Sell & Rent Back Property Schemes – Facts & Alternatives
If you need, due to any reason, to release equity in your house without moving you typically have a number of options. Although a sell and rent back arrangement can be one of them it is not the perfect answer to everyone’s needs. Below is a list of alternatives and how they compare to the rent back scheme.
1. Sell Through An Estate Agent
The traditional approach of listing your property with one or more estate agents and wait for a buyer. The advantages of this approach is the fact that you will typically get an offer price close to your asking price. The disadvantages, however, are that you will have to leave the property when the sale completes and look for an alternative accommodation. If you will be renting, as opposed to downsizing and buying elsewhere, you will probably want to find a long term and stable rental package.
2. Consider An Equity Release Scheme
An option that might be open to exploring is an equity release scheme. These are schemes designed to allow you to sell your property (typically at 40% - 50% of its value) and stay in your property long term. They were designed mainly for a certain age group (above 55’s) and the low value they offer for the property make it unworkable for people who don’t have enough capital in their property to accept such a discount.
3. Sell & Rent Back
You can sell your property to us and rent it back on a long term basis. We normally offer up to 85% of the market value. After the cash lump sum you receive pays off your mortgage and other debts secured against the property, all the equity left over is yours. The sale is conducted swiftly and painlessly - much quicker than if you placed the house on the open market - and all your professional fees are taken care of by the company. We are looking to rent back the properties we buy long term and would prefer if you stay in the property for as long as possible.
As a tenant, some of the responsibilities of homeownership are lifted from your shoulders, which can be appealing if you are looking to reduce your workload. Protected by a tenancy agreement, things such as building insurance and heating system breakdowns are taken care of for you.
Our rent back package also allows you to buy the property back in the future if you wish to. We will go through the details of how the buy back works if and when your financial situation improves at a future date.
4. Remortgage
Traditionally, remortgaging your property has been the way to raise income from your home without selling. You can also take out a second loan secured against your property's equity. Both of these, however, involve taking on extra debt, and making higher monthly repayments. This leaves the homeowner exposed to future interest rate raises.
For many who simply want to access the free cash tied up in their homes without moving, incurring more debt might defeat the purpose.
To receive a FREE valuation of your property and a no obligation offer from us please contact us today.
