Frequently Asked Questions On How To Sell A House To Rent Back

How long can I rent the property back for?

Normally an initial 5 years tenancy agreement is signed that can be renewed at the end of the tenancy period subject to both parties agreeing.

How does the rent back price compare with an Estate Agent's valuation?

The rent back purchase price depends on many factors, including the type and location of the property, its condition and also the rental potential. Normally a discount is required off the open market value.

How much rent will I be paying if I rent back?

Usually the average market rent in your area for properties like yours. However, each case is considered individually and an affordable rent is always set.

How much does it cost to sell a house to rent back?

Nothing. Usually, all your solicitor fees are paid, if you use the recommended solicitor. There will be no Estate Agent's fees or surveyor's fees.

Is there a rental deposit payable when renting back?

No rental deposit is normally needed.

When is the rent payable?

Usually the rent is paid monthly in advance, except in some housing benefit cases where councils will only pay in arrears.

What kind of a tenancy agreement will be used?

The standard Assured Shorthold Tenancy (AST) agreement, that is commonly used by letting agents, is used in most instances. The initial term of the tenancy can be up to 5 years.

Do you rent back to Housing Benefit tenants?

Individuals claiming income support or housing benefit are almost always welcomed as long as the Housing Benefit Department is happy with this arrangement. Every council is different and you are advised to check with your council directly first.

Would the rent increase over time?

Each case is looked into individually. All terms are usually agreed upon with you before the sale proceeds..

What are the costs involved in me being a tenant?

Apart from the rent, you will also need to pay your bills (gas, electricity, etc.) and the council tax. Optionally, and if you want to, you need to pay for your Contents Insurance.

After the sale, the landlord is responsible for the Building Insurance and, in case of leasehold properties, the service charge and ground rent. He will also be responsible for servicing the boiler (if there is one) every year, issuing a gas safety certificate and take care of any heating system breakdowns.

How about the furniture?

The furniture usually remains yours. You are effectively selling the property without the movable furniture and renting it unfurnished from the landlord.

What are some of the benefits of the rent back scheme?

Sell house and rent back benefits.

Do I need a solicitor for the sale?

Yes. And if you don't know one, one can be recommended to act on your behalf and usually their fees are covered by the buyer.

Can the scheme be adapted to my personal circumstances?

Sure. See the sell and rent back house arrangements criteria.

How long does it take to sell the property?

About 4 weeks. In time-sensitive cases, a much quicker sale might be possible.

How does your rent back scheme compare to other options?

Here are some alternatives that might be suitable.

How does it all work with people going through a financial difficulty?

Dependent on how much equity left in the property, you might be able to sell your house and rent it back to release equity and pay off the debts.

How does the scheme appeal to people looking to release locked equity in their properties?

Please check our article sell my house and rent it back. Other options are discussed here

Does a rent back arrangement have anything to offer those preparing for emigration?

More info available here: rent back my house.

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