Sell Property & Rent Back Examples
Below are examples of some purchase prices and rent figures we offered recently to our clients involved in a quick sale and rent back scenario.
Example 1
| Property's realistic market value: | 100k |
| Offer price of: | 70k |
| Average rent payable in the area: | £550pcm (per calendar month) |
| Rent charged: | £500pcm |
Our client was charged a below market rent of £500 per month which was more affordable than the £600pcm he was originally struggling to pay for the mortgage and secured loans.
Example 2
Another client had a similar property as the above but could only afford £400pcm. It was agreed to fix the rent for two years at £400pcm to give him time to improve his financial situation. Part of the reduced rent cost was reflected in the purchase price:
| Property's realistic market value: | 100k |
| Offer price of: | 67k |
| Average rent payable in the area: | £550pcm |
| Rent charged: | £400pcm |
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.
