Sell your home quickly, Rent back fast

Sell my home and rent back is the new choice for many homeowners in the UK, and the reason for choosing this is as varied as the situations. One of the advantages of selling your home and renting back, is you can rent back your property for less than your mortgage and so reducing your monthly outgoings. You may want to consider this if for example you were made redundant and were unable to continue paying the current mortgage. It can last for a short period, like a short-term sell and rent back to provide you with temporary accommodation in your own home while you move in between two properties, or as a quick sale it can provide cash fast to solve some of your debts problems.

Releasing the equity tied up in your property through selling and renting back can give the money needed should you decide to emigrate, relocating for a job or another reason, and in some cases it can even stop repossession. How it works with repossession, is a company can help you with a quick house sale, and communicate with other parties involved about the amount you owe. Because mortgage companies have to ensure that the repayments don’t fall behind a set number of months, to repay the mortgage.

It can also help if you are divorcing or separating form a partner, so dealing with selling the property is one less thing to stress about. This form of selling property can also help you to get out of the property-chain, meaning there is no worry about not having a buyer if you are in a hurry to move, and some companies also offer to be the ‘back-up’ and become the buyer, should your current buyer withdraw for whatever reason.

While it can be a great thing to inherit a property, if it turns out that you need to sell it quickly, either because the cost of the upkeep is too high or other problems, releasing the equity through a quick sale might be a solution which can help.

Some of the disadvantages of sell and rent back, according to some people mean that if you ever had a mortgage then you never did own your own home, it was the bank. You won’t be the legal home owners either. However small or reduced the new rent is when the sell and rent back is completed, your home can still be repossessed if you fail to keep up the repayments. Sell and rent back doesn’t safe guard you from repossession completely, it is just an option for you to remain in the property if you wish, pay less on the rent but over an agreed time period.

However if the property you live in is owned by you, then eventually when all the repayments have been made, it will belong to you, along with all the equity! But this doesn’t apply to a rental property.
Also the disadvantages are reduced offer price of 75-90% of market value. Depending on which company you choose, for some there aren’t any guarantees about how much the rent will be, how long the tenancy will last and the industry as a whole is unregulated. Not to scare you with this story, but in some rare cases a home owner had paid inflated rent, and was later evicted six months later.

Some things to think about or ask when considering sell and rent back;
• Over time would the rent increase?
• Even simple things like the furniture, as if it stays.
• When is the rent payable?
• What is the cost of selling a house to a sell and rent back company?
• In contrast to an agents valuation, how does your offer compare?
• Check if there is a rental deposit payable.
• Can people with housing benefits apply to use sell and rent back?
• Ask how long it takes to sell a property.

Bearing these in mind will help you to feel more in control of your current situation, and allow you to stay level-headed and make the right choice for you.

But as mentioned above and in the previous articles, sell and rent back still remains popular for a variety of reasons. One would be convience, as most companies offer to pay for the fees and legal costs. Another is it can help with your career plans for example moving to the city or abroad, giving you the finances to go after your dreams. And even to stop you worrying about getting evicted or losing your home due to failing with mortgage repayments.

Filed under: SellRentback