Quick sale rent back -
understanding the offer.
Curious about how much you're likely to get offered for your property?
How much rent you can expect to be paying? Or are you expecting full market value or close for
It's important to understand how the numbers work so you
don't unwittingly throw the baby out with the bathwater. It's one thing to
recognise that a rent back arrangement might not fit your circumstances
after all. Quite another to miss an opportunity which could leave you
substantially better off either financially or in some other way.
Of all the pages on our site
covering quick sale to rent back schemes this is one of the most important. Reading it will stand you in good stead for finding the best solution
Why it's in your interest to
understand the offer
We've yet to meet a house seller doing
a quick sale rent back for the second time. This means potential
clients are on unfamiliar ground.
We take time to explain the logic
underpinning the quick sale then rent back arrangement. Effectively, how the
numbers work. In turn this helps clients understand the thinking that
goes into developing the proposal outlining the terms of the sale and
rent back offer.
By gaining some understanding you're in a
better position to judge what's possible and what isn't. We always aim
to reach terms which have a "felt fair" quality to them for both
parties. In our view this is the best basis for a long term
relationship with our clients.
Of course everyone wants the best price
they can get for their property. But what if this leaves you potentially
facing an unaffordable rent?
There's obviously a happy medium to be
found and that's what we aim to do when we structure our agreements.
The importance of
We aim to find the range of
price/rent combinations which offer you an affordable solution and allows us a
fair return. To do this we need to take into account the details of the agreement
such as how long you'd like to remain in the property.
Although your first question
might be how much will I get for a quick sale, our first
question is more likely to be what level of rent would you find
affordable? We also find out what you're trying to achieve by getting a
quick sale rent back. At the end of the day the figures for the quick
sale to rent back must deliver
what you want. Whether it's reducing your outgoings or paying off
debts or a mortgage or releasing equity.
How come? If you start out thinking you
can achieve a relatively high price and low rent you're in danger
of being disappointed. Likewise you need to be wary of offers that
too low with little explanation as to how they are arrived at.
What some clients don't initially
realise is that price and rent are intrinsically related. Let us
Price and rent -
two sides of the same coin..
Partly to counter the (let's face it)
pretty negative view of property companies but also because of the kind
of people we are, we like to run our business in a very open way.
This means we make time to explain how
things work. You'll know how the numbers are arrived at and what
influences any adjustments we can make to shift the price up or the rent
down and how they interact. That's the most important point to grasp
at the outset. Purchase price and rent are related.
Effectively you set or suggest the price when you
give us an indication of the level of rent you'd find affordable.
The general rule of thumb is that the
more we pay for your property as a percentage of open market value the higher our costs
therefore the higher the rent needed to at least breakeven.
Put another way. You (not us) determine
the purchase price of the property when confirming the level of rent
you'd find affordable.
Within reason, both parties can fine
tune the figures once we have your initial view on "affordability". At
the end of the day, we're not so different from you. The terms we can
offer for a quick sale then rent back arrangement are also governed by
Find out more about
quick sale rent back arrangements