If you need to sell your property quickly and rent back
You may have heard in the news about people selling their house and then renting it back. Have you ever wondered why homeowners may need to do this? They may have many reasons to do this may include money & debt problems, equity release, divorce, Broken Chain amongst some of the reasons.
Selling and renting back your home is still a relatively new idea and has only been available for the last few years.
So what is involved exactly? How it works is a company sets up an agreement which will permit a the owner of a house to sell their home at a reduced price to the investor or company, and then rent it back for less.
One of the issues with this scheme, is that houses can be undervalued slightly depending on the quickness of the process. An example is a surveyor may give you a valuation based on tomorrow’s selling price, or the selling price could change depending on the market at the time of sell and rent back.
On the bright side there are also advantages decide to sell and rent back your property. It can help you to sell fast if you need to, reduce the risk of re-possession, and avoid countless viewings.
So sell and rent back can be tailored to suit and individual’s situation , and the contract can be short or long-term rental (with the option of buy-back). The rental rates could be at market rates, while the option of buy-back could be pre-agreed in terms of value.
