How does sell and rent back work?
Sell and rent back – everything handled by one company
Both the purchase and rental back to you are handled by the same company, so the process is kept very simple. Most sell to rent back companies promise to keep you informed at every stage, which has to be a good thing. And the process is completely discreet with no estate agents’ boards. While the details can vary from provider to provider, these steps are standard:
Step 1 Initial valuation
A sell and rent back valuation consultant will visit you at home. He or she will explain the ins and outs of the process, answer your questions and value your property. The valuation will be calculated based on comparisons with similar properties in your local area. The offer, when it is made, comes without obligation so unless you are completely happy with the offer and everything it involves, you can still say no.
Step 2 A free independent Valuation & Survey
Once you’ve agreed terms for selling and renting back with the sell and rent back company’s valuation consultant, you appoint a solicitor. The company will arrange and pay for an independent valuation and survey, and they’ll also pay for your solicitor.
The company have an independent valuation carried out to check that their valuation is accurate and on track. The independent valuation should be carried out by a RICS member (Royal Institute of Chartered Surveyors): rics.org
Step 3 Sell to rent back paperwork
As soon as everyone’s in agreement and ready to go, and all surveys are in and satisfactory, the company will instruct their solicitors to buy your property. At this stage, you’ll need to provide any documentation needed to smooth the process. It is your solicitor’s job to explain what paperwork’s required.
Step 4 Completing the contract of sale
Once all the paperwork has been gathered and signed by everyone involved, the contract is completed. Legally, this is just the same as completion on a private sale.
Step 5 The profits are paid to you
After subtracting your outstanding mortgage and any other money owed on your home, your solicitor will release a percentage of the remaining the funds – the profit – to you. With sell and rent back schemes the sale is usually completed within twenty eight days and you should be kept in the picture throughout the process.
Step 6 – Assured Shorthold Tenancy
Your sell and rent back company provides you with an assured shorthold tenancy contact, or agreement, which gives you the legal right to stay in your home and rent it, usually for at least a decade.
HomeOwnersAdviceCentre.co.uk great site on “Sell and Rent back”.