Sell and Rent Back - Surviving Economic Gloom
If you're already feeling the squeeze financially, you might want to consider what your financial options are. Homeowners in the UK are facing a difficult time. Those who bought property recently are most at risk as they are more likely to have over-borrowed and bought their homes at up to 30% over the real value of the property. The lust for location, location, location style programmes and drive to get onto the property ladder has resulted in many people shelling out more on over-inflated property prices. And for those, a sell and rent back scheme could be the only way of sailing through the financial storms ahead.
Sell and rent back - Can't afford to stay
According to a recent report on the BBC website, the Treasury could be facing a 'major challenge' as the UK faces an economic slowdown. More people are in debt, and fewer are saving or putting away for a pension. And the Chancellor Alistair Darling has said economic growth this year and next could be slower than the government had first thought. A sell and rent back scheme could be a short-term solution to homeowners who don't want to move but simply can't afford to stay.
Vulnerable households sell and rent back
Those households that are vulnerable are the ones who are juggling debt, or who have taken out high mortgages in recent years. A sell and rent back scheme could be more viable for those who are already feeling the impact on their finances. The abolition of the 10 pence starting rate of income tax has been criticised for adding further pressures on low income households. In the past, the strong housing market has helped the UK economy survive downturns, but now the housing market is slumping badly. Those who don't opt for a sell and rent back scheme could be at increased risk of house repossession.
Low income homes at risk
The economy looks set to increase the divide between rich and poor; those who are cash-rich will not be affected by falling equity in their properties and can afford to ride out the economic storms. Those who rely on their homes as a financial nest egg might have to consider a sell and rent back scheme to afford day-to-day living and even to stop repossession threats. The new tax 10 pence tax rate has been criticised by MPs as the main losers will be those who are childless, under 65, and with an income under £18,500. This group in society that's worked hard to get onto the property ladder are most at risk - a sell and rent back scheme could offer one way out.
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.
