should consider selling and renting back to release equity? In broad
terms sell and renting back is attractive to:
- Homeowners looking for a more
flexible option than traditional equity release products.
- Homeowners who don't fit the criteria
for equity release products.
- People facing some form of financial
Selling and renting back to release equity
is particularly well suited to the under 50s who are unlikely to qualify
for a traditional equity release scheme. Selling and renting back means you can
have the security of staying in your home. This can be very attractive
to families with young children or older people who are very established
in an area or have relatives close-by.
If you'd like a break from
homeownership - perhaps with a view to being a cash buyer next time
round - selling and renting back to release equity can be the answer. If your aim is to find another house to buy perhaps because
you are downsizing this may well suit you. And possibly with no future
Selling and renting back to
release equity is a more flexible option if you simply have other uses for your
capital. This could range from paying off loans to simply wanting to
enjoy your money or for investment purposes. It's not unusual for people
setting up a business to use the equity in their homes to do so.
You want to release equity to
fund your retirement. Perhaps you approached the banks to be were
turned down? Perhaps you're looking for something simpler or are unable
or reluctant to move? Either way,
selling and renting back to release equity for retirement is worth
considering if you'd like a larger cash sum to start with.
If you are facing repossession
or clearing debts and want a fresh start, selling and renting back to release equity allows
you to maintain a clear credit record, preserving your credit rating and get
your lender off your back.
Are finding it difficult to cope with
higher interest rates and want to release equity to clear their mortgage. Particularly if you'd like
the opportunity to buy your property back in the future when interest
rates start to go down. In a way, this is a means to protecting the
profits you have already made on your property. It also means that your
house can ultimately stay in the family. Not all professional property
buyers will allow you to add a buy-back option to your sell and rent
Wish to release equity in such a way that
you have substantial capital left-over to leave to other family members.
Your bottom line is that you care about the bottom line and simply want
a better value product. Conventional equity release schemes rarely offer
you more than 50% of the value of your home. Selling and renting back
can offer you as much as 90% depending on your choice of supplier and
With the conventional equity release
services offered by financial services companies you may be left with
Which? calculated that if a 60-year-old borrowed £80,000 on an
average Lifetime Mortgage it could end up costing £256,570 by the time
they were 80 and £343,350 by the time they were 85.
Ready to find out more about selling
and renting back to release equity?