Sell and Stay at Home - Long & Short term Rentback options, UK

Sell and Rent Back - Home Rental Solution

Sell and Rent Back - A Flexible Property Rental Solution for the 21st Century

by Oliver Darraugh

Sell and Rent Back - A Possible Property Rental Solution Fit for the 21st Century

Purchasing a house using a mortgage loan is the greatest financial commitment that most of us will make in our lives. Most are able to manage to meet the monthly mortgage payments. There are others, however, that are unfortunate enough to experience major lifestyle changes (seperation, financial difficulty, redundancy) that end up making mortgage repayments hard to deal with. It's during these times that the choice to sell and rent back might become useful. The sell and rent back solution can provide homeowners with the ability to sell their home and then rent it back from the buyer at a price within their means. You may discover some buyers who even provide the option for the previous owners to buy back the home when their finances are in order. This is a great solution for homeowners that would like to continue to live in their current home as well as remain out of debt.

Commonly, property companies who provide this option take care of all the administrative and legal fees. The rent that is charged typically is kept to a level that is affordable and is typically set at less than what the mortgage payments are currently. The appeal of sale and rent back programs in the UK is because of many different factors:

The sale time is quicker than average to go through. This is because the property professionals hire specialized representatives that do their best to get the sale done fast. The buyer often purchases the home with cash, which will also quicken the whole process.

The sale and rent back option appeal mainly to those who are susceptible to possible repossessions. Different lenders will have different standards, but typically they apply for repossession around two or three months after arrears start. The companies offering the rentback service can help you to stop a repossession by directing you through the legal steps and giving advice on how you can delay the eviction. They will also finish the process before the eviction occurs.

The rent back method might also appeal to a much broader spectrum of people like those who are looking to release home equity. Many homeowners have been lucky enough to have cashed in on one or more property boom cycles and collected a good amount of money by way of property equity. A lot of the common equity release programs are inflexible and pricey. A buy to rent back option can provide a useful solution in those cases. Unlocking the equity by selling and remaining in the home will provide the freedom for many to travel around the world, better their lifestyle quality or maybe even purchase a vaction home.

Other people that could take advantage of this option are the ones that plan to move overseas. A common issue for people leaving the country is the timing on their house sale. It can be challenging when their visas are granted and their home overseas is waiting but their current home is not sold. By selling the house and renting it back this problem can be maneuvered earlier in the process allowing for a smoother relocation. Two additonal groups that might opt for the rent back option are those suffering from an illness or going through divorce. As part of a divorce arrangement it's not rare for one partner to want to live in the family house, but they don't have the income to keep up with the the mortgage. Deciding to sell the property and rent it back at a price they can afford could be the ideal solution in this situation. A sell to rent back solution also secures the home during difficult times when ill health means a loss of income. Rent payments can be taken care of by the equity released from the property and, if the financial situaltion gets better, there is always the option to buy the property again at a later time.

Oliver Darraugh is a freelance journalist online that writes and researches about UK mortgage deals and sell and rent back services. He makes his home in Birmingham.

Article Source: Right Article

Disclaimer: AC Investments are not authorised to directly advise on Sale and Rent Back (SaRB) arrangements from the 1st July 2009.