Frequently Asked Questions on How to Sell a House to Rent Back

How long can I rent the property back for?

Typically you can stay as long as you require, although no guarantees can be given to remain indefinitely. However, the longer you stay the better it is for us. We are in the business of renting properties back long term and are keen to have committed long term tenants who look after the property and love living there.

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

The price we offer depends on many factors, including the type and location of the property, its condition and also the rental potential. We normally require a discount off the open market value. The level of discount we aim for will depend on your specific property, but generally we will offer 80% to 85% of your property's open market value.

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

Usually we charge the average market rent in your area for properties like yours. However, we consider each case individually and will charge rent that is affordable to yourself.

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

Nothing. We will pay for your solicitor fees. There will be no Estate Agent's fees or surveyor's fees.

Is there a rental deposit payable when renting back?

Yes. We normally ask for a one month deposit to be paid at the beginning of the tenancy. The deposit will be repaid back to you on the day you decide to leave the property (assuming the property was not damaged in any way).

When is the rent payable?

We require the rent to be 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?

We use the standard Assured Shorthold Tenancy (AST) agreement that is commonly used by letting agents. You can typically rent back for the long term. At the end of each tenancy period, a new one will be signed, subject to both parties' agreement, to allow you to carry on living in the property.

Do you rent back to Housing Benefit tenants?

Yes we do. We can rent back to you if you are claiming income support as long as the Housing Benefit Department is happy with this arrangement. Every council is different and we advise you to check with your council directly first.

Would the rent increase over time?

Yes it will. We typically fix the rent for the first few years of the tenancy. The rent will start increasing, in line with the market rent inflation, afterwards.

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, we will be responsible for the Building Insurance and, in case of leasehold properties, the service charge and ground rent. We will also be responsible for servicing the boiler (if there is one) every year and take care of any heating system breakdowns.

How about the furniture?

The furniture remains yours. We are effectively buying the property from you without the movable furniture and renting it back to you unfurnished. However, in some cases, and if you want, we can negotiate to buy the furniture from you.

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. If you don't know one, we can recommend a good solicitor to act on your behalf and we will pay their fees.

Can the scheme be adapted to my personal circumstances?

Sure. Our sell and rent back house arrangements criteria.

How long does it take to sell the property?

About 3 - 4 weeks. In time-sensitive cases we can complete much quicker.

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 thier 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 avaliable here: rent back my house.

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