays up to an additional 25% ‘converted rent’ depending on affordability. The converted rent works as a savings scheme and helps the client to build a virtual deposit while living in the property.
The client then has the option to buy the property back at the original purchase price – plus stamp duty and Keyzy’s legal fees. The client benefits from any appreciation in the property, helping them to build their equity whilst living in the property as well as building their deposit. If the client wants to buy a different property they can also do so. They can find a buyer for the home at any time during the lease and keep all the upside. They just need to make sure the home is sold at a price equal to or above the original purchase price including Keyzy’s costs. They also get up to 25% of their rental payments back.
Simon Groll, co-founder of Keyzy, said: “It has been great to grow and learn with the support of an award-winning network like Connect. They have embraced our alternative rent-to-own solution and it has been a pleasure to assist some of their clients who, without Keyzy, would have had no other options available. It is the start of a thriving relationship and a real solution for those struggling to buy for the first time, or to step up the property ladder.”
Jane Benjamin, director of mortgages at Connect, added: “Keyzy adds something really different for our network members to offer to their clients. It is an innovative solution both to help people get onto the property ladder or to make that next move.
“This latest partnership is part of a concerted effort that we make at Connect to give our network members a real edge, by providing access to the widest range both of mainstream and specialist lenders as well as more innovative solutions such as that provided by Keyzy.”
