Real Estate

Sell Your House For Cash And Rent It Back

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 who explained “Falling property prices are indicative of an economic downturn. The longer a house is held for, the less it is likely to be worth. It is possible to arrange a sell 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. 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.