The Long Rent to Buy (Long Rent to Own), created for FOREIGN BUYERS not loanable in Italy.
It is known overseas property investors are familiar with
Italy as a desiderable destination.
What is not well known instead no resident buyer won't
get a mortgage to purchase the property.
Obviously this doesn't mean Italy is a market only for
cash buyer.
In order to overcome this issue and help wealthy foreigners
to buy houses in Italy we have set up
a specific version of the Rent to Buy (or
Rent to Own as known in the U.S.A.).
This peculiar method is called Long Rent to Buy (Rent to Own) in order
to difference it from the typical
Rent to Buy (Rent to Own); the main differences are in the philosophy and duration.
In fact, typical Rent to Buy (Rent to Own) represents a short-term
preparatory purchase program
addressed to facilitate the mortgage and pay the
balance within 3 years.
The Long Rent to Buy (Rent to Own) instead is a long-term payment plan
which totally replace the mortgage;
it takes maximum 10 years where the buyer
will pay the whole sale price with monthly rates
of whom 75% will be paid as purchase
price and 25% as rental cost.
It's a win to win strategy bringing mutual benefits for
both the buyer and seller.
This solution allows the buyer to purchase the property
without entering the nightmare of a bank loan,
saving the related significant costs,
and corresponding the buyer an inferior interest rate
on the monthly payment instead the one should have been paid to the bank.
This contractual form is legally receipt in the Italian
system
(Art. 23 of the Decree n. 103/2014 "Sblocca Italia").
This contract protects the buyer's interest as makes
obligatory the transcription for 10 years
of the agreement in the competent
Italian Institution; this aspect protects the buyer against any hypothesis
of
seller death, bankruptcy or creditor aggression on the property.
The seller instead is protected because the contract
transfers only the detention of the property;
the ownership right will be transferred once the whole
payment will be completed.
The Long Rent to Buy (Rent to Own) financial structure we have set up necessary includes:
- the sale price has to be paid with monthly rates (120) into 10 years
- a down payment not inferior to 10% of the sale price as deposit
- each monthly payment is corresponded as follows:
- 75% as monthly payment of the agreed purchase price;
- 25% as rental cost, which includes a financial revenue of 3.33%
for the seller.
So, 3,33% interest rate paid to the vendor is inferior to
the typical 2.5% interest rate
with french ammortization paid to the bank,
while the seller won't apply this banking method.
Example 1
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Example 2
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It is very clear the advantage the buyer gets using this
formula because he saves
part of the bank interest cost related to the mortgage
procedure.
Also the buyer won't be submitted to the heavy and expensive
procedure to provide the translations
of the documents to the bank.
With our solution it will be enough the Passport and
Codice Fiscale (Tax Number).
NO STRESS.
Nevertheless, the buyer is allowed to hand over the
contract within the 10 years to a third part
eventually also earning money.
Obviously the Long Rent to Buy (Rent to Own) purchaser keeps the control
over the property
until won't become the owner.
Our contractual form also includes the possibility to
sub-let the property assuring
the Long Rent to Buy (Rent to Own) purchaser a rental income.
Feel free to ask our Long Rent to Buy (Rent to Own) financial
simulation in order to check
your case and advantages.
