Rent-back isn’t just for those in trouble

PETE THOMSON, MANAGING DIRECTOR, RESIDENTIAL PROPERTY SOLUTIONS
PETE THOMSON, MANAGING DIRECTOR, RESIDENTIAL PROPERTY SOLUTIONS

Sale-and-rent-back is usually thought of as a facility of last resort for home owners with financial problems and who are facing repossession.

When all other options – including government rescue schemes and negotiating with lenders – have been exhausted rent-back is tabled as the final solution.

But it may surprise you to learn that distressed borrowers only account for a small portion of our business.

It surprised me too because when I started in this job a year ago that’s precisely what I thought rent-back was all about.

But I have learnt that there are plenty of valid reasons for home owners to switch to rent-back other than the threat of repossession.

Retirement planning, divorce, inheritance and relocation are just a few of the factors that have encouraged clients to rent rather than take the more obvious route of selling up.

In fact, selling a property and moving is often not a practical solution, especially when young families or job security could be affected.

And selling a home is an unpredictable and expensive business – hardly the perfect solution for those who want to gain greater control of their finances.

We’ve just put some case studies on our website that show the type of non-distressed circumstances which may lead home owners to consider rent-back. Have a look – they may change your view of this much misunderstood facility.