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Selling family property to rent it back

selling family property to rent it back

Selling family property to rent it back? Do you own more than one family property? Are you under pressure to sell a family property you'd rather hang on to? Perhaps it's important who you sell to or you want to sell but only with specific conditions attached? When property prices could be counted on to rise year after year some families acquired property on behalf of relatives. Others simply didn't sell their residence when they moved to their next home.

selling family property to rent it back

The net result is that many homeowners now own more than one property. Parents rent to their children or children rent to their parents. Some don't charge any rent at all.

But priorities change.

If you own more than one family property there may come a point when you'd prefer to free up some cash or need to pay off a mortgage. If you'd prefer to sell your property but let your relatives remain, we may be able to help. Selling family property to rent it back allows you to sell to get your cash, but just as importantly your family can continue to have the use of the property.

selling family property to rent it back

It is possible to sell a family property and rent it back from a reputable sell and rent back provider. You free up your cash and your family gets the use of the property for the lifetime of the agreement.

There are many reasons why you may prefer to sell now. Perhaps you're intending to move home yourself and need to consolidate your cash to finance the move. Or perhaps you're simply coming to the end of the mortgage term. Or have reached a stage in your life where you want to do other things with the equity tied up in the property. Selling family property to rent it back, might be the compromise that lets all parties move on with their lives.

selling family property to rent it back

Whatever the reason, selling a family property to rent it back isn't like an ordinary house sale. Usually properties are sold on the open market (through estate agents or possibly solicitors in Scotland) for the highest price achievable.

Selling family property to rent it back assumes the property is not being sold with vacant possession - someone is remaining in the property and that precludes selling on the open market.  These conditions mean you need to sell to a "safe pair of hands" who'll take on the commitment to keep someone in place for the lifetime of the agreement - usually long term.

selling family property to rent it back

Selling family property to rent it back - how it works

Selling a family property to rent it back is based on the premise that the person (or company) buying the property takes on a commitment which allows you or a family member to remain in the property as a tenant.

From your perspective the two major drawbacks of selling a family property to rent it back are likely to be that you will not receive the full market value for the property and that the arrangement is likely to be (but not always) for a fixed period of time.

Other useful things to know about selling a family property to rent it back? The key point to realise is that the purchase price and prospective rent are linked to some degree. Put another way, the higher the price, the higher the buyer's costs going forward. Logically the higher the price the more rent is required to cover the costs.

Moreover by not paying the open market value of the property the buyer is able to retain the property long - term - there is no pressure to re-sell.

selling family property to rent it back

Selling family property to rent it back will only work if terms can be agreed that suit both parties. In most cases we find there are a number of price/rent combinations that can be offered. You just have to find the combination that works for you. The majority of clients tend to opt for the price which delivers the lowest rent.

Other benefits and safeguards

Other benefits which can be built into an arrangement for selling family property to rent back include allowing family members to buy the property back in the future on favourable terms ie at a discount to the market value at the time of sale. It is also possible to incorporate a no quibble "cooling off" period such that the arrangement is completely reversible without penalty during the first year or two, depending on the length of the agreement.

To find out more about how selling a family property to rent it back works call us on 0800 043 0669 or submit the form below.

I am thinking of selling and renting back - tell me more
Please note that all fields followed by an asterisk must be filled in.
First Name*
Last Name*
E-mail Address*
Street Address*
City*
Zip/Postal Code*
Most convenient contact number(s)?*
Best time to call?*
What is the estimated value of your property?*
What is the nature of your sell and rent back enquiry?*
A Short-term rental
B Long-term rental
C Buy-back
D Unsure - send an information pack
Is your property ex-local authority?*
Yes
No
How quickly do you need to sell?*
Urgently - less than a month
Less than two months
Less than three months
Don't know
Reason for selling?*
Please add anything else you think helpful
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