Summary:
Selling your home to a housebuyer and renting it back from him may be an option worth considering if you´re financially strapped and need to sell your home. Find out all you need to know with this informative article. Aimed at the UK housing market.

Details or Sample:
Sell To Rent Back: Learn The Basics Before You Decide!

How Does Sell to Rent Back Work?

Some house buyers offer a scheme whereby once they buy your property, they will rent it back to you as a tenant. This is certainly an option for any homeowner needing to sell for financial reasons but doesn’t really want to move home.

Generally, most house buyers will be more than happy to rent your property back to you, as it can be beneficial to both parties. The house buyer doesn’t need to spend time and money looking for a new tenant and you can remain living in your home. Tenants who are renting back their homes tend to be long term lets and usually take good care of the property, again suiting the house buyer.

These are only some of the advantages of selling to rent back. However, it’s important to look into it properly as there are a few drawbacks too and it may not be suitable for everyone.

Should I sell my home and rent it back?

Selling your home on the open market will always get you a better price than selling to a house buyer. On average, you will receive around 75-85% of the market value from a house buyer, so you should take this into account before making a decision, as it represents quite a large drop in cash. Take some time to consider whether this is financially viable for you and don’t rush into accepting an offer.

Remember too that once you sell to a house buyer you won’t see any benefit if the market value of the home increases. Generally, property is an excellent long-term investment so you should really only consider selling to rent back if you have no other options open.

The people best suited to a rent back scheme are those experiencing severe financial problems. If the house buyer gives you a high enough offer for your property so that you can clear your mortgage and any other secured loans, it should be possible to pay off any further debts you may have and remain in your home.

Will rent be expensive?

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