Resolve Your Financial Issues Swiftly and QuietlyPosted by Eddy Flower in Property Sales, on July 21, 2015
Owning a dream home of your own would be the best investment that you could count to have come your way. However, the double bind of rising interest rates and bad debts may deny you the chance to own your dream house. But thanks to the sell and rent back schemes you can sell your house and still live in it. The growing number of sale and rent back property companies means that, many overstretched homeowners are taking refuge into these schemes that were previously considered as a nose dive to bankruptcy.
David Beard says: “A sale and rent back scheme allows the house owner to sell the property at a discount price to a private company which will then rent the property back to the seller at market rate”. This is a great advantage if you are facing large personal debts, fearing repossession due to mortgage arrears or you are simply desperate for a quick house sale. Sell and rent agreements offer a straightforward way out of many financial troubles without your neighbours or sometimes your family noticing a change.
Most sell and rent companies advertise these deals on the basis that they will be conducted swiftly and quietly. It is therefore a discreet process, implying that neighbours need not to know that a change in status has occurred. Your family will avoid the disruption and stress of having to find a new home while your children can continue to take the same route to the local school.
How to Sell and Rent Back your Property
In view of the financial plight facing their client, majority of sell and rent companies finalize the deal within no time. To facilitate a quick transaction, many take care of the administrative and legal fees themselves. Although the government has the Financial Conduct Authority (FCA) as its financial watchdog to ensure firms follow the rules, selecting a well reputed company will a guarantee a smooth and most appropriate transaction.
In order to enable you understand exactly what you are singing up to and what proceeds to expect from the transaction, the following procedures are normally followed:
- You need to make contact with the property company of your choice to discuss the requirement of the sell and rent deal. You can easily reach them through a website or over the phone.
- The rent and sell company will send surveyors at your property for evaluation. The survey will help establish the value of your property with most companies offering between 75% – 85% of the house market value depending on the condition of the house at the moment.
- After officially giving you their offer, the property company allows time for you to make up your mind. If the deal is good, the paperwork is sent to you for perusal before paying you a discreet visit to complete the necessary paperwork.
- Using a team of lawyers, the team will work closely with an independent solicitor chosen to represent you as the property owner to put the house sale into motion. Most property firms cover the solicitors’ fees.
- Once the sale is complete, it is the work of the solicitor to ensure that any secured loans and outstanding mortgages are paid off, or any fees incurred during the process. The remainder of the proceeds will be deposited into your bank account according to your instructions.
- Finally, you can now start paying rent on the date agreed upon as the scheme is a sale and rent.
It is always recommended to seek the most appropriate and independent advise before entering into a sale and rent agreement. Both parties need to seek for a fair deal agreed upon full awareness of each party’s rights and obligations. Always ensure that the company you chose to deal with offers clear and professional advice. A firm that boasts of extensive experience and enjoys the permission of the Financial Services Authority can be a good choice.
Also see: Secured loans for homeowners
Overwhelming debt, changes in financial circumstances and relationship issues where one party wishes to stay but the house has to be sold should not leave you struggling economically. Sales can go through in a matter of days rather than months as opposed to an open market enabling sell and rent schemes to offer a straightforward solution. You can now resolve pressing financial issues swiftly and quietly.