Home  Real Estate
| Ask Questions to Avoid the Sell and Rent Home Trap | November 6, 2009, 12:01 am | visits: 0 | wordcount: 545
|
By Frank Hendrickson
There has been a great deal of negative press recently regarding sell to rent back schemes. Such schemes are offered to those homeowners who are struggling to meet their mortgage repayments or who have fallen behind on their repayments and for whom repossession is a huge threat.
It seems that some companies are less than ethical when it comes to making a fair offer. Some offer as little as 60% of the value of the property. Some buyers sell the properties on to buy to let landlords, who may fail to maintain mortgages which leads to banks repossessing anyway. Some considerably boost up the "affordable" rent agreement, which leaves tenants again with a struggle to remain in the property. Due to factors such as this and more, many homeowners do not have the deal they thought they were getting and have fallen victim to sell and rent back company traps. If you are considering selling your home and renting back here are some questions that you must ask the company before signing your home away, if you want to avoid falling into a trap and a decision you later regret.
One of the first questions that you should ask is how long you are able to rent back the property. Some companies lead homeowners to believe they can rent back indefinitely. However, in the majority of cases there is no actual lifetime guarantee. If the company you are considering selling your home to tell you that you are able to remain in the property for life, then ensure they provide you with this information in writing in a legally binding tenancy contract.
You may want to find out if you have the option of being able to buy back the property in the future if you situation allows and if so how the company works out the amount you have to pay. If the company refuses to offer you the chance to buy back the property, then you may want to ask yourself why this is, as this may be an indication that they are not interested in you staying on in the property over the long term. If the company does offer you the option of buying back then you need to ask how they work out the figure you are given. It is possible that companies will provide you with a set figure, which you are able to pay over time, at the time of you selling the property. Some ask that you pay a percentage of the true value and others may ask that you pay what they paid you for the property plus a set amount or premium on top of this. Whatever option you are given it is essential that you get the figure in writing.
When you take the option of being able to sell to rent back you want to ask how long the rent will be fixed and how the company will review it. Usually the rent will be fixed for the initial tenancy agreement. However, some companies may include break clauses in the agreement, which would allow them to increase the rent before this period had ended. Generally, you can expect a slight increase in rent every 1 or 2 years but make sure that you get everything in writing.
Frank Hendrickson, Freelance Writer. We are committed to providing free helpful information about the real estate market. For more information about the sell to rent back deals visit http://www.caribbeanyellowpagesonline.com/ask-questions-to-avoid-the-sell-and-rent-home-trap/
Source:www.isnare.com | |
|
|
|
| |
|
| Related articles... | |
|
|
|
|
Set this page as your
home page
Add this page to your favorites:
|
|
|
