Sell and Rent: Questions Answered! Need HELP? FREE Property Advice!
Sell and Rent Back: Questions you should be asking!
So you’ve weighed up your options and you’ve decided that selling your house then renting it back is the right decision for you. Then you’ve done your research and found an FSA approved, reputable sale-and-rent company. Now you’re ready to sign up, what should you be checking, and what questions you should be asking?
How much will I get for my property from the quick-sell company?
This is a very good question to ask, and it should be your top priority. Before you sign over it is important to know exactly how much of the market value you will be paid and how this is calculated: do they use an independent surveyor? If they don’t then get your own valuation done so that you can compare this to their offer. Although you should expect to sell your house for less than market value (around 70-75%) you still want the highest offer possible.
What kind of tenancy will I have when I rent my house back?
Finding out what type of tenancy you will have is important in the sell-to-rent process. Government legislation means that the company has to offer you at least five years tenancy initially, but after this fixed term is over there is little stopping the company evicting you from your house. Finding out how other tenants have been treated by the company is a good way to gauge whether or not they are likely to do this to you. You should also be aware of how the company deals with rent arrears in case you come into financial difficulty in the future.
What charges should I be aware of before I sign up to a sell and rent scheme?
Before you sign with your sell and rent scheme you should have confirmation, in writing, of all the charges that you will have to pay. This should include rent, administration charges, arrears charges and the legal costs of selling your home. Some companies will cover the administrative costs and fees of sale but it worth checking rather than assuming. You should also find out information regarding how often rent can be increased and how these increases are calculated.
Can I buy back my property in the future?
If your financial situation changes in the future many people may be interested in buying back their house. It would be worth finding out from your chosen sell-to-rent company whether or not they offer this. If they do find out on what terms and what charges you would incur.
Is the rent-to-sell company I have chosen the right one?
This is a crucial question, and one you should be asking yourself throughout the process. There are lots of quick sale companies but a lot are looking to take advantage of your situation so it is important that you are informed and make the right decision. Make sure that the company you have chosen is FSA regulated, get the contact details of a tenant who has been through the process and also check that the company has insurance in case it develops financial problems in the future.
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