The Truth About Sell and Rent Back Part 2

The small element of sell and rent back companies that do decide to evict tenants without notice are the same companies that tend to be reported on in the press. One of the advantages of a sell and rent back company is discretion.

As a result, it is rare to find anyone who is willing to broadcast their situation and give a different account of their experiences. But the companies that do treat their clients badly are as a result of the de-regulated system and the sell and rent back sector will only profit from some form of regulation.

Make no bones about it, changing form a homeowner to a tenant is an incredibly difficult decision. Especially given the prevailing cultural preference toward owning ones home in the UK. Reports of dodgy companies evicting their clients and limited tenancy agreements do little to assuage peoples trepidation. What should be understood however, is that the limited tenancy agreement is as a result of the mortgage lenders and not the sell and rent back companies themselves.

In reality, it would be more beneficial for the company to tie the client to a longer term lease and negate the need for new tenants. The company would also have the added incentive of tenants who are unlikely to let the house fall into disrepair.

Companies that do serve notice on their tenants after a period of months tend to be ‘fly by night’ and are just looking for a quick profit so quickly disappear. It is important to research the company that you are considering working with, to ensure that they are a dedicated sale and rent business.

There is no getting around the fact that if you decide to use a sell and rent back company, you will be selling your property for BMV or below market value. The rate can fluctuate but the general rule of thumb is a minimum of 80% below market value. The initial loss is considerable but there are mitigating circumstance to consider.

For example, if you end up in the position whereby a repossession order is completed on your house, it will be impossible to remove that black mark from your credit history. A poor credit history prohibits you from obtaining reasonable rates on any future mortgage…(cont)

The Truth About Sell and Rent Back Part 1

The Truth About Sell and Rent Back Part 3

Get My Name Down Article Site: http://getmynamedown.com

For more information from Property Rescue about Sell and Rent Back visit the website - www.propertyrescue.co.uk

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