Safety In Dealing With A Property Rent Back Option
You might want to know that the sale and rent back agreements are now fully regulated by the Financial Services Authority.
In a Rent back scheme, our company arranges to buy your house and gives you the opportunity to become a tenant for up to 5 years. Instead of paying a mortgage, you pay rent. The rent charged is typically less than your mortgage payment.
As can be guessed though, this agreement comes at a price. The price we pay varies dependent on your property type, location, etc. Usually, you can expect to get an offer of up to 70% of your property value.
If you decide that you only want to stay in your house for a short period, then you can, although we issue a maximum of 5 years tenancy agreements. This will give you the valuable breathing space that you need to be able to find another property that you can move to.
Care need to be taken not to confuse these buy house rent back schemes with the traditional 'Equity Release' approach.
Risk Warning: If you enter into a sale and rent back agreement you are unlikely to get the market value of your home and, as a tenant, may only be able to remain there for a limited period. There may be other options available. Please ask for a Key Terms Statement.
We do NOT offer the sale and rent back arrangements anymore. These arrangements are no longer authorised by the Financial Services Authority. No company can legally offer you a sale with a rent back. However, if you’re interested in selling without renting back, please get in touch with us today as we will be able to make you an offer.
