Renting back your home after selling is still a new concept and has only been feasible for the last five years.
So what does it mean exactly? It means is a landlord sets up an contract which will allow a the owner of a property to sell their home at a reduced sum to the investor or company, and then rent it back for less.
Unless you have been hiding in a cave, you would have noticed that the housing market, though still slow, may actually be picking up. Some areas could be slowing down more.Just a small prediction into the housing market.
However there are some signs that things are becoming calm. The demand for inner city flats may be slow, but it could prove to be an opportunity to sell these to those who are searching for good deals.
One of the problems with this scheme, is that homes can be slightly undervalued depending on the speed of the process.
An example is a valuer may give you a valuation based on tomorrow’s selling price, or the selling price could change depending on the market at the time of renting your home back.
An another option to sell and rent back, is buy-back which some companies could also offer. This means the chance still remains allowing home owners to keep their right to buy their property back when their circumstances alters. It might be a good option to raise money needed for pay off loans or even re-possession proceedings.
Details can be made to suit and individual’s circumstances like this, and the agreement can be short or long-term lease (with the option of buy-back). The rental rates should be at market prices, while the option of buy-back should be pre-agreed in terms of value.
