As Kimberley

Why you could need to sell your home quickly and rent back

You may have heard in the news about people selling their property and then renting them back. Have you ever wondered why homeowners would need to do this? They might have many reasons to do this might include  money & debt problems, equity release, divorce, Broken Chain amongst some of the reasons.

Renting back your property after selling is still a new concept and has only been available for the last five years.

So what does it mean exactly? The fact is is a landlord sets up an contract which would permit a the owner of a home to sell their home at a reduced figure to the investor or company, and then remain in the home as a tenant at market rates.

Unless you have been hiding in a cave, you would have noticed that the housing market, though still slow, may actually be picking up. Some areas might be getting better.

One of the problems with this scheme, is that property can be  undervalued slightly depending on the quickness of the process. An example is a valuer may give you a valuation based on tomorrow’s selling price, or the selling price may change depending on the market at the time of sell rent back.

On the bright side there are also advantages if you choose sell and rent back your home. It could help you to sell fast if you need to, reduce the risk of re-possession, and avoid countless viewings.

So sell rent back can be tailored to suit and individual’s needs , and the contract can be short or long-term lease (with the option of buy-back). The rental rates could be at market rates, while the option of buy-back may be pre-agreed in terms of prices.