Frequently Asked Questions
Commonly asked questions about how rent to buy works and how Keyzy can help you get on the property ladder.
Select FAQ
Finding out your budget
How do I find out my budget?
You can use our budget calculator to get an idea of what your budget could be based on your income and where you want to live.
In order to get your Budget in Principle you’ll need to apply here.
In order to get your Budget in Principle you’ll need to apply here.
How long is the Budget in Principle valid for?
Your budget in principle is valid for 28 days from issue, you can renew it by completing a full application with us, after which your budget could be adjusted up or down depending on your circumstances.
How is my maximum budget calculated?
It's based on your income and where you want to live. We want to make sure it's something you could afford, and is not capped at four and half times your income like traditional mortgage lenders. You can apply for a budget in principle to get an idea of how much you could spend. After you’ve completed a full application we’ll review your circumstances in detail and give you an updated budget which could be higher or lower than before.
How are my monthly payments calculated?
Your monthly payments are based on several factors; the value of the home, typical rental amounts in your area for similar properties, plus the fact that we fix your rent for up to 7 years unlike traditional landlords. Also, an additional 25% of your monthly payments are converted into reducing the future buy-back price you pay for the home later on.
How much deposit do I need?
You don’t need a deposit. That's the beauty of Keyzy! If you have savings you can keep hold of them until you're ready to buy the home. We also convert up to 25% of your monthly payments towards reducing the price you pay for the home later.
What is the minimum household income required?
You need to have a minimum household income of £30,000 before tax.
Applying to Keyzy
What are the basic eligibility criteria?
You will need to be over 18 and have the right to live in the UK. We will also do an industry-standard check on you using secure and modern technology including:
- Verifying your income and outgoings (using Open Banking)
- Checking for fraud and bankruptcy (using Credit bureaus)
- Reference checks with landlords and employers
Are there any hidden fees?
- No, there are no hidden fees when you buy a home with Keyzy. We charge an up front survey and valuation fee of £999 when you have an offer accepted on your chosen home.
- We also charge a £1,999 product fee before you get your keys and move in.
- There is a 2% early exit fee if you buy your home from us before the end of your agreed lease. There’s a 2% early exit fee if you chose to sell the home to another buyer.
- Your monthly payments stay the same for the full duration of your lease. No increases.
Do I need a perfect credit score?
No. But we do take into account your income and spending behaviour over the past year to make sure you can afford the monthly payments and are not likely to miss any payments.
We don’t accept applicants who have entered an IVA or Bankruptcy in the last 3 years, nor any missed rental or mortgage payments in the last 12 months, or Defaults and County Court Judgements in the last 12 months over value £250.
If you end up getting a home with Keyzy we will also report your rental payments to Equifax. This means that your rental conduct could improve your credit position and credit score. This can make it easier to obtain credit on better or preferential deals and more likely to be accepted. It can also mean Banks and Mortgage Lenders can see your rental conduct without having to ask for documentation and can help secure the best mortgage deals available.
Do you run a credit check?
We run a soft credit check with a credit referencing agency to ensure suitability.
How do you decide how much of my rent is converted?
Up to 25% of your rent is converted towards reducing your future buy-back price. This might be a lower percentage based on your ability to afford the monthly payments.
Can I add my savings as a deposit?
Keyzy is a zero deposit solution. If you have savings, you can keep them and keep growing them. When it's time to buy the home from us you can use your savings to increase your deposit.
Do I need to get legal advice?
Yes. Just like when buying a home, you will need to talk to a solicitor to guide you through the legal documents before signing. We will offer a panel of solicitors for you to choose from to help. This will be at your cost.
Can I get help from family?
If applying to jointly with a family member, both of you must live in the home as your main residence. At the moment we don’t offer an option to use a guarantor.
I'm not a First Time Buyer, is Keyzy still for me?
Of course. Keyzy is designed to assist where a mortgage cannot, and is not exclusively for First Time Buyers.
How many people can apply with me?
We currently accept up to 2 applicants. Please get in touch if you would like to apply with 3 or more applicants.
I'm married, do we both need to be on the application?
If you are married or in a civil partnership you will need to add your partner to the application. This is because you are financially linked, and most mortgage companies will want to do this when it is time to buy. If your partner is not working or receiving an income, they will still need to be on your application.
I have several income sources. Will this be an issue?
We accept multiple income sources when determining a budget and your monthly payments, including salary, bonus, commission, benefits and other income sources.
For us to accept an income source, you will need to have been receiving it for at least 3 months. For example, if your recently changed jobs you will need 3 months salary payments to qualify.
I'm self employed. Will it be difficult to get approved?
As long as you meet the eligibility criteria and our checks on you and the property are good, so are you!
You will need a minimum of 12 months self-employment for it to be considered as income.
I have a few late payments on my record, will this impact my application?
We take your full financial circumstances into account when deciding your offer. Late payments might have an impact depending on how many, how much and what they were for.
Finding your new home
Do you accept all types of property?
We currently accept houses in England & Wales that can be occupied straight away and do not require refurbishment or renovation to meet a liveable standard. We are not yet buying flats or leasehold properties, but we hope to be doing this in the near future.
We also require that homes have an Energy Performance Certificate with a rating of at least E. If the EPC is less than C, you will be required to upgrade the home to C within your first 12 months with Keyzy at your own cost.
We also require that homes have an Energy Performance Certificate with a rating of at least E. If the EPC is less than C, you will be required to upgrade the home to C within your first 12 months with Keyzy at your own cost.
Where does Keyzy buy homes?
At the moment Keyzy is only available to people looking for homes in England & Wales. We are hoping to expand to the rest of the UK in the near future.
We will review any property in England & Wales on a case by case basis and may reject some homes if they are in a remote or particularly undesirable location.
How long will it take between applying and moving in?
We buy properties quicker than most individuals as we have efficient processes and in-house specialists. However, property purchases can be subject to unforeseen delays that we can't predict. We'll keep in regular contact with you every step of the way so you know what is happening.
What happens if I can't pay my monthly payments?
We do our best to make sure your monthly payments are affordable before you sign the agreements and move in. Please get in touch if you find yourself with financial challenges, as we will try to work out ways to support you.
How do I decide which home to buy?
Once you have your Budget in Principle you can use it to look for homes for sale. Let us know when you've found one you like, complete a full application and, subject to approval, we'll negotiate to get you the best deal possible.
What happens if the sale falls through?
If the purchase of your home falls through you can look for an alternative home and you don’t need to re-apply. Depending on the reason for the sale collapsing your £999 survey and valuation fee can be transferred to your next property so you won’t need to pay it again. This is not the case if you decide pull out of the purchase for any reason.
Living with Keyzy
Who is responsible for maintenance of the home?
Keyzy will be responsible for any insurable costs such as storm damage or burst water pipes. We also make sure you have your gas and electrical safety certificates. You are responsible for wear and tear and day-to-day upkeep of the home.
Will my rent increase or decrease?
We fix your rent for the full duration of the lease. No increases. If at the end of your lease you are not yet ready to buy the home with a mortgage you can sign another lease with us and keep reducing your buy-back price. At this stage we may change your payments to reflect rental market conditions.
How long is the lease I sign?
The lease will be between 3 to 7 years, but is typically for 4 years with an option to sign another lease at the end up to a maximum of 8 years. For example, if your first lease is 4 years and you are not ready to buy the home at the end you can extend for another 4 years. The longer your lease the more you reduce the price you pay for the home at the end. You can leave your lease at anytime if you find another buyer. You can keep any gain in home value and will need to pay a 2% early exit fee.
Who owns the property and who pays for it?
Keyzy buys the property for you, and remains the owner until you are ready to buy it from us.
Do I need to pay for buildings insurance?
No. Keyzy is responsible for buildings insurance until you buy the home, as we are the landlord.
Who pays for stamp duty and do I get a discount?
Keyzy pays the stamp duty up front when we buy the home. This forms part of your locked-in price. For example, if we buy a home worth £200,000 it might cost us a total of £215,000 to complete the purchase including stamp duty and legal costs. To buy the home from Keyzy you will need to pay £215,000 minus any converted payments you've already made. You will also need to pay stamp duty to buy the home later. If you are a first time buyer you will be able to take advantage of any discounts offered at the time.
What are my rights as a renter?
You can stay in the property for the full duration of your lease as long as you make your monthly payments, like a traditional rental agreement (assured shorthold tenancy).
Can I make additional overpayments?
No. Your converted payment amounts are fixed for the duration of your lease.
What happens if I want to move somewhere else?
At the end of your lease you are free to leave, but we still want you to get any potential increase in the property value. You can find a buyer for the home at any time during your lease, and keep all the upside. You just need to make sure it is sold at a price equal or above the original purchase price including out costs. You also get up to 25% of your rental payments back (minus an early exit fee of 2% for selling the home).
Buying your home, or walking away with the upside
How much do I pay Keyzy to buy the home?
If you choose to buy, the price you pay will be made up of the original purchase price we paid for the home plus our costs (e.g., stamp duty and legal fees). This price is agreed before your lease starts. Each month, up to 25% of your rent payments go towards reducing the eventual price you pay. In other words, your purchase price will go down over time.
What's the difference between the Locked-in price and the Future Buy-back price?
The Locked-in price is the price we pay to buy the property including stamp duty and legal fees. If the value of the property goes up, it does not affect the price you pay to buy it from us.
The Future Buy-back price is the price you pay to buy the home from Keyzy. This is calculated by taking your Locked-in price and reducing it by your accumulated converted payments. You can buy the property at any point for Locked-in price minus your accumulated converted payments.
The Future Buy-back price is the price you pay to buy the home from Keyzy. This is calculated by taking your Locked-in price and reducing it by your accumulated converted payments. You can buy the property at any point for Locked-in price minus your accumulated converted payments.
How do you decide the Future Buy-Back price?
Your future buy-back price will be made up of the locked-in price (the price we paid to buy plus stamp duty, legal fees and all costs related to the purchase) and then reduced by your accumulated converted payments. If you choose to buy the home before the lease ends, the buy-back price might be higher as you won't have accumulated as much in converted payments.
What if the home is worth less at the end of the lease?
Your right to purchase the property remains intact, even if the property decreases in value. Subject to approval, the lease can be extended so you can continue working towards owning your home.
What if I can't get a mortgage at the end of the lease?
You may be able to extend your lease agreement (up to a combined maximum of 10 years) while you get ready to buy. If you still can't get a mortgage you can find another buyer and walk away with the gains (if the property value has increased).
Other FAQs
How does Keyzy make money?
Simple, we make money from your monthly rent. You keep your converted payments and any gain in the property value, if there is one, when it's time to buy the home from us later on.
Is Keyzy regulated?
Keyzy’s offering does not fall within the scope of financial services regulation. You should ensure that you understand what this means before you use the Keyzy product. The FCA guidance on dealing with non-regulated bodies is that all risks and benefits must be explained. We insist every client has independent legal advice before entering into a contract so you understand the proposition and the risks and benefits associated with it.
How is this different from a mortgage?
Keyzy buys your home for you to live in. You don't pay us interest like a mortgage. Instead you pay Keyzy rent while you get ready to buy. At the end of your lease with Keyzy you may need a traditional mortgage to buy the home.
What is the difference between this and shared ownership?
There is only one party who owns the home - Keyzy. You have an exclusive contractual right to buy the home from Keyzy at the end of your lease, or anytime before subject to a small fee. Shared ownership means multiple parties own different proportions of a property, and the value is shared proportionately as the price goes up or down.
What happens if Keyzy goes bust?
In the unlikely event that Keyzy goes bust, our lenders will take over ownership of the property from us. You can continue renting the home until the end of the lease period and the sale/purchase of the property. If Keyzy’s lenders choose to sell the home, you receive the proceeds from the sale to cover your converted rent as well as some of the upside depending on sale price. You also get right of first refusal to buy the home at market value.
What if I need to complain?
You can direct questions and complaints to [email protected]. Keyzy is a member of the Property Redress Scheme, and complaints can also be directed to them.
What do you do with the information I give you?
Please read our Privacy Policy for more information.
Still have questions?
Get in touch: [email protected]
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