Sell and Rent Back is becoming a more and more common way for people to get access to the equity built up in their property, or as a way for them to clear debts through releasing cash on sale but with the added benefit of not having to move home.
It seems a strange concept at first, but for some people it can really work out. They get to clear their debts, stay in their home and reduce their monthly outgoings. Some even end up with a decent amount of cash back too.
Take the example of a transaction we did with Ms C of Basildon. She was paying £850 on her £80,000 mortgage and was under pressure from her lenders for some payments she had missed. She also owed £10,000 in unsecured loans. On selling her property for £110,000, she rents the property back for £725 per month, saving £125 per month. She has paid off her mortgage and loans, and has £20,000 cash in the bank. Of course, and most importantly for her, she gets to stay in the home she loves for as long as she likes. All this in exchange for the loss of £20,000 equity in a home (it was worth £130,000) that she was unlikely to ever own.
Sell and rent back also works well for those wanting to release equity where traditional equity release schemes prove too costly (because of the low values offered and high fees charged) or too restrictive (most require people to be over 65 and attach many conditions).
For further details about sell and rent back and what it can do for you get in touch or visit www.fasterpropertysale.com.
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