Sell Your House For Cash And Rent It Back

March 16, 2020 Jeffery Bede

Secure A Quick Property Sale And Escape Financial Difficulties

It seems impossible to find a house buyer, and time is running out. Finding a property cash buyer would secure a quick house sale, but how is this possible? We put this question to Lillian Draper of www.javeaestateagent.com, who explained, “Falling property prices in Javea are indicative of an economic downturn. The longer a house is held for, the less it will likely be worth. It is possible to arrange a sale and rent back to a property cash buyer to get that all-important quick house sale.”

What is A Sell And Rent Back?

It is a private house sale. To secure a quick sale, a seller is offered up to 80% of the home’s market value. This can prevent repossession, and it is then possible to rent the property from the buyer at a more affordable monthly rate.

Is 80% Of Market Value A Fair Deal?

Many estate agents over-value properties, meaning that it is unlikely to sell for that price on the open market.
Avoid estate agent fees of between 1.5% and 3.5% by finding a property cash buyer.
There are no solicitors or survey fees as these are paid for by the cash buyer.
If it does take many months to sell in the current market, the price could fall substantially.
If a repossession order means that the owner stands to be removed by bailiffs next week a sell and rent back is a vastly better option.
Nobody will know that there has been a quick house sale as there will be no boards outside.

Stop Repossession From Taking Place

If you are struggling to sell a house privately, you can stop repossession by finding a property cash buyer. A sell and rent back will stop a repossession order in its tracks. No court will allow a family to lose a home when there is an alternative.

Potential Pitfalls Of A Sell And Rent Back

Only receiving 80% of market value can be a problem for some. As a property cash buyer, they will be paying a sum below market rate. A minimum of 25% equity must be available.
Look for the more established companies with better reputations, preferably those looking to establish a long-term rental relationship with clients.
Be wary of 6 or 12 months of assured shorthold tenancy agreements.
Market regulation is sparse, although this will change very shortly.

How The Process Works

A surveyor will assess the home and provide a valuation for the property cash buyer. There isn’t usually a charge for doing this.
Based on the valuation, an offer will be made upon selling a home to them. Normally, a rental package will also be agreed upon based on affordability.
If accepted, a solicitor will handle all the paperwork and finalise everything.
Once the survey and searches have been received, an exchange date will be arranged.
Complete and sign the tenancy agreement.

Although most people who use this approach are trying to stop repossession and escape financial difficulties, it can also be used to secure a quick house sale so a new home can be purchased. This is likely if someone has been trying to sell their home for a long time.