Archive for rent back
May
02
The Financial Benefits You Can Have When You Sell and Rent Back
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Many people are facing desperate times in the current housing market. Because of these desperate times, they are putting their homes on the market. After they have found a buyer, they often do not know where to go. Some are left homeless, while others have to go live in sub standard housing. It is important for these people to realize that there are companies that allow owners to sell and rent back.
First, it is important to understand what this means. There are cash buyers available that are looking for investment property. Certain companies match people with the cash buyers, who then purchase the home. After the home is purchased, they can then rent it back to the former occupant. This creates a situation where everyone can win. The buyer has investment property, and the person who did own the home still has a place to live.
Most property is available for this type of transaction. In fact, a lot of companies will buy properties “as is,” so owners do not have to worry about getting property ready for a sale. Also, they do not have to worry about moving in many cases. It allows for a situation that is not nearly as demanding as the typical real estate transaction, as there is less preparation and little hassle. That makes it very enticing for many people who are facing financial trouble and need help.
When looking for a company that will allows customers to sell and rent back, it is important to find a company that charges fair fees. Some businesses take advantage of the situation and charge high prices to their tenants. As people who are using this service already had to sell because they were in a financial situation, this is not a good idea. It is not going to help the people get back on their feet.
It is also important to find out how long the company will allow their tenants to stay in the property. Some places will evict their tenants after as little as six months. For many people, that is not long enough to get their finances in order. Other companies will allow people to stay indefinitely.
When searching for a company that allows people to sell and rent back, it is also important that an agreement is offered. When tenants have the option of putting it in writing, they know that they do not have to worry about being evicted. It makes the process much more secure for the tenants. A legitimate company is going to give their tenants the option of having an agreement in writing.
Beese Properties offers all of this to their customers and more. They base their fees on the market value, so they do not overcharge their tenants. They work with their tenants so they can stay on the property as long as they wish. Tenants also have the option of signing an agreement with them. For more information on how to sell and rent back, visit them online at http://www.beeseproperties.com.
Repossession
Apr
28
In the wake of the current property crisis, homes are being repossessed by the hundreds every week in the UK alone. Many home owners are failing to make their mortgage payments every month due to a variety of reasons including rising interest rates and their fixed rate mortgage’s coming to an end leaving them with their monthly payments doubling in some cases – clearly not good news for any home owner.
While many are left in hopeless situations of which there appears to be no way out, it may well be worth their while contacting a reputable property buyer who can either offer them a very quick sale of their property (and the repossession proceedings stopped altogether) or a quick sale and rent back of their property, meaning they will have the ability to remain in their home not as a home owners but as a tenant at the same time as avoiding repossession.
Surprisingly (and unbeknown to a lot of people), the repossession proceedings can be stopped even in the very latest stages if a property buyer gets involved. These companies are experienced in stopping repossessions and manage to successfully prevent hundreds of repossessions taking place on a weekly basis, so you can be sure that if anyone can get you out of your current crisis, they can.
The one thing to look out for is to ensure you get a reputable property buyer (and I emphasize the word reputable). The bad press recently given to the sell and rent back industry has been bought about by a small number of individuals who have failed to fully explain the ins and outs of selling and renting back a property to the homeowner. Unfortunately, this has had a knock on effect on the reputable property buyers out there who genuinely want to help hundreds of people in distress to make the best choice about their current situation. You can use our comparison chart located on our website (follow the link at the end of this article) to help you to judge whether the buyer you are considering fits the criteria of a reputable property buyer.
The idea of sell and rent back is quite basic, the property owner, who for whatever reason can no longer afford to own the property they live in sells the property to a property buyer. The property buyer is different from conventional methods in that they ensure the sale completes within just 28 days (various property buyers differ, but this is our companies current time scale) and a good one will also liaise with the courts on the sellers behalf if they are facing repossession to ensure that the proceedings are stopped immediately. The courts are happy to halt proceedings in most cases as they are aware how quickly a reputable property buyer can move due to their unique purchasing and financing techniques. The homeowner then becomes mortgage free within a month and becomes a regular tenant on an assured short hold tenancy agreement. The property buyer becomes their land lord.
There has also been some bad press lately concerning the fact that a lot of property buyers end tenancy agreements almost immediately leaving the seller homeless. However, do not be deterred straight away, simply ensure that the property buyer you choose is 100% genuine and fully explains everything to you which you need to know. Do not be afraid to ask questions, you have a right to.
Any property buyer worth their salt (us included) can see the great benefits of holding on to investment property for as long as possible even throughout the current climate and beyond. The investors our own company works with actually want properties which they can keep for the long term. The current fall in house prices and rise in interest rates is actually doing the sell and rent back market (and its upcoming customers) a huge favour in that it is weeding out the ‘bad guys’ who are in it only because they once thought it was a good way to raise a quick buck. Those investors are now panicking to sell their investment properties off as they are scared they may loose money – the reputable ones are in it for the long haul, still buying and helping out those in need and not selling a single property. They know that the property market moves in cycles and always has done, and they are not worried by the short term crisis the UK is facing. As mentioned before – they want properties for the long term and do not sell at the first sign of trouble.
There are various reasons why people do choose to sell and rent back their property. Many people want to unlock the value within an asset without having to take on any extra debt. Many people may not be able to refinance (e.g. credit problems, previous bankruptcy, arrears etc) and sale leaseback is the only way to release the money and retain the use of the property. Sale leaseback also gives the previous owner the flexibility to move out and go and do other things without worrying about the property or looking after major repairs.
Here are
just some of the benefits:
1. Repossession proceedings are
stopped
2. Credit rating is not further
tarnished
3. The seller may end up with more money from a property investor as opposed to having the house repossessed and ending up with nothing
4. The seller could reduce his or
her monthly outgoings to a much more manageable level. In many cases the cost of the monthly rent following the sale is less than the previous mortgage payments were.
It is important that if you want to avoid repossession, you contact a reputable property buyer ASAP. Although they can help even at the last minute, obviously the more time you do give them the better the chances of them being able to do something for you.
In my opinion repossession should be avoided like the plague if there is any possible way it can be, and if you have equity in your property that possibility is there. If nothing else, I urge you to get a free cash offer and have a chat to an advisor about your options. As with many things in life, knowledge is everything when it comes to making the right choices.
Sell and Rent Back
Apr
21
Why Sell And Rent Back Home Is A Good Idea
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There are so many ideas that you would come across when you are trying to find a way of dealing with the debt and financial issues that you would be facing. However, you would need to examine the advantages that would come with any option that you are thinking of taking beforehand.
We would try to examine some of the reasons why you would just need to find someone to sell your home to and request to remain in the home just as a tenant, when the problems you are facing touch on the home mortgage.
Sell and rent back home enables release of equity
Once you are in so many debts, you would need something that would help you release the equity so that you are able to pay off some if not all of these debts. Also, when you have the equity released, you would be able to settle your divorce is at all you were in the process of getting one and all these would be done when you have to remain in the home.
Sell and rent back home allows you to resolve pressing issues
What other issue would be more pressing than finances? By the way, financial issues are the roots of other problems that people have. When you sell your home, you would have some cash because you would sell to those who offer quickest services. This would allow you to pay off the mortgage, settle other small unsecured debts and live your life in the same home as normal.
When you sell and rent back home, you escape pending eviction
When you are evicted from your home, you would feel small and worthless. This can affects a number of aspects of your life. However, you can be smart and escape all these by simply accepting your situation and selling the home, renting it back and if possible, buy it back when your situation gets better.
Sell and rent back home when there is no other way
Of course, it is normal to get into a situation when you have no other way out. You would be happy when you can at least avoid taking in more debts and you try and clear what is pending. Sell that home; be inside it as a tenant and soon, you will be able to reorganize your life for better.
Sell and rent back home has best timescales
When you are desperate, you would need money like yesterday. You would want a solution that is real time and that would help you have peace soonest possible. You can choose to have such a solution by finding a buyer who would buy your home in the timescale that you would stipulate.
Sell and rent back home can help you have back home
Since you would still maintain your stay in your home though as a tenant, you would realize that what you need to do is probably to work harder and later or discuss with the buyer on the option of having his sell back the home to you. It is actually possible at no extra cost.
Sell and rent back home is a quick property sale scheme
You do not have to be in a fix to sell your home. Maybe you have realized that you need to relocate or you just don’t want to have the home any more as an owner. You however may have not cleared the mortgage. This scheme would help you sell the home in the quickest time possible.
So, if you think that you need to take the sell and rent back home scheme, you would have to find just the right place to take the service from.
Rent Back
Apr
20
Tips on How to Sell and Rent Back Your Home
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Is the ghost of repossession haunting you?
The sell and rent back scheme was born into the property market around 2006 in response to the fear of thousands of homeowners losing their homes. The idea of sell and rent back your home is basically a rescue from repossession. If the homeowner is struggling financially it is possible to turn to an investor and offer their home for a quick sale but with the benefit of being able to stay living in the property paying rent.
About 6-12 months later, the sell and rent back scheme evolved to help the homeowner even further. As many people had built up a lot of equity in their homes over the years, a new buy back option was introduced. This provided a huge benefit as it gave the struggling homeowner the option to buy back their home once they had sorted out their finances and therefore keep the vast majority of the equity for themselves.
However, once the homeowner has decided to take this path of sell and rent back, it is very important to be aware of some potential problems and the way in which they can be prevented:
Fee Payments
All fees in the sell and rent back scheme are paid for solely by the buyer. These include the survey and the solicitor costs. Be aware of any fees the homeowner is being asked to pay. The main reason for this is if the sale fell through, any fees paid will be lost.
Sudden increases in rent
It is very important the tenancy agreement is thoroughly read before completing on the sale. Make sure the agreement states that the increases are a maximum of twice a year and in line with inflation. Many unscrupulous companies offer a decent rent for the first six months and then on renewal of the agreement, hike the rent so high that the tenant has no choice but to move out.
Sale of the Property
Be aware that once the property has been sold the new owner can sell the property at any time forcing the tenants to leave with just two months notice. If the sell and rent back scheme was a part of the sale it is very important to ask for a restriction of sale agreement. This agreement prevents the buyer from selling the property without written authorization from the tenant.
Although there can be some pitfalls along the way, there are also many advantages in opting for the sell and rent back scheme. The first and most important is the homeowner will not be repossessed. There is always the option of selling the property on the open market; however this can take up to one year for the sale to happen in the present market. It is imperative that the homeowner write their finances down on paper and check if this solution is viable.
Another advantage is there is no cost involved for the homeowner who at this point cannot afford any extra expenditure. A third advantage would be total discretion. No one will know and the homeowner’s daily life will not be disturbed.
With home repossessions on the increase and at the highest level in years, the sell and rent back scheme definitely is an option to be considered at the first symptoms of a financial problem rather than leave it to the last minute.
Beese Properties is a well established property company which offers all of the above. They look for the best solution for the homeowner and if the sell and rent back scheme is the best option they will base the rent on the current rental market in the area. For more information, visit them online at http://www.beeseproperties.com.
Repossession
Apr
19
2 Reasons Why Selling and Renting Back May Not Work
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If your property has a high value
It is often difficult to get properties of a high value to work with sale and rent back. A high value in this case is difficult to quantify due to the differences in property prices nationwide but anything over about GBP 250K outside of London may not work as a rent back.
This is due to the fact that the monthly rent for higher valued properties is often low compared to the properties price. This means that the rent back company would not be able to receive enough rent to cover the financing required to buy such an expensive house. Therefore, the only option for the rent back company would be to buy the property at a lower price so that the rent covered the cost in buying it.
This is very mush dependant on the area you live in so please contact the rent back company to discuss. Once again, you should never pay them anything upfront so any advice they give is free and without obligation. It is therefore always worth asking questions.
If you plan to use Housing Benefit to pay your rent
If you sell your property and receive a cash lump sum as a result of this sale, any housing benefit you were previously entitled to may be reduced or taken away altogether. As far as the council are concerned, they will not keep paying the rent if that person has a lot of money in the bank. Different councils have different rules on this so you need to check before you do the deal if you plan to claim housing benefit after you sell and rent back. For example, some councils have a higher threshold than others (i.e. some will reduce housing benefit for any savings over GBP 8,000, some will be higher and some lower).
Some councils also stipulate that previous house owners are not entitled to claim Housing Benefit for a property they have owned in the past 5 years. This could leave you unable to pay your rent and in danger of being asked to vacate your property. Councils will often waive this rule if you are in danger of repossession and can prove you had no choice but to sell your home. However, once again it is important you check this before entering any agreement. A good sale and rent back specialist will be able to help you in this as it is in their interest to know their future tenant will be able to pay the rent.
Rent Back Fast
Apr
16
Sell and Rent Back Your Property - Ten Common Questions
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There is currently a great deal of interest from homeowners who want more information on Sell and Rent Back schemes, people want to know all about Sell and Rent Back, what it is, how it works and who it’s suitable for. At the independent comparison site http://www.comparepropertybuyers.co.uk/ we have drawn up answers to the following commonly asked questions.
1. What is Sell and Rent Back
Sell and Rent Back is a fast growing Industry where you sell your home to a Property Investor but instead of moving on you stay in your home as a tenant renting it back from the Investor who purchased it from you.
2. What is a Shared or Part ownership Sell and Rent Back Scheme?
One of the most advanced Sell and Rent Back schemes is known as a shared or part ownership scheme. With such schemes you sell some of your home to an investor whilst retaining a share yourself. This gives you the benefits of security of tenancy whilst keeping a financial interest in your home, if property prices go up your share goes up too.
3. What are the main Advantages of a Sell & Rent Back Schemes?
Sell and Rent Back can be a way of either raising capital or avoiding repossession and staying in your home. You may need to unlock your capital from your home to clear any debts you may have or to fund a better retirement. Sell and Rent Back schemes can also be a way of funding your retirement without having to sell your home.
4. What are the main Disadvantages of Sell and Rent Back schemes?
First and foremost is the fact that most Investors who offer sell and Rent Back will usually only offer you up to 80% of the value of your property. This is because most Investors take the prudent view that property prices will fall still further.
Some Sell and Rent Back Schemes do not guarantee you a long term rental period, always take legal advice before entering into a Sell and Rent Back agreement and if you want to rent back long term make sure you have a written contract guaranteeing your right to stay. You should also agree a fair market rent in writing.
5. What Legal Protection do I have?
You should always take professional legal and financial advice before entering into any Sell and Rent Back scheme. Always have a Solicitor to represent your interests and oversee all of the paperwork. If you want to guarantee your long term residency make sure you get an agreement in writing which is approved by your Solicitor.
6. How much does a Sell and Rent Back Scheme cost?
Sell and Rent Back schemes should not cost you any up front money whatsoever. A reputable investor will usually pay for the cost of a valuation and any legal fees. The investors will eventually make a return by either selling the property or by charging you what ought to be a fair market rent.
7. How quickly can I Sell my House and Rent it Back
Most Investors are cash buyers actively looking for property investments and Sell and Rent Back opportunities, they can often act very quickly and purchase within one month.
8. Will I need a Hip (Home Information Pack) to Sell and Rent Back?
If you sell your house to an Investor you will not need a Home Information Pack as it is classed as a private sale, this should save you several hundred pounds.
9. I am very close to being Repossessed can I still Sell & Rent back and stay at home?
You can sometimes avoid repossession if you reach an agreement to sell and rent back with an investor. Even if time is short an Investor will either pay cash and aim to complete within a week or so. Alternatively the Investor may apply to the court to stop your repossession order to give you time to complete your sail. An investor can usually only help in cases where there is a minimum of about twenty percent equity in the property. If you are facing repossession make sure you get independent legal advice before entering into any agreement.
10. Where is the best place to find a Sell and Rent Back Scheme?
There are many Investors advertising on the Internet via search engines such as Yahoo & Google or you could always go to the comparison site Compare Property Buyers for a quick no obligation quote.
http://www.comparepropertybuyers.co.uk/ is the only Independent Comparison site for Sell and Rent Back Schemes and offers general information on Sell and Rent Back schemes along with a Free, No Obligation, Comparison service.
Rent Back
Apr
15
Sell and Rent Back Schemes
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Sell and rent back scheme is a tax-free scheme, which allows you to release the equity, tied up in your property without having to move out. When you sell your home to a house sales specialist you can join their rent back scheme. This allows you to remain in your home for as long as you wish but as tenants rather than owners.
Rent Back Schemes are ideal if you find your self in any of the following circumstances:
Retirement – if you have reached retirement or are planning to retire and want to release the equity that has built up in your home, so you can enjoy retirement, but don’t wish to move. This will be an ideal scheme for you and you will always be given the opportunity to buy back later at a pre-agreed price if you want to.
Financial Difficulty -If you are having difficulties trying to keep up repayments on loans or your mortgages a house sales specialist will be able to help. They will quickly buy the property from you giving you a cash sale and allow you to remain as tenants at a rent you can manage to pay. They can even stop repossessions, right up to the very last minute, if your home is at risk and allow you and your family to stay in your home. If the financial problems are just a temporary set back, again they can agree to sell your home back to you at a pre agreed price, in the future, if your circumstances change.
Emigration - If you are planning to sell up so that you can move away. You will find that you have enough things to worry over without having to be concerned about broken chains, deferred sales or sales falling through. A house sales specialist can buy your property quickly from you and allow you to stay as a rent-paying tenant until you have made all your preparations and are ready to go to your new home.
If for some reason you decide not to move on and want to stay after the sale you will be welcome to stay as our tenant or you will be given the opportunity to buy back your home.
You may also decide to sell and rent back if you have health problems and want to fund an operation, divorce or separation, or even if you are a landlord who has problem tenants. If you have a commercial property and wish to release equity a house sales specialist can offer you a similar deal so that you can sell, rent back and still run your business.
When I discussed the possibility of these schemes with company operating in this manner in Leicester, An Instant Sale, I was told that selling in this manner is quick and discreet and the your friends, family and neighbours will be none the wiser, unless you tell them.
The rent is set in line with current market rents; you can fix the rent and the term. They pay for your buildings insurance, and a Corgi registered engineer will service your boiler each year.
Repossession
Apr
13
Financial Hardships Can be Solved by Selling and Rent Back Scheme
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Due to increase in interest rates and bad debts, homeowners have to sell and rent back their property. In sale and rent back agreement the home owner will sell the house at a discounted price to a specialist company and they will rent it back at market price to the homeowners. Homeowners generally sell their house due to repossession or bankruptcy, separating or divorce or just needing to free up the equity in your property, but still you want to live in that house so you can pay rent every month to the specialist company. Sell and rent back companies will buy your house as soon as you want, sometimes within three days and then rent it back to you. Specialist companies will buy any property like repossessed properties, bankruptcy, flats, Terraces, properties with sitting tenants, rural and farm buildings, industrial property, fire damaged property, domestic properties and commercial, retail or office units.
Selling and rent back is a very good option for home owners during hardships. Due to financial crisis you are not able to pay monthly mortgage payments then you can solve your problem by selling your house quickly as you need cash and just rent it until you release your home. In some cases, your money is tied up while buying a house and suddenly some unforeseen expenses arise then you can just sell the house and then rent it back. You can buy the house later. You’re at a point where you want to actually take a divorce but you are not in position to bear divorce expenses, at that time you can sell your house and take that money to pay off divorce expenses. After the agreement, you can pay the rent and stay at that house and buy back later.
You might have purchased your dream house, but now you don’t have cash to bear those moving expenses, then you can talk to a specialist who will buy your house and you can bear your moving expenses and then you can buy back your house. You might have purchased house when you were young but after retirement you are not able to pay the bills, then you can sell your house and use the money to pay your bills and stay in the same house for rent. Your children may buy the house after your death, thereby keeping a family house.
Real Estate Professionals
Apr
09
Selling and Renting Back Your Home - 10 Questions You Must Ask
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1. How long can I stay living in my property?
This is probably the most important question for you to ask any Sale and Rent Back Company. If you want to stay in your property indefinitely it is important to make sure that it is also the intention of the company you are dealing with to keep you there indefinitely. They should provide this in writing, in both letters of intent and legally binding tenancy agreements.
2. Do I have the option to Buy Back and what will the Buy Back price/formula be?
Even if you can not foresee a time when you would be in a position to buy back your property it is worth asking this question and getting it put in writing. You never know when your circumstances might change and you may want and be in a position to buy your property back. Whether a company is prepared to offer you the option to buy back is also a good indicator of their intentions. If they are not willing to give you a buy back option you may want to question how concerned they are about keeping you in your home long term. An important part of the buy back option is what the price or formula will be for this. Some Companies offer a set buy back price for a certain number of years, others offer a percentage of market value and others a “premium” which is a set amount they expect you to pay above what they have paid you for the property. Whichever of these options is used for the buy back price or formula, you need to make sure you understand and are happy with it, and get it in writing. It is also worth doing the calculations and making sure that you do not end up paying more than the market value for your property when buying it back.
3. Will there be a Tenancy Agreement in place?
It is absolutely vital that there is a legally binding tenancy agreement in place for your property, otherwise you will have absolutely no protection and could be asked to leave the property at any time.
4. Does the Tenancy Agreement have the option to renew at the end of each period?
An Assured Shorthold Tenancy Agreement (AST) will be for a fixed term, typically 6 months, 1 year or 2 years. If it is your intention to stay longer than this then make sure the AST includes the Right to Renew, meaning at the end of each term as long as you have abided by the terms of the agreement you would have the legal right to renew for another (and consecutive) terms.
5. How long is the rent fixed for and how is it reviewed?
When accepting an offer for Sale and Rent Back make sure you ask (and get in writing) how long the agreed rental will be fixed for. It should be for the length of the initial tenancy, so make sure there are no break clauses in the tenancy agreement that would allow for rent increases before the term is up. Make sure you understand and get in writing how future rent increases will be calculated. This may be every 1 or 2 years which is normal, but it is important you know how this will be calculated and that the company is not free to suddenly increase the rental to an unaffordable level.
6. Do you intend to sell my property in the future (what are your intentions)?
Just asking this question should give you some understanding of the person or company’s intentions towards you and your home. If you are in any doubt about their intentions or their honesty think very carefully before entering into a Sale and Rent Back arrangement with them.
7. Who looks after repairs?
This should be clearly stated in the tenancy agreement. Make sure you understand exactly what the Sale and Rent Back company (your new landlord) will look after, and what will be your responsibility.
8. Will I have independent legal representation throughout the sale?
It is important to make sure you have legal representation independent from that of the company you are dealing with. Most Sale and Rent Back companies will offer to appoint a solicitor for you and pay the legal fees, however this should be separate from their legal representation. This way you can be assured you are receiving impartial legal advice.
9. Are there any fees? Do I have to pay anything upfront?
You shouldn’t ever have to pay any fees when selling and renting back your home. If a company asks you for an upfront valuation fee, run! Some less reputable companies are in the business of taking the valuation fee, making you a ridiculously low offer, and then keeping your valuation fee when you don’t accept their offer. A reputable Rent Back company should be able to provide you with a quotation or offer without asking for a valuation fee. You shouldn’t pay any fees at all for the sale process, all good Rent Back companies will pay all costs including your solicitors fees as part of their service.
10. Can I see references from people who have used your service?
Any good, reputable company should be able to provide you with testimonials from current clients. Make sure you read these carefully, and are sure that they are genuine.
Sell and Rent Back
Apr
02
House Repossession Sale, Need to Sell Your House to Stop Repossession Free Advice & Tips
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If you are looking to sell your house to stop repossession you may have already noticed that today’s current property market is not a liquid as it once was, it has hard to find buyers and most people that would like to buy are unable to get mortgages. This becoming a common problem for property owners who need to downsize their accommodation to avoid repossession due to the high rise in the interest rates in the UK.
But there is a solution to this problem, new company’s are being set-up to help tackle the repossession crisis and doing so by the ever increasing in popularity “Sell & Rent Back Schemes” these schemes enable the individual or family affected to be able to sell their property quickly to an investor for a percentage of the market value in order to avoid repossession and clear any associated debts with the property and remain in the property as a tenant.
This does include clearing all the debts associated with the property including the outstanding balance, any secured loans associated with the property as well as mortgage arrears, and of course if you do have good equity in your property you will be left with spare cash also.
The reason that this kind of scheme is increasing in popularity is due to the alternative root that would happen if the lenders continued on their path of eviction and repossession in eagerness to re-coup as much of their money as fast possible property’s that have been repossessed are normally auctioned, the main problem with this of course is that they usually go for much less than their market value and anything outstanding that the property sale did not cover will continued to be chased by the lender and legal action will still be pursued until they get their payment in full.
go now to http://www.avoidhomerepossession.co.uk/
Rent Back
