Elevate Property Group, an industry leader with a proven track record spanning over three decades, has introduced the scheme at its Mulberry House apartment development in the heart of Derby.
David Hofton, sales and marketing director at Elevate Property Group, said the scheme was a no-risk road for home buyers struggling to get their foot on the property ladder.
“The scheme is the easiest way to move from renting to buying a home without having to fund a full deposit,” he said.
Mulberry House, in John Street, Derby, is the latest addition to the much sought after Silk Yard site in DE1. The 94-home high-spec apartment building includes, studio, one- and two-bedroom apartments with parking options.
Some 70 per cent of the homes at Mulberry House have now been sold with the three-bed options completely sold out.
The new ‘try before you buy’ scheme allows prospective buyers to rent an apartment at Mulberry House for a period of six, nine or 12 months. During that time, residents can experience life in Derby city centre from a property packed with upgrades.
At any time during the rental tenancy, they then have the option to buy the property at a pre-agreed sale price with the help of up to a five per cent ‘Developer Gifted Deposit’.
The independent builder says it is committed to enabling home ownership and once a rental plot is chosen and the price agreed, it will remain set until the end of the rental agreement allowing peace of mind and enabling purchasers to beat the rise in forecasted price rises should they decide to buy.
According to Savills, the East Midlands is forecast for property price growth of 23.4 per cent during the period 2024 – 2029.
Buyers’ prospects are increasingly favourable with more attractive mortgage rates on the table and some lenders once again offering 90 and 95 per cent mortgages and some cases even 100%.
A recent BBC article quoting Moneyfacts data, stated that there are now more low-deposit mortgages available than at any time since the financial crisis of 2008.
Property experts Savills also forecast an anticipated increase of 17.6 per cent in rental growth over the next five years.
David said: “Our ‘try before you buy’ scheme is a win-win deal for home buyers. With rental costs forecast to increase, the gap between rents and mortgage repayments is widening.
“In many cases, it is now cheaper to fund a mortgage than pay the monthly rent on a property and this gap is set to widen.”
The wider Silk Yard development created on this landmark site is an area of Derby that was once home to the city’s manufacturing heart. DE1 is now rapidly reinventing itself as a thriving professional quarter.
The award-winning developer has designed the site around a gated courtyard. It stands on a tree-lined boulevard opposite Liversage Square and its open green, mid-way between The Derbion and Derby Railway Station.
It is also just a 15-minute walk from Vaillant Live, Derby’s new flagship performance and entertainment venue (previously named Becketwell Live).
Prices at Mulberry House start from £140,000 for a studio apartment, £170,000 for a one-bed and £220,000 for a two-bed apartment.