Selling your parents' property? Way back when, you may have helped your
parents to buy their home. Perhaps it was a property they'd already lived in for thirty years or more. We know many people
helped their parents out under the Government's Right to Buy Scheme.
Or perhaps you decided
to help your parents move into a new property? Whether you bought
the property outright, chipped in or acted simply as a guarantor on the
mortgage, the fact is you paid out cash or picked up a long-term
But what happens when you need to sell
your parents' house and they're still living in it? And want to continue
living in it?
The problem is that over time, your circumstances change. Priorities
shift. You may be
moving abroad, need to buy another property yourself or simply need access to cash quickly or need to safeguard your
parents' security if your own financial position becomes uncertain.
Selling your parents' property,
particularly if they don't really want to move immediately, is
awkward. What do you do for the best?
Selling your parents' property due to
unforeseen events probably leaves you with three or four options.
- sell the property to a commercial
landlord on the open market
- sell the property to a "trusted"
- sell the property on the open market
and re-house your parents
- consider a sell and rent back
arrangement with a professional rent back specialist
Commercial landlords are a hard-nosed
bunch, and may not be able to provide your parents with any safeguards
year to year as to their length of tenure. But you may well be able
to achieve a better price for your property if you can sell on the open
Selling to a trusted third party such
as a family friend has its appeal, but there are many ifs and buts
involved when selling to a novice landlord. Never was the adage "blood is
thicker than water" more true than when there is a large amount of
You may be tempted to re-house your
parents. If you're selling your parents' property this is certainly a viable
option but perhaps your parents least preferred outcome. Perhaps you can
all agree that they will soon reach a stage in their life when their accommodation needs
may change. For example, it might be that you're all agreed that they
may be more comfortable in a smaller property or with single-level
accommodation. However there is usually huge demand for property like
this - there will be a queue.
What about a selling your parents'
property on a rent back basis? One that gives your parents the
automatic entitlement to renew the lease for the property for the
full duration of the agreement? We commit to renewing leases for the
full duration of the agreement as long as both parties fulfil their
obligations under the lease.
In an arrangement of this type, it's
not just the numbers that are important. We understand that your
primary concern is your parents' security. Selling your parents' property
to rent back can be the most practical
solution if your parents are likely to want to continue living in
the property for a fixed term.
There are also a number of advantages
to you. You can get access to the proceeds from the sale quickly.
There's no prospect of the sale falling through nor will you find your
sale stuck because of an issue with a property chain. But above all else
your parents will have a secure tenancy on a manageable rent for the
duration of the agreement.
To find out more about how it works call
0669. Or to make an initial
enquiry online or read more about renting back property use the link