Why Would a Homeowner Sell and Rent Back Their Home?
October 3, 2009 by Admin
Filed under Stop Foreclosure Now, Stop Foreclsoure General
Realistically, we would sell our house when we were ready to move on, obtaining the best possible price through the open market and arranging the purchase of a new home in the meantime. This would give us the time to adjust to our changing circumstances and plan thoroughly for our futures. Life, however, does not always play out quite so smoothly, and when unforeseen circumstances arise, we need other options.
The amount of equity that we hold in our homes is probably the greatest ever cash resource that we will ever have access to, and yet, whilst the financial markets are awash with equity release schemes, many existing homeowners are not eligible to apply for them. Even if they were, it would take so long to make the ideal arrangements that it would not be worth proceeding.
Our sell to rent back scheme not only represents a fast alternative to other equity release schemes, but it also allows you to continue living in your home for as long as you wish, during which time you have the opportunity to make alternative living arrangements, save for your future or re-establish your credit rating. Whilst other schemes might free up your cash quickly, they still leave you with all of the inconvenience, upset and immediate expense associated with finding another home and moving house. The sell and rent back scheme, on the other hand, allows you to receive a cash lump sum for your property, to do with as you please, whilst remaining in your home as a tenant and paying rent at the equivalent value for similar properties in your area.
The sell to rent back option is one which has proven to be a very effective solution in a variety of different circumstances, not all of which stem from financial circumstances. The scheme also helps those wanting to simply improve their quality of life. Why would a homeowner then consider sell rent back?
- To enable the repayment of debt or mortgage arrears
- To prevent a repossession
- To help during a period of unemployment
- To allow effective planning for emigration
- To allow one partner to remain in the family home in the case of divorce
- To release funds to compensate for the devaluation of pensions
- To release funds to pay for major expenses such as sending a child to university or unexpected medical bills
- To release funds to enable a better quality of life in old age
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