Sell And Rent Back

Would you like to sell your property but still remain living in your home as a tenant paying rent? The sale and rent back scheme is now regulated by the Financial Services Authority (FSA), which means that all firms currently offering this service have been thoroughly vetted to ensure they are honest and ethical companies.

What does Sale And Rent Back involve?
You sell your home to a FSA regulated company to clear your mortgage and secured loans, but you can then remain living in your home by paying a rent you can afford.. This process allows you to unlock the equity from your property – which you can then spend on whatever you wish - a holiday, outstanding medical bills, or simply to reduce your debts and monthly outgoings.

The buyer of your home will then become responsible for maintenance and upkeep of your property (they are even required by law to have your gas boiler checked on an annual basis).

Is sale and rent back suitable for me?
When we pass your details onto an FSA authorised sale and rent back provider, they will then contact you to discuss your available options, such as the sale price of your property, and the rent you will pay. The sell and rent back service is not suitable for everyone, and the FSA requires that the provider ensures other options available to you have been considered, and you going to be able to pay the agreed rent.

Your home must have sufficient equity (the market value of the property less your mortgage and any secured loans) in order for you to be able to sell and rent back your home.

Advantages of Sell and Rent Back
- No more worries about being chased by lenders and loan companies
- Continue to live in your home without the hassle of having to move
- Your neighbours will never know you have sold and rented back your property unless you choose to tell them.
- You can have the option to “buy-back” your home at a future date and at agreeable terms.

Disadvantages of Sell and Rent Back
- You will no longer be the owner of your property (unless you choose to buy it back at a later date).
- You may also become ineligible for certain state benefits - but the FSA authorised firm will help you in checking this prior to agreeing the sale of your home.

Can I still stop repossession of my home?
Even if you have been issued with a repossession order, an FSA authorised sale and rent back provider is still able to stop a repossession by writing to the lender and asking for extra time to allow for the sale and rent back transaction to complete.

How long can I remain living in my home for?
The FSA requires that you are offered a minimum of a 5 year rental agreement. You can, however, terminate the agreement earlier if you wish. However, under the new FSA regulations, the sell and rent back buyer is not allowed to terminate the agreement early unless certain grounds have been agreed in court (eg – you have continually failed to pay your rent)   

Click here for more information on the process of selling your property to Quick Sale Houses cash property buyers.