Sell your house and rent it back tips

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Sell your house and rent it back tips

If you want to sell your house and rent it back there are several things you need to know.

Sell and rent back companies are regulated by the Financial Conduct Authority (FCA). The FCA checks whether firms stick to all the rules and makes sure they meet certain standards. It also means that there is a complaints procedure you can go through if things go wrong.

Here are some rules that sell and rent back firms must follow:

  • Sell your house and rent it back companies aren’t allowed to drop promotional leaflets through your letterbox.
  • Sell your house and rent it back companies must check you can afford to enter into an agreement with them and how that might affect your entitlement to benefits
  • Sell your house and rent it back companies must give you a fixed term tenancy of at least five years
  • Sell your house and rent it back companies must arrange for an independent valuation of your home if you haven’t already got one
  • Sell your house and rent it back companies must give you a cooling-off period of 14 days to give you more time to decide what to do.

If you are thinking of signing a sell your house and rent it back company, you should check that they are listed on the Financial Services Register. You can check the register on the FCA’s website: www.fca.org.uk.

Potential problems with sell your house and rent it back schemes:

  • You may be offered less money than if you were selling your house on an open market.
  • You may have little security of tenure after the initial fixed term of tenancy, that you agreed on sale, comes to an end you will be vulnerable to eviction, as your new landlord will have the right to terminate your tenancy at the end of the fixed term (usually for five years).
  • Your rent may equate to the same amount as your current mortgage payments.
  • Your landlord may increase your rent, which can result in you accruing arrears even after the sale.

We don’t mean to scare you by outlining these risks. However, these are things you need to consider if you want to sell your house and rent it back.

Sell your house and rent it back companies have to be clear from the outset about risks that you may face. This is so that you can make an informed decision about what is right for you.

Selling your property can be stress, and it can be even more stressful if you are selling your property as a last resort. The decision to sell your house and rent it back is usually made because the seller needs to sell their home, but would rather they continue living in the property. Sellers who are in this situation needs to be treated sensitively and have their options clearly outlined for them. However, in the end, it is up to the seller to decide if a sell your house and rent it back solution is right for them.

 

 

 

 

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