Secure A Quick Property Sale And Escape Financial Difficulties
What is A Sell And Rent Back?
It is a private house sale. A seller is offered up to 80% of market value home to secure a quick house sale. 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 struggling to privately sell a house it is possible to 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 they are 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 assured shorthold tenancy agreements.
- Market regulation is sparse, although this will change very shortly.
How The Process Works
- A surveyor will come round to 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 based upon selling a home to them. Normally a rental package will also be agreed at this stage based on affordability.
- If accepted, a solicitor will deal with 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 that use this approach are trying to stop repossession and escape financial difficulties, it can be used to simply 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.