Equity Release or Sell & Rentback?
We are one of the area's leading Sell & Rentback specialists, and the first to introduce a bespoke Buyback Option programme to the UK.
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us for advice NOW!
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You can release equity in 1 of 4 ways.
- Sell your home & move out/trade
down
- Re-mortgage to a higher LTV (Loan
to value - this is explained below)
- Take out a secured loan
- Sell & Rentback (with an option to
buy later)
Sell & Move Out
The advantage of this route is that you are likely to
realise 95% to 100% of the house value, however, you
will need to spend some of this money buying another
house unless you have made arrangements to live with
someone else. It also is the longest in terms of
timescale as you have no control over how fast the other
party (the buyers) move. (We can buy houses in as little
as 3 days - click here for our page on Quick Sales.)
Re-mortgage
If you have a £30,000 mortgage on a house worth £100,000 then lenders call this a 30% LTV (Loan to Value). Most
lenders will allow you to remortgage up to 95% LTV
meaning a new lender might lend you £95,000. the only
stipulation is that you repay the original loan of
£30,000 - the rest is yours to spend on whatever you
want. However, your monthly repayments will go up unless
your broker can achieve a better rate of interest.
See our
specialist remortgage page or Frequently Asked Questions for more details of
this option.
Secured Loan
The advantage of a secured loan is that in most
cases, you will not affect your mortgage status, so if
you have a big redemption penalty (see FAQ for more
details on these ), then you can still borrow more money
without paying large fees to your mortgage company.
Also, rates are often better than an unsecured loan, and
you have more chance of getting an unsecured loan if you
have adverse credit. The disadvantage is that they are
more expensive than a mortgage (as the rates are often
higher) and that if you stop paying the loan the lender
can repossess your home.
Sell & Rentback
A Sale & Rentback is perhaps the easiest of the four
options to set up. The basic idea is that we will buy
your home, rent it back to you at a pre-agreed rent for
a term you set, and at the end of the term, you have the
option, but not the obligation, to buy back your home
for a pre-agreed price. Alternatively, you can
renegotiate for another rental term or walk away owing
nothing. This is good for anyone who
wants a a few years of stress free ownership to re-build
their creditworthiness, and perhaps concentrate on
settling all other debts before buying back their home.
The best feature of this programme is that the buyback
price is set at the beginning of the agreement, so even
if the house is worth £50,000 more than the pre-agreed
price at the end of the term, we will still sell
you the house at the pre-agreed buyback price. All of the rest of
the equity belongs to you. At any time you may cancel
the agreement with just 30 days notice.
However if you have no interest in, or ability to,
buy the house back then unless you take advantage of our
Sale & Resale plan, then you stand to lose a percentage
of your equity. As this is a big decision, it is always
better to talk it over with one of our counsellors
before making a decision.
Click
here
to request an appointment.
Whatever your decision, we always recommend that you
think carefully before committing. We will happily advise,
but will never push you into a decision that you have
not thought about carefully.
I want to do it. How do I start?
OK. First thing is to call
us and we will send an advisor round to talk you
through the whole process. Meanwhile, please request a 'Redemption Figure'
from your mortgage company, and any other lenders
who have a 'charge' on your home (i.e. companies you
have borrowed money from which has been secured on the
house). This will take between 5 to 10 working days, so
it is best to do it now regardless of what you
ultimately decide (do check whether there is a fee
involved in generating the redemption figure). You do
not need to wait for the redemption figure to come
through before calling us for an appointment. During the
process, you may speak to your
advisor as many times as you want, and we will pay for
all of the legal & valuation fees. If
you have any initial questions, please check our FAQ's.
What would you like to do now? Choose from the
following list.
Remember - we never charge you a fee
- we make our money from your successful solution.
*We will pay you £200 in cash
if can't provide you with a viable solution within 30
days.
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