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 leaseback

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:

Get 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 circumstances.

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 beyond?

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 form below.