Sale and Rent Back Schemes
What is Sale and rent back?
As the name suggests, this is a scheme that allows you to sell your house to a company for cash and then rent it back from them.
Sounds perfect – your debts cleared, no more repossession threats and you get to stay in your own home.
Any company offering these schemes must be regulated by the Financial Services Authority (FSA), so it’s worth checking before you sign anything.
Even though it sounds like the perfect solution, it does have its disadvantages.
The downside of sale and rent back schemes
When you’re being threatened with repossession, a quick sale and the ability to rent your home back sounds like the perfect solution.
But if you look in more detail at these schemes, you will find that many will offer just 40-50% of your home’s market value.
Plus, the tenancy period on your home may only be for a fixed period of 5 years. That’s a lot of equity to lose for such a short rental period. After the 5 years, it is at the discretion of the owner as to whether they want to renew your tenancy.
So what’s the alternative?
Sale and rent back alternative
There is another way to stop your repossession.
Sell or Yell offer a Sell with Rent Options service where you will receive a higher percentage of your property’s value to make sure you don’t face further financial hardship once you sell.
Not only that, we will also assist you in finding alternative accommodation.
Call us today on Freephone 0800 141 2275 or apply online and let us help you get back on your feet.