Rent-back and buy-back questions
Why sell and rent back?
Our clients choose to sell and rent back for many reasons. Some are in arrears or
facing financial difficulties and the only way they see to sort this out is to sell
their home. This means major upheaval for the whole family and often parents need
to change jobs and the kids need to change schools, which just makes matters worse.
As long as there is sufficient equity in your property to enable us to buy it then
we can consider a sale and rent back arrangement.
Our offers are always fair and if there is additional equity in your home over and
above our offer you will receive this in the form of cash back on completion or
reduced rent - or even a combination of the two. It may also be possible to make
arrangements for rent free periods - this can be a real bonus enabling you to get
back on your feet.
You may also have the option to buy back the property at a pre agree price later
on - perfect when you have sorted out your finances or won the lottery!
Debts aren't the only reason people choose to rent back; some are simply fed up
of faceless lending institutions, some have had the experience of repossession and
don't want to go through it again, some see it as a way to release cash tied up
in their property without the hassle of having to relocate somewhere else, and others
simply like the flexibility.
We have clients who aren't quite sure what they're going to be doing so selling
and renting back gives them the flexibility to make quick decisions about their
future and move when required; such as for a new job, relocation, emigrating etc.
In many of these cases it's possible to stay in your home rent free or at a reduced
rent until your new home is ready.
Does rent-back involve any added costs?
No. There are no extra costs such as legal or estate agency fees. We will however,
retain part of your payment as a deposit. Like any rented property you'll receive
this back when you leave the property or buy it back (less any costs for damages).
How much is the rent compared to market rates?
Your rent will compare to market rates based on similar types of property in your
local area. Remember, when we make our offer to you, you are under no obligation
or financial penalty to accept. We aim to find a solution which suits both parties.
If you're now my landlord, what are the terms and conditions?
Our contracts are based on a standard tenancy agreement, and all terms and conditions
will be clearly explained to you when we make our offer. Our aim is to be up-front
and honest; there are no hidden catches or costs. Remember, if you're unsure about
the legal wording you can get your own solicitor to look over the agreement - and
we'll pay their fees as part of our service to you.
What happens if I fall behind in my rent?
We hope that we will have found a solution where this won't happen. If it does,
you'll be subject to the terms and conditions set out in our tenancy agreement with
you. This will be clearly explained to you when we make our offer.
If I want to buy back my property, is that possible?
Yes. Remember, we will have agreed a fixed-price for you to buy your property back.
If your financial situation improves and you're able to buy your home back, we will
be more than happy to help.
How will my rent be collected?
We'll collect your rent by whatever method you're comfortable with (direct debit,
cheque, etc.). We act with honesty and discretion at all times. We'll ensure all
dealings between us are kept strictly private.
Are there any disadvantages?
There are of course downsides and for some the biggest disadvantage to selling and
renting back is not feeling like you own your own home any more. You will not be
the legal owners. However some people would say that if you had a mortgage on your
property now or previously you didn't own it anyway; the bank did!
If you don't pay your mortgage then the bank can repossess the property. They will
sell it and only return to you the balance of the equity AFTER all of their costs
and fees have been met - in the event there is a shortfall they will continue to
levy charges against you until the debt is repaid.
In much the same we, as your landlords, can repossess the property if you do not
keep up the rental payments.
Of course, if you do own your own home and keep up the repayments at some point
you will own it free and clear and all growth or equity is yours. This is not the
case with a rental arrangement.
However, you will be able to continue to treat the property just like you did when
it was your own home; usually you can decorate as you wish and make improvements
to the property. Many tenants expect to be there for a very long time and want to
feel 'at home' - we're happy with that too.
You do not even need to tell your friends, neighbours and family about your situation.
Our staff and Area Managers are very discreet and no one will know anything about
the arrangement unless you tell them.
What are the costs?
In terms of actual cash out of pocket it shouldn't cost you anything at all. We
will usually cover all of your legal bills involved in the sale.
There are no fees for valuations, agents or anything else to pay.
You won't however get the full market value for your property. But we do aim to
be fair and come up with a solution that solves your needs.
You may get more by selling with an estate agent but is that what you really want
to do as you will need to leave and find somewhere else?
How long will it take?
We usually complete the purchase of your property in as little as four weeks; sooner
if required.
Our past clients often remark how smoothly everything goes through. One minute they
are wondering what to do next, and then they contact A Quick Sale and just a couple
of weeks later it's all sorted.
A frequent comment is 'I wish I had done it sooner.'
Do I need a solicitor?
You are advised to seek independent legal advice from a solicitor before making
any major decision, such as selling your home.
We can give you names of solicitors who are used to dealing with sales such as yours
and are familiar with how we work.
This will also ensure a speedy sale.
This solicitor is acting solely for you and is bound by the Law Society rules. Neither
A Quick Sale nor the solicitor receives any form of incentive or commission for
this introduction. You are of course welcome to use a solicitor of your own choosing
if you prefer.
For free advice you may wish to visit your local
Citizens Advice Bureau (CAB)
who can offer independent advice to you on your options.
What if I am already in arrears of facing repossession?
Don't worry!
We are well versed in dealing with these most stressful of situations. We can arrange
to clear your arrears within a matter of just a few days; even the same day if required.
This usually results in repossession proceedings being stopped allowing the sale
to proceed at a less stressful pace.
In the event you need to attend court or complete legal paperwork your local associate
can help or even come with you. They can also deal directly with your lenders and
take the pressure off you.
The most important thing to remember though is that time is often of the essence
with debts and repossessions. The sooner you contact us the sooner we can take action
and the better chance we have of stopping repossession.
Not to mention stopping all those worries and stress!
How do I find out if you can help me?
See our Getting started page,
contact us
online, or call us on 0800 328 8239
(24 hour freephone number).
For "the small print" on how we manage the tenancy,
see here
Selling a house is supposed to be the most stressful thing that you can do, selling to you was the most stress free process we have ever been involved in! There have been many positive aspects to this transaction, no one in our area knows that we have sold our property – life goes on as normal, we still live in our home. The stress of meeting a huge mortgage has been lifted and replaced with a manageable rent. The equity from our property has been released – we now have money behind us which we would never have had. The business has had a cash injection and we are if anything over worked! My health has improved, as I no longer have the huge worry of trying to make ends meet.
Diane & Andrew, Bristol
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