SALE AND RENT BACK

Sale and rent back or Sell and rent back is a form of Equity release involving the expeditious sale of your residence to a property company and renting it back from the new owner.

Advantages of this arrangement

• The value of the property can be released in a shorter time scale than that needed for a residential sale.
• No chain allows you to sell or move faster.
• Rent back option eliminates the need to move house.

Disadvantages of this arrangement

• The disadvantages are that the rent back tenancy is only guaranteed for 6 to 12 months with a month or so notice. Subsequent refinancing can see a new owner taking control, which adds to the uncertainty of tenure.
• Warning the market for this equity release option has swelled but the openness or longevity of the companies operating in it are questionable. In addition to short tenancy, the future of rent charged is unknown. Such companies advertise in the same media as sub-prime lenders, supplementing this with door to door leaflet drops.
• This method is not regulated in the UK by the Financial Services Authority FSA and there is no voluntary code of practice. However leading industry players are asking for it.

Speak to one of our advisors to discuss your options

Call now on 01162 912 478 to speak to an advisor.

Here to help you

Please ask any question in total confidence

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE.