Is sell-and-rent-back the right choice for you?

The question is do you want to sell your property under market value or at a discounted price, to a professional company that will profit from this transaction?

You often see companies advertising, that they have the ability to complete within 7 days if required by the client. Please make sure that they are a ‘cash funded company’ enabling them to do so. It is normal practice, for the company to pay or to contribute towards the legal costs. It is also worth bearing in mind that some of the professional sell-and-rent-back companies will be willing to assist you in the following: - stopping bailiffs attending the property, stop repossession, help to sort out your debts and assist you with any other financial problems. We believe that these types of helpful companies stand out from the rest and it shows by the resources at hand.

It’s a rare find, but you can find companies in the sale-and-rent-back sector that will exchange contracts more or less immediately i.e. within a day or two of initial contact, giving you all the security you require to move your life forward. You need to ask the question, can you exchange immediately? i.e. within a day or two. If there is any sign of hesitation, this should not be the company you should use, because again there are many small companies that drag there heals and simply waste your time and do not have the cash to purchase your property immediately. They tell you not to worry and all will be fine, but the fact is you have no security until you have exchanged contracts, so tell them you want to exchange straight away without any excuses.

It is always a difficult time to make a decision when you have, demanding letters being delivered and even more difficult for people fearing repossession because of mortgage arrears. We know it’s hard but, it is so important to keep a level head and to face the problem head on. It’s important to know all the options that are available to you and to be honest and realistic to yourself and the professional company you have decided to deal with. It’s much better if you stop ignoring the problem, because it will not go away, we always suggest that you put your hands in the air and communicate with direct your mortgage company, explaining your situation and what you are doing or intending to do about your situation. We understand that large organisations can, sometimes seem a bit cold, but if you have a professional organisation or a solicitor, dealing with this on your behalf, clearly highlighting your new position i.e. you have exchanged contracts on the sale of your home and they confirm the completion date, this takes away the pressure you are currently under.

Be careful, we have had many clients that have had to wait for what we call ‘unprofessional operators’ claiming that their organisation will pay between 85% - 90%, they had felt happy with this initial figure and had decided to proceed. Unfortunately they soon found out that they have had their time wasted and had been let down after spending approximately £400 - £600 on a survey fee, to then find out that the ‘unprofessional operator’ actually offers between 55% - 65%. We believe the two main reasons behind this is 1. To make a good profit out of the survey fee, approximately £150 - £250 profit (per survey) and also hoping you will become more desperate which puts you in position 2.Possibly desperate enough to accept a ridiculously low offer for your home.

We know that there are genuine professional organisations in the sell-and-rent-back business and we know that all of those companies are able to trade at a fair financial level that suits everybody, which is approximately 70% - 80% of realistic market value. If the company requests a contribution towards survey the maximum you should ever agree to pay is £250 for a valuation for a four bedroom house.

Please be aware that if the sell-and-rent-back company is paying for the survey, it is likely you will find that the property will be considerably under valued. Please remember if it is free, it is going to be expensive, because we all now we don’t get anything free in this world.

There are many companies in the sale-and-rent-back sector advertising discretion, saying that nobody needs to know there has been any change to their lives, it is a big benefit for family to stay together in their home with out the stress of moving and the children can continue to attending the same school or college.