Selling and renting back inherited property? Coping with the
aftermath of a loss in the family, perhaps of a spouse, is a life-changing
event. If you've recently suffered a bereavement we're sorry you find
yourself here. Understandably, you may be pre-occupied with family
matters. One of these may involve your home.
If you find yourself on your own, or with
a reduced income, you may be wondering whether you can continue to afford the upkeep
and expense of running your home.
Selling and renting back inherited
property is simply one alternative for coping with what life throws at
What if there is no means in place to
pay-off the mortgage? Or if you realise you have other uses for the
capital tied up in your property? Selling and renting back inherited
property can address these issues. It's one option that can allow you to remain in your home
long term on affordable terms and free up capital in the process.
But it's not the only alternative.
Some people feel they need a fresh
start. They elect to downsize, selling up and moving to a smaller
property. Others, perhaps you, simply don't want to move.
One other option that might be open to you is some form of equity release. But not everyone qualifies or gets the
terms they feel they need under these schemes. It doesn't suit
everyone. Selling and renting back is a bit like that too. It's doesn't
always produce the terms you'd like. Just like equity release it depends
on your circumstances and expectations.
Selling and renting back
Here's a brief run-down of how selling
and renting back works. We'll assume the property in
question is your current home.
The basic idea is that a third party
will buy the property and rent it back to you on pre-agreed terms. When you sell a property on the open market it's expected that you'll move out. That's the norm.
Deciding to sell an inherited property to rent it back allows you to sell your home and
continue living in it, paying rent, after the sale concludes. It can be
a beneficial option for people whose circumstances change dramatically.
At the end of the day you may
still decide to sell up. But at least if you find out a
bit more about all your options you're in the best possible position to
make the right decision for you.
More on how these
So what else does selling and renting back
inherited property involve? If
you prefer, you can think of it as another way to release equity.
The price and rent are calculated in a way which takes the circumstances
surrounding the sale and rent back into account. This will include how long you'd like the use
of the property, how much you can afford to pay in rent and the
type of property itself.
However there are
downsides. You won't achieve the full asking price for the
property - what it would have sold for on the open market nor is the
agreement likely to be "forever". And more often than not
there will be a mortgage on the property which does introduce an element
Other issues you ought to be aware
of concern security and length of tenancy. You should be asked early on
about the minimum length of agreement you're
looking for. This is one of the most important pieces of information
the rent back specialist requires to create an agreement for you.
Selling and renting back inherited
property may have important advantages for you. Top of the list is
likely to be that you can remain in your property for the foreseeable
future on an affordable basis. If you have lived in the property for
many years, have a strong emotional attachment to it and the surrounding
area, you may readily see the benefits.
To find out more about selling and
renting back inherited property call
0669. To make an initial
enquiry online or use the form below. To simply read more about renting back property use the link