Sell and Rent Back - Equity Road a Dead End
A sell and rent back scheme may be the only avenue left open to homeowners turned down for requests to release equity or refused a remortgage package. And the news is full of reports on the current mortgage squeeze. For the past decade or so, the UK has been indulging in what has been dubbed 'property porn' as we couldn't get enough of TV shows and magazines extolling the virtues of location, location, location. And with that came the idea that property offered most investors a personal mountain of cash as equity accumulated. But, especially for those homeowners who bought their properties in the last year or two years, that equity is going nowhere as property prices fall. A sell and rent back scheme could be the only way to stop house repossession.
Sell and rent back - refused equity
The simple truth is if you haven't owned your property for a long period of time, it's unlikely to have accumulated any equity. Additionally, if you over borrowed or took out a mortgage over three times your salary, with little or no real deposit, you could even be looking at the risk of negative equity. A sell and rent back scheme rather than the dream of remortgaging to release funds for a holiday, to pay off debts, or buy a new kitchen, is a door that's been firmly shut thanks to the American import: the sub-prime mortgage crisis.
Turned down by your lender? Sell and rent back
You may have been relying on your property to release cash to help you survive high interest rates, high taxes and the increased cost of living, from utility bills to supermarket shops. But the chances are you've been turned down by your lender for a remortgage. The shocking statistic that suggests property in the UK was overvalued by as much as 30% shows how drastic the collapse will be for some homeowners. Those without equity, or who have only just got on the ladder, are at risk of falling into deep, unmanageable debt. A sell and rent back scheme could be the only way of ensuring those financially vulnerable escape high mortgage repayments, allowing the homeowner to stay in their home and rent it back.
The sell and rent back solution
Approvals for new mortgages are down by 40% compared to last year, and property prices have fallen consistently for five months in a row, according to the leading lender Nationwide. Some homeowners then are expected to be victims to repossession. It's unfair, but those more vulnerable are those who have just got on the property ladder and who haven't reaped the benefits of easy credit, high property prices and the low cost of lending. Anyone not classed as 'ultra-safe' by banks and lenders will find it difficult to find a remortgage or loan. The result is more homeowners will be looking into alternative way outs, such as the sell and rent back solution.
Choose a sell house fast scheme with Harwood Home Buyers
Harwood Home Buyers specialise in buying property for cash and if required, they can exchange and complete within 7 days. Harwood Home Buyers work to your time scale and try to offer the best possible price for the property. Their philosophy is that every situation is different and requires a tailored solution. For a fast house sale, call 020 7371 5723 and speak to a dedicated, friendly adviser.
