An Introduction To Sell And Rent Back
According to Council of Mortgage Lenders (CML) there has been an increase of nearly 65% home repossessions in 2006 when compared to 2005. The number of repossessions will also increase next year due to rise in interest rates, which has put up pressure on people’s ability to repay their mortgages. A recent research has found that hundreds of thousands of people miss at least one mortgage payment every year. Other circumstances like Redundancy, job loss and illness can also leave you in this situation. If Mortgage Company insists on starting repossession proceedings, then the best solution would be to sell and rent back your house. Sell and rent back means to sell your house quickly, repay your debts and stay in the same house as a tenant. With most sell and rent back schemes; you will receive an offer on your property within days and the sale will complete in a month or less.
You may be planning to sell your house due to financial difficulties, relocation, emigration, repossession, and retirement, Divorce or Bereavement. If you want to sell your house but don’t want to leave your friends and family or your children’s leave the school then the best solution would be selling and rent back scheme. Specialist companies can clear all your mortgage debts by selling the house and renting it back to you. You can then stay in the same house as a tenant, as long as you wish to for a pre-arranged rent which will be based on local market rates. Specialist companies do give you an option to buy back your home at a fair, pre-agreed price, if your financial circumstances improve.
If you sell your house through a real estate agent you can encounter many problems. It may take nearly three to twelve months to sell your house. By that time all your debts may be called off. But if you sell your house through a specialist company, the chain will never break. If you sell your house through a real estate agent you have to pay some fees, plus the cost of legal work. If an estate agent takes more time to sell the house it may lead to more complications and increase your costs. But if you opt for sell and rent back service, it carries no fees and your work will be completed in a few weeks. It may be stressful for people to search a new house after selling their house. But if they opt for sell and rent back scheme they can stay in the same house as a tenant without leaving it. A cash purchase can be combined with an agreement to stay in the house as a tenant, by paying fair monthly rental.
