We have just launched a Rent to Buy scheme designed to ease the transition from renting to buying a brand name.
How does our Rent to Buy work?
- With Rent to Buy, you rent a brand name for typically less than the market rate for up to five years.
- At any moment during the chosen time period, you have the option to buy the brand name.
- When you get to the end of the time period, you either buy the brand name or return the brand to us.
- When you apply to buy your brand name, you will receive 50% of the rent you have paid back plus 50% of any increase in the brand value since you started the rental agreement. That money can be used towards a deposit to buy the name.
Let’s make an example.
We currently charge 0.9% of the price of the name at the moment you sign a 5 years rental agreement. Thus, if a name is priced at $10,000, your monthly rate will be $90. Other rates for other terms apply.
Over five years you’ll pay $90 * 12 * 5 = $5,400
At the end of the rental period, the price of the name is $11,000, which is a $1,000 increase due to different market conditions, inflation, etc.
If you decide to buy, you will get back 50% of $5,400 = $2,700
In addition you will get 50% of the $1,000 increase, that is $500
Thus, you must now pay $11,000 – $3,200 = $7,800 to own the brand name.