Rent back schemes could soar as repossessions hit a 15 year high
Rent back schemes offer home owners facing the risk of repossession an alternative option. Repossession can be a traumatic, humiliating experience, leaving you feeling powerless with an uncertain future. For some home owners who don't want to put themselves or their families through repossession a rent back scheme is an attractive alternative. Rent back schemes involve dedicated property companies that specialise in buying at risk homes. The property rescue companies offer home owners a fast house sale, with an offer that's usually around 75-85% of the market value of the property. The home owner is then offered a rent back option, allowing them to stay in their homes as legal tenants at a fair, agreed monthly rent.
Rent Back Lifelines
And rent back schemes could become lifelines for a growing number of households as the news that home repossessions are at a 15-year high. The number of mortgage repossession orders rose by 24% compared to the same period last year. Repossessions between April and June clocked up at 28,658. Rent back schemes have become more prominent in the press as a result of the increased demand. The rise in house repossessions is equitable to the number of orders made in the 1992 recession. The figures speak louder than any speculation that the UK's struggle with the credit crunch could get worse; many believe a difficult recession lies ahead, with things getting worse before they get better.
Rent Back Schemes set to Rocket
Rent back schemes could rocket as a result, as more home owners are unable to find buyers in a stagnating mortgage market. The ideal situation is to sell a property quickly on the open market at the best price, but as estate agents close across the country, it's never been harder to sell a property in the UK. Buyers are avoiding the housing market until prices bottom out further. And those who want to buy simply can't get a competitive mortgage. As a result, more home owners simply have no choice but to turn to a fast house sale company and either sell at a reduced price and move, or opt for the rent back schemes.
Rent Back as Repossessions Rise
Rent back schemes are set to become a fixture of 2008 and 2009 as the Council of Mortgage Lenders reported a 48% rise in repossessions in the first six months of 2008. They estimate that repossessions will rise to 45,000 by the end of the year – a huge number of families will be affected. Rent back schemes and renting as an alternative to buying will be a huge trend in the coming months as one in six people who own their own home will face negative equity, with an estimated 70,000 with higher debts than the value of their homes.
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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