Frequently Asked Questions
If there’s anything you’re not sure of, we hope you can find the answer below!
If not, get in touch with us and we’ll do our best to explain.
Who are we?
We’re a newcomer to the property industry, trying to get current and aspiring owners onto the same team.
We’re a small team with big aims, feel free to find out more here
Why did we start Adjoin Homes?
We want to remove as many barriers to homeownership as possible. If you aspire to own a home, we want to help.
Why do you care about housing affordability?
Marios and Kostas are frustrated renters that were getting no closer to owning a property in the area they live. They wanted to make a platform that could help them achieve their goals while keeping the interests of the current owners in mind.
Elliot is a property enthusiast that believes everyone should have access to homeownership if that’s their goal. He’s worked with social housing providers for over 10 years and brings his expertise to help others get on the ladder.
What if the tenant wants to buy during a downturn?
The sales price in the Option Agreement can never move downwards. If they want to buy in a downturn, they’d have to buy for the Minimum Sales Price (MSP), or they can make you an offer. There is no obligation for you to sell below the MSP.
How does it work?
Are you experienced in property?
Yes, we are.
Both founders have had startups in the property industry before, Elliot has worked in residential property for his whole career and DK grew up absorbing information from a family of property investors.
Owner’s FAQs
How much does it cost me?
If we manage the property, owners keep 95% of the market rent. If not, they keep it all.
We take the Option Premium as the bulk of our fee.
How do Adjoin Homes achieve a higher income?
- As our fee comes from the option premium, we don’t charge owners anything to find a tenant.
Our model allows us to manage the property for just 5%, which is less than a third of the London average! We also don’t charge Sales Commission.
How do Adjoin lower my costs?
Most importantly, we charge 0% Commission on sales if the tenant buys!
Most tenanted properties have a void period before sale, as buyers prefer purchasing with vacant possession. If the tenant buys, there is no void period for the sale, saving you mortgages, council tax and utility charges. There’s also no need for renovations or touch-ups before the sale, as the tenant buys as is.
What happens if the tenant doesn’t buy the property?
The tenancy ends as any normal one would. A check-out is done, and any deductions from the deposit are agreed.
We can find another Adjoin tenant, sell the property on the open market for a preferential fee, or the owner can take the property back.
When can the tenant buy the property?
Owners set the period in which the tenant can buy at the start of the tenancy, setting which months the Sales Period starts and finishes. The purchase option is only valid in this period.
Can I sell the property to someone else if I want?
Yes, owners can sell the property during the tenancy, however, any new owner will still have to honour the Option Agreement until the end of the Sales Period.
What price does the tenant pay if they want to buy?
The tenant pays whichever is higher out of the Minimum Sales Price and the Current Market Value.
If the tenant opts for “Share In The Upside” they will get a discount equal to 20% or 40% of the property’s price appreciation above the Minimum Sales Price.
What if the tenant wants to buy during a downturn?
The sales price in the Option Agreement can never move downwards. If they want to buy in a downturn, they’d have to buy for the Minimum Sales Price, or they can make the owner an offer.
What is the Minimum Sales Price?
It is the minimum price the owner would sell for. It is set by the owner, with some input from us, at the start of the tenancy.
What if the tenant runs into arrears?
If we manage the property, we would contact the tenant to find out what’s gone wrong.
We help manage the situation to help get them back on track, but if they aren’t playing ball, we can end the tenancy as you would in any standard tenancy (i.e., an Assured Shorthold Tenancy or AST for short).
Our referencing partner also offers Rent Guarantee, which can keep the money coming in, even if the tenant isn’t paying.
My property has a mortgage, is it suitable for Adjoin?
Not a problem.
We can even tailor the agreement to have the sales period coincide with the end of any fixed rate.
What if I am an institutional landlord?
If owners or agents introduce more than 1 property, we’re happy to discuss how we can further tailor our services (and fees)!
Tenant’s FAQs
I’ve seen a lot of abbreviations, what do they mean?
- SITU = Share In The Upside. This is the name of one of our tenant schemes.
- TBYB = Try Before You Buy. This is the name of our other tenant scheme.
- MSP = Minimum Sales Price. The minimum price the owner will sell the property for.
How does the discount work?
If you choose SITU, you get a share of any of the appreciation above the Minimum Sales Price during your tenancy.
SITU15 – You pay a 15% premium on the rent. You get 20% of any appreciation above the Minimum Sales Price as a discount if you buy.
SITU20 – You pay a 20% premium on the rent. You get 40% of any appreciation above the Minimum Sales Price as a discount if you buy.
What is the Minimum Sales Price (MSP)?
The MSP is the lowest price the property owner is willing to sell the property for. It gives you an indication of how much the property will cost to buy.
If you choose our SITU (Share In The Upside) scheme, this is the price that will be used to calculate how much the property value has increased, which determines your purchase discount.
What if the tenant wants to buy during a downturn?
The sales price in the Option Agreement can never move downwards. If they want to buy in a downturn, they’d have to buy for the Minimum Sales Price (MSP), or they can make you an offer. There is no obligation for you to sell below the MSP.
What is an Option Agreement?
It’s a legal document that gives you the option, without obligation, to buy something.
In this case, it gives you the legal right to buy the property you live in during a defined time period.
Can I change which scheme I’m on mid-tenancy?
In theory, yes.
It will depend on the owner, but if they were willing to offer SITU at entry, they’re likely to be happy to offer it during the tenancy.
If I change scheme mid-tenancy, what happens?
If you change scheme, a new valuation will be done. We will then issue a new Option Agreement, with the updated valuation representing the new MSP.
You start paying the additional premium and accumulate your share of the appreciation, which will be given as a discount if you buy.
Do I have to buy the property?
No, the Adjoin Agreement grants you an Option, rather than an obligation, to buy.
If you decide you don’t want to buy, for any reason, no problem.
Simply end the tenancy as you would any other. Give the landlord notice to leave, leave when the time comes, and we will go through the standard deposit release process, governed by TDS (The largest UK tenancy deposit scheme).
What are the eligibility criteria for Adjoin?
You have to be able to pass referencing to rent the property. Typically, this means the monthly rent cannot be more than 40% of your gross salary.
When it comes to buying, you’d need to be able to raise a deposit and mortgage as with any normal purchase. When you register, we can contact you to understand a bit more about your situation and help forecast affordability.
How are you different from Help to Buy?
Well, firstly, we still exist! Help to Buy (HtB) was a government-run scheme that boosted your deposit by giving you an equity loan of up to 40%. You’d then get a normal mortgage to buy a property. It was only for newbuild homes.
With Adjoin Homes, you are a tenant until you buy. You have time to prepare for homeownership, allowing you to: save up the last bit of a deposit, wait for a pay rise or bonus, or simply check out if you like the home before committing to buying. We also don’t limit you to new builds!
With Adjoin, you maintain the flexibility of renting. You take no loans or mortgages, let alone two as with HtB or other private market solutions.
Is this shared ownership?
No, we’re different. With shared ownership, you have to buy a part of the property from the beginning, meaning you pay rent, plus a mortgage and in many cases, contribute to maintenance costs.
With Adjoin, you are a tenant with an option to buy, so you just pay rent. If you choose to buy, you become the owner.
Does renting with Adjoin affect my status as a First-Time-Buyer?
No, you’re still good.
With Adjoin, you are a tenant with the benefit of an Option to buy the property. You don’t own any of the property unless you trigger the option and complete the purchase.
Who owns the house in an Adjoin tenancy?
The ownership remains with the current owner during the tenancy.
We vet any owners that want to list with Adjoin to make sure they share our view of housing, seeing tenants as key stakeholders that need to be treated as such.
Who takes care of costs like maintenance and insurance?
The owner of the property remains responsible for any landlord’s costs during the tenancy.
Am I tied in for the duration of the tenancy?
It depends on the rental agreement.
You can request a break clause in the tenancy that will allow you to leave after a minimum period of time, as long as you give 2 months’ notice.
If you’re buying the property, you can trigger the option at any point during the Sales Period. When you buy, the rental agreement immediately terminates.
Which properties are eligible?
Any, really.
If you’ve seen a property you’d like to be on the Adjoin Scheme, get in touch. If it matches our criteria, we can write to the owners and see if they’re interested.
We also have a growing list of properties for you to choose from.
Am I tied in for the duration of the tenancy?
It depends on the rental agreement.
You can request a break clause in the tenancy that will allow you to leave after a minimum period of time, as long as you give 2 months’ notice.
If you’re buying the property, you can trigger the option at any point during the Sales Period. When you buy, the rental agreement immediately terminates.
The Adjoin rental figure seems higher than the market rent.
The rental figure you pay is the same as market rent, however, with Adjoin you pay a premium for the Option to buy the property.
You can select 10%, 15% or 20%, with the 15% and 20% options granting you a share of any property appreciation while you live there.
What is Adjoin’s role in all of this?
We facilitate the relationship between you and the owner.
We provide all the agreements and oversee the tenancy creation, making sure you get off on the right foot.
Once in, we can manage your tenancy, and if you choose to buy, we help guide you through the process, stepping in to help with decisions where necessary.
What if I need to sell my existing house first?
We can help!
We can put your property on an Adjoin tenancy, where you can set the purchase period to whatever suits your needs.