Sale and leaseback your house -
is growing in popularity due in part to the current financial climate. Canny homeowners
are realising that if you find a company committed to holding property
long term - everybody wins as long as the terms agreed are fair to both
parties. Put another way. It can be much easier to use someone
else's money to keep your home.
Also known as "sell and rentback"
leaseback is used more or less inter-changeably (particularly in
Scotland), and more generally, also seems to be the preferred
term of media pundits.
The rising popularity of sale and
The growing popularity of
leasing back your home is directly due not just to "money worries" as is commonly
portrayed in the press, but a whole range of situations ranging from speeding up
divorce property settlements to releasing equity.
The sale and leaseback
of your home caters for a significant minority of homeowners who are unable or
reluctant to refinance their properties, can't or prefer not to seek out
an equity release provider and want to remain in their home.
Of course the current credit crunch is
having an impact as some homeowners who would have preferred to
refinance or move are now unable to. We find that our clients are simply
doing their level best to find alternative ways of shuffling the cards
that life has dealt them. Life doesn't always pan-out as you'd planned.
Sale and leaseback your house
Sale and leaseback allows you to:
access to the equity that's built up in your property before
house values fall further. Opting for the sale and leaseback your house
route means you won't get the full value of your property. But you
won't have increased your level of debt and in most cases your outgoings
will fall. In fact, if your outgoings don't fall, it might be that your
property or circumstances aren't suited to leasing back. It happens.
Reducing outgoings can be priority number
one for homeowners dealing with significant amounts of debt or trying to
cope with prohibitively high interest rates. If you're struggling with
debt the sale and leaseback of your house
can reduce your outgoings by 50% - but it does depend on your individual
Sale and leaseback your house can help raise cash
for other things. Got other uses for your money? Who
hasn't? From funding a second home abroad to giving cash to your
children to raising cash for a business venture. Before the credit
crunch you may have re-mortgaged to raise additional funds but
particularly for older homeowners this was never going to be the best
option. Who wants to be paying a mortgage into their late 60's and
Which brings us nicely onto paying off
your mortgage or debts with the sale and leaseback of your house. If
you've got an interest only mortgage and no means to pay it off then you
will have to sell your house at some point. Selling when house prices
are falling is not ideal - but they are widely predicted to fall
further. Hedging your bets on prices stabilising quickly is a risky
strategy. Truthfully no one has the answers to this one.
Sale and leaseback your house helps when
you're not staying together by significantly speeding up your amicable
divorce property settlement or separation. If you're squirming at
the thought of financing the purchase of two properties allowing one
party to remain long term in the family home using
a leaseback can be of a significant help to all concerned.
Sale and leaseback your house is a major
decision. There IS much to
consider and many questions to address. But you're never under any pressure from us... To make an initial enquiry please call
0800 043 0669
or submit the