Sell and Rent Back Can Solve Some Divorce Issues
Sell and rent back, also known as sell to rent, is a practical way to use your largest asset to make life changes.
Homeowners approach the sell and rent back idea from a variety of routes.
For example, they might want to live debt free, pay off secured and unsecured debts; they might not be able to afford the mortgage anymore because of long term unemployment, illness or separation and divorce.
All these rather harrowing events can progress less stressfully and provide homeowners with a springboard to their new life.
In the case of couples who are separating or divorcing, being able to promptly sell the family home can remove a source of worry, leaving more time and energy to solving other related issues.
When a home is sold to a company specialising in sell and rent back, the process only needs take a matter of weeks.
A reputable company will be very clear about how much the property will be sold for and set an affordable rent for a guaranteed fixed period of at least five years.
It also means the couple can negotiate over who stays in the property.
The speed at which it is sold means couples with some equity will raise cash to be able to clear joint debts and arrange for the rental of a second property for the spouse who is moving out.
One household splitting into two often means extra furniture needs to be bought and the bills burden becomes slightly more.
Sell to rent can therefore simplify incomings and outgoings, enabling the individuals to draw up more accurate household budgets.
Couples who are splitting up sometimes end up having to live together until their property sells - which some may find untenable.
An added complication is the sluggish behaviour of the property market in some areas.
On the down side of sell to rent, homeowners are unlikely to achieve a purchase price for their house equal to its current market value.
This is partly because of the guarantees that come with the agreement - the quick sale, the guaranteed rental agreement, and the estimated costs for landlord insurance and maintenance of the property.
It's easy to begin the process of sell to rent back: contact a company which is fully regulated in accordance with the Financial Services Authority.
Householders are issued with application forms and terms and conditions; a Royal Institution of Chartered Surveyors member will value the property; following this, an offer will be made.
An FSA regulated sell to rent back company will then give the homeowners a two week cooling off period to decide whether they want to sell and rent back.
Homeowners approach the sell and rent back idea from a variety of routes.
For example, they might want to live debt free, pay off secured and unsecured debts; they might not be able to afford the mortgage anymore because of long term unemployment, illness or separation and divorce.
All these rather harrowing events can progress less stressfully and provide homeowners with a springboard to their new life.
In the case of couples who are separating or divorcing, being able to promptly sell the family home can remove a source of worry, leaving more time and energy to solving other related issues.
When a home is sold to a company specialising in sell and rent back, the process only needs take a matter of weeks.
A reputable company will be very clear about how much the property will be sold for and set an affordable rent for a guaranteed fixed period of at least five years.
It also means the couple can negotiate over who stays in the property.
The speed at which it is sold means couples with some equity will raise cash to be able to clear joint debts and arrange for the rental of a second property for the spouse who is moving out.
One household splitting into two often means extra furniture needs to be bought and the bills burden becomes slightly more.
Sell to rent can therefore simplify incomings and outgoings, enabling the individuals to draw up more accurate household budgets.
Couples who are splitting up sometimes end up having to live together until their property sells - which some may find untenable.
An added complication is the sluggish behaviour of the property market in some areas.
On the down side of sell to rent, homeowners are unlikely to achieve a purchase price for their house equal to its current market value.
This is partly because of the guarantees that come with the agreement - the quick sale, the guaranteed rental agreement, and the estimated costs for landlord insurance and maintenance of the property.
It's easy to begin the process of sell to rent back: contact a company which is fully regulated in accordance with the Financial Services Authority.
Householders are issued with application forms and terms and conditions; a Royal Institution of Chartered Surveyors member will value the property; following this, an offer will be made.
An FSA regulated sell to rent back company will then give the homeowners a two week cooling off period to decide whether they want to sell and rent back.
