Sell Your House For Cash And Rent It Back

Secure A Quick Property Sale And Escape Financial Difficulties

Sep 27, 2008
Asa Ghaffar

: Stop Repossession - Kevin Rosseel

It seems impossible to find a house buyer and time is running out. Finding a property cash buyer would secure a quick house sale, but how is this possible?

Falling property prices are indicative of an economic downturn. The longer a house is held for, the less it is likely to be worth. It is possible to arrange a sell and rent back to a property cash buyer to get that all important quick house sale.

What is A Sell And Rent Back?

It is a private house sale. A seller is offered up to 80% of market value home to secure a quick house sale. This can prevent repossession and it is then possible to rent the property from the buyer at a more affordable monthly rate.

Is 80% Of Market Value A fair Deal?

Many estate agents over-value properties meaning that it is unlikely to sell for that price on the open market.
Avoid estate agent fees of between 1.5% and 3.5% by finding a property cash buyer.
There are no solicitors or survey fees as these are paid for by the cash buyer.
If it does take many months to sell in the current market, the price could fall substantially.
If a repossession order means that the owner stands to be removed by bailiffs next week a sell and rent back is a vastly better option.
Nobody will know that there has been a quick house sale as there will be no boards outside.

Stop Repossession From Taking Place

If struggling to privately sell a house it is possible to stop repossession by finding a property cash buyer. A sell and rent back will stop a repossession order in it's tracks. No court will allow a family to lose a home when there is an alternative.

Potential Pitfalls Of A Sell And Rent Back

Only receiving 80% of market value can be a problem for some. As they are a property cash buyer they will be paying a sum below market rate. A minimum of 25% equity must be available.
Look for the more established companies with better reputations, preferably those looking to establish a long term rental relationship with clients.
Be wary of 6 or 12 month assured shorthold tenancy agreements.
Market regulation is sparse, although this will change very shortly.

How The Process Works

A surveyor will come round to assess the home and provide a valuation for the property cash buyer. There isn't usually a charge for doing this.
Based on the valuation, an offer will be made based upon selling a home to them. Normally a rental package will also be agreed at this stage based on affordability.
If accepted, a solicitor will deal with all the paperwork and finalise everything.
Once the survey and searches have been received, an exchange date will be arranged.
Complete and sign the tenancy agreement.

Although most people that use this approach are trying to stop repossession and escape financial difficulties, it can be used to simply secure a quick house sale so a new home can be purchased. This is likely if someone has been trying to sell their home for a long time.