A decade of rocketing house prices could mean a big chunk of wealth is tied up in your property – and you can unlock it if you sell and rent back.
Ten years of rapidly rising house prices mean that millions of Britons now have thousands of pounds worth of wealth tied up in the properties they own – wealth that can be difficult to tap into without a lot of hassle, patience and inconvenience. Many people are unlocking the profits in their property by choosing to sell and rent back.
Those who sell and rent back are guaranteed a quick sale on their home. Once the sale proceeds have paid off any mortgage that is remaining on the property, the money can be in the bank earning interest within days – generating a huge cash sum without any estate agents fees or removal costs and without the upheaval of having to move home.
Sell and rent back and the property valuation argument
An argument frequently offered against the sell-and-rent-back idea is that the sale price is usually less than the market value of a property. But as many people find out when they try to sell their home on the open market, estate agents frequently over-value properties and sales frequently go through for less than the asking price.
According to Hometrack, the property information group, the average property sale in England and Wales in May 2007 went through at 95.7 per cent of the original asking price. The figure was even worse in Wales, where sales went through at an average of 94 per cent of the asking price.
Avoid credit crunch problems with sell-and-rent-back
This is likely to have dropped further since then, as the effects of the "credit crunch" have become apparent. Mortgage lenders have reduced the amounts they will lend to borrowers, and demand has lessened as buyers become fearful of predictions of a house price crash in 2008.
The gloomy outlook for the housing market raises the spectre of "gazundering" – where a buyer reneges on their original offer and comes back with a lower one. This risk is avoided with a sell-and-rent-back deal.
Sell and rent back for a quick house sale
Those who sell on the open market also have to wait a long time for a sale to complete. Even once a buyer is found, it can take two to three months for a transaction to complete – longer if there is a "chain" involved. Extra mortgage payments need to be made, and the money that could be sitting in the vendor's bank account earning interest seems to take forever to arrive.
These problems are removed when you sell and rent back. Deals can be completed in weeks – sometimes days – rather than months, with a cash settlement following promptly on.
And if the prophets of housing market gloom are correct, avoiding a delay could save thousands of pounds if market valuations fall as far as is widely predicted.
Sell and rent back with sellandrentbackltd.co.uk
If you're caught in a financial house-trap, sellandrentbackltd.co.uk can throw you a life-line. Sellandrentbackltd.co.uk offers a sell and rent back scheme for those who like living where they are and want to maintain stability but are facing mortgage arrears, repossession, bankruptcy and debt or concerned financial meltdown is looming. The sell and rent back scheme is an alternative to selling up and moving, allowing you to stay put and find financial solutions. Sellandrentbackltd.co.uk will buy your home and allow you to continue living in it as a tenant. Find out more, call Sell and Rent Back Ltd. today on: 08000 255 870.