If you’re eager to beat the debt threat, a sell and rent back scheme could add up.
If the property market in America is trying to tell us something, the key message would be this – that the biggest threat to the UK property market today is debt. As more homeowners look into sell and rent back schemes as alternatives to crippling debt or even house repossession, the problem of debt is not going to just go away.
The burden of debt
It was the irresponsible lending to those on low incomes or with bad credit that brought the US property market to its knees, with over a million homes facing repossession. The sell and rent back schemes in the UK are increasingly popular as credit card lenders and mortgage lenders are both slashing their lending to exclude risky customers. Many fear the UK is not far behind America as the UK personal debt mountain now reaches £1.3 trillion. The scale of debt has doubled in five years.
Sell and Rent Back
Previously, home ownership was like owning a golden key – allowing people to access cash accumulated from the easy profits of inflated property prices. But sell and rent back schemes are increasingly likely now homes simply aren't delivering top dollar. When you look at the figures, it shows that houses are not the financial jack pot they once were, even though many Brits still hold onto the idea that home ownership is the Holy Grail. A sell and rent back scheme may make more financial sense when you consider:
• The average cost of a UK property was £30,898 in 1983
• This average ballooned to £198,500 in 2007 – a 642% rise
So if you purchased a house in 1983 with a 10% deposit you would have to borrow £27,800 over 25 years. These properties are now worth over seven times more – which means massive profits for those homeowners. But for the same thing to happen for homeowners who bought in the last five years, properties would have to be worth £1,275,000 in 2031. But property inflation can't continue at such a high rate outstripping wages. Many see the current housing slump as a much needed correction to the market. So a sell and rent back scheme may make more financial sense when you look at the long term prospects.
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.