Sale and rent-back

What is sale and rent-back (SRB)?

Sale and Rent-Back is a scheme where you sell your home at a discounted price, and in return you stay living there as a rent-paying tenant for a fixed term. REMEMBER: It is not a type of equity release.
Typically SRB companies purchase people’s houses for 70% to 80% of the market value. Theses firms usually pay all the fees and costs, and then rent the property back to the original owners at market rent, or sometimes less than their mortgage payments if these were lower than the rental value.
SRB is now an authorised product and as such any company offering SRB must be authorised by the Financial Standards Authority (FSA).

Sale and rent-back uses

SRBs are generally used to assist people with money problems, and those fearing repossession. Such schemes could release some extra capital to clear outstanding mortgages and arrears and/or other outstanding debts. SRB is usually seen as a means to an end, rather than the end itself.

Maximum release is typically 75% of house value.
Usually 5 years (minimum) assured tenancy.
No fees/hidden charges (SRB firms pay for valuation, legal and other fees)
SRB firms usually advertise that they can complete quickly – usually within the week.
SRB firms are also discrete with no need for friends, family and neighbours to know anything has changed.
They will usually work with the courts to stop eviction.
You can buy back your home (usually an option set out from the start of the arrangement)
Remember there is no obligation to proceed.

Any age (typically 18+)
England, Scotland and Wales (not N. Ireland)
Your ability to afford the rent is checked by the Sale and Rent Back firm before an Offer is made.

For more information about Sale and Rent Back Scheme’s call us on:
08448 247 260 or use this link to ask us any questions

This content is provided on informational basis and as such does not constitute advice.

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