Rent Back or Buy Back
Sell and Rent Back Option
After selling the house, you do not have to move out if you do not want to. You can rent the house back and stay there as long as you
like.
That way you do not have to take on the extra stress of finding a new place, moving your belongings, finding new school for children, new
neighbours and so on.
We will give you 2 options on how much rent you can afford to pay without overstretching unnecessarily.
We will fix that rent initially. That way your outgoings will be lesser than before (After all what is the point of selling the house if
it does not make your life any easier).
Sell and Buy Back Option
All our clients have their own personal reasons to sell their house quickly - many do this because they are in some sort of financial
hardship.
Many of them eventually put the hardships behind them, as if this were a bad dream, with their hard work and determination! When they are back
in a position to buy a house again, they often do so without delay.
But there is often one problem - property prices would have gone up by then. For example, house prices in most parts of UK have doubled in the
last few years. Experts say that these prices will continue to rise in future. That puts our clients into a disadvantage. How can they 'ever' buy
a house again?
Except that we came up with a solution!
When you sell the house to us then we will give you an option - you can have the choice of buying the same house back from us
anytime in the next 2 to 5 years time at Today's price (or Lower) - at No Risk to You.
Let me repeat this again (in case you missed it):
If you sell the house to us today then you can have the option to buy it back in the next 2 to 5 years at
Today's Price (or Lower) - at absolutely No Risk to You!
So what does this mean? It is simple:
- If property prices go up then you win. Because you are buying the house back at today's price. That way you get instant
built-in equity from day one.
- If house prices drop (which is highly unlikely, according to property experts), then you can just walk away and buy a cheaper house
elsewhere. So there is no risk to you.
In other words, you get the right to buy the house back (at a pre-determined price). However you are under no obligation to do
so. Simply put, if you wish to buy back then we much honour your wish. But you do not want to exercise your right then it is entirely up to
you.
This is an unheard of deal. So we must be mad, right?
May be! But this certainly is a win-win situation for you where you simply can not loose, even if there are
some conditions attached to it.
To Submit Your Property, Click Here and some one will get in touch with you
soon.
Buy Back: More Details
If we buy your house at a certain percentage below its true market value then we will offer you to buy the house back at a similar discount.
For you this could mean that:
- You have locked in the future price of your property. That way you have the equity from day one.
- If property prices continue to go up then the level of your equity will increase even more.
- If you can add value to the property (e.g. decorating, fixing things etc) then you can force-appreciate the value, and equity, even
more.
- You continue to live in the same house. That way there is no looking for a new house to rent or buy, changing schools for children,
moving into a new area and so on. Even your relatives or neighbours need not be any wiser of any change in your
circumstances.
However there are some conditions. They are:
- You must rent the property back till you buy it back.
- No late or missed rents are allowed. You must pay the rent on time every month.
What is in it for us?
As a business we will expect a reasonable profit from this transaction. It is generally a small percentage. But the main thing is: you
are able to buy the property with built in equity from day one (which may even increase over time). So it is a win-win situation for every
one.
Buy Back Example:*
Let us suppose that your property is worth £150,000. You want to sell the property to us and then buy back in 5 years (or
earlier). Let us also imagine that the property prices go up by 5% every year during the next 5 years.
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Today
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- We buy the property at 80% of its real market value (i.e. £120,000)
- You rent back this property for the next 5 years
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5 Years Later
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- Property prices have risen at 5% per annum. Market value of the property
is now £182,000.
- You can buy the property back at 20% discount of this price (i.e. £145,000).
- Net Result: You may be able to buy the property back without even needing a deposit
because there is enough built in equity in property.*
In theory, you loose some equity when you sell the property to us. However when you buy the
property back, you get £37,000 in equity - which is more than what you lost to start with.
However if property prices crash then you are not obliged to buy back this house at all.
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*Disclaimer: This should not be treated as advise or recommendation, simply because we have
no knowledge of your personal or financial circumstances. Please take appropriate professional advise where
necessary. We are not licensed to advise on financial or mortgage matters.
Next: A Worked Example
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