There is a scheme called Sale and Rent Back. This means that a company buys your house and rents it back to you. Many different businesses are providing this service, but you must look carefully at what they are offering you.
There are a handful of companies who offer this service. You need to ensure that the company you approach has interim regulation by the FSA and employ specialists who have experience in the property market.
What is the FSA? What does it mean to me?
The FSA is the Financial Services Authority. They regulate organisations such as banks, building societies, mortgage advisors and they now regulating the Sale and Rent Back Market. If a company is FSA regulated it means that you can be confident that they have been deemed to trade honestly, openly and with the best interests of the client. For more details please FSA's website.
What do you mean by Personal?
From the beginning you need to make sure that you are not dealing with a call center. You will require a personal representative assigned to you from the outset. Someone who is a property specialist who can understand your situation and continue to personally manage your case. This is really important to have a person who calls you, visits you and that you can always contact directly. You must feel comfortable asking them any questions or queries you may have.
What should I expect if I call a sell and rent back company that has interim authorisation?
When you're in a financially sticky situation, sometimes you need things to move along at a fast-tracked pace. If you speak to an Sell and rent back advisor today; they will ask questions about your home and your situation (please be entirely honest, they will not judge you, they are here to help and have heard much worse.) A company should be able to make you a provisional offer over the phone immediately and arrange a viewing within 48 hours.
If at the meeting you decide you would like to go ahead, contracts and tenancy agreements are signed and exchanged shortly after. The sale of your house can be completed in as little as 48 hours from your first call. You will then be able pay back your mortgage and debts secured on the house and give you the remaining equity. You are then free to rent back your house for as long as you like. Once you are back on your feet you some companies even give you the chance to re-buy your house from them but you need to make sure this is possible from the outset because not all companies are the same.
What are the facts and figures?
Most Sale and rent back companies purchase property at 60-70% of its market value. Generally most will pay all the legal fees. There are no costs for you to cover. The monthly rental figure will be agreed in advance by yourself and the sale and rent back company. You will find that most sale and rent back companies will cover all maintenance fees on the property.
How do I get started?
Contact a Sale and rent back company and either fill out the online questionnaire or simply give them a call.