Divorce And The Family Home - How A Sale And Rent Back Can Help
Divorce is a life-changing and often painful experience. It raises issues such as what should happen to the family home. There may be a good case to sell your home and to split the proceeds of the sale between you and your partner. And if so, you'll no doubt want a quick sale.
But what if one or other of you wants to remain in the property after the divorce? It is at this point that, traditionally, divorce settlements become complicated. Thankfully, it doesn't have to be this way. All it takes is a different approach.
Selling your Home and Renting it Back
Selling your home and then renting it back is a quick and easy way to resolve the difficulties of dividing the family home up between partners in a divorce, where one partner wants to remain in the property and the other wants to take the cash and leave. It is a solution that delivers - both partners get their agreed share of the equity (after debts secured against the property have been paid off) as a cash lump sum, and the partner wanting to remain in the property gets to do so, at an affordable rental rate. In short, it is a win/win situation, or as much as it ever can be in a divorce settlement.
How the Sell and Rent Back Approach Works
Once you accept the offer, the process can move through very quickly. The term of the lease for the partner remaining at the family home is agreed first. This can be adapted to the needs of the individual, with an affordable rental payment programme to match. Upon completion, the mortgage and debts secured against the property are paid. The remainder is then split between the partners in accordance with the divorce arrangements.
Our Sell and Rent Back package can also help individuals passing through a financial difficulty.
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.