Rent back schemes may be the easier option for home owners unable to find a buyer
Rent back schemes offer some home owners an ideal solution to their housing horrors. For property owners wrapped up in expensive mortgage packages – especially if their fixed rates are ending in exchange for more expensive variable rates - a rent back scheme might make more financial sense in the short term. Rent back schemes do exactly that – buy your home and allow you to rent it back as a legal tenant, so you receive a lump sum of cash (depending on your equity and value of your property), with the added bonus of avoiding the expense of moving. Rent back schemes allow you to rent your home while the credit crunch continues to worsen. News reports suggest some people are renting their homes and moving abroad until the economy brightens up in the UK, but this is a position of luxury for many home owners. Most people trapped in an expensive mortgage don't have the financial freedom to move abroad for a year or two, or simply can't risk their jobs in the UK. And not everyone believes a life abroad is a better life – rent back schemes appeal to those home owners who love where they live, enjoy their neighbours, want to be close to family or keep their children in their local schools. Financial necessity usually demands downsizing or worse case scenario, repossession – but a rent back scheme offers an alternative route.
Rent Back – Buyers Back Out
The news that house builders Persimmon have announced a sharp fall in profits from ?281.1m in 2007 to just ?36.9m in 2008 is a stark illustration of the housing crisis. Buyers are not in a position to act, either because they've been turned down for a mortgage or remortgage by increasingly wary banks; or they want to hold off buying until the economy forecast is more forgiving. Either way, it spells bad news for the current home owners desperate to sell their property to stave off spiralling debts, to escape an unaffordable mortgage, to downsize to meet the rising cost of living, or who have to move because of practical or emotional circumstances, such as redundancy or divorce.
Rent Back Schemes offer Lifeline
Sales of property through Persimmon are down more than 30%, and the company cut 2,000 jobs in 2008. But despite the difficulties, financial experts say they performed well considering the economic context. For those home owners who need to sell, the news illustrates just why buyers are so difficult to come by. For those who can't afford to wait for a buyer to come along on the open market, rent back schemes offer a lifeline.
Looking for a Sell House, Rent Back Scheme? Speak to Property Rescue
If you need help to get a sell rent back scheme for your property, contact us at Property Rescue. We’re committed to helping you, whatever your circumstances. Property Rescue has helped hundreds of homeowners, rescuing them from desperate situations. With Property Rescue you can rent back with confidence.
Call freephone 0800 1313 999 for help today.
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