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The Sale and Rent Back scheme is a different approach to dealing with certain debt management problems that have arisen with a homeowner. The scheme is restricted to customers who are presently homeowners, but may wish, for one reason or another, to sell their property thereby removing themselves from the responsibilities contained within their mortgage contract.
Our Sale and Rent Back plans also provide for you to remain in your home as a tenant, and you will therefore now pay rent, instead of mortgage payments.
This Glossary article describes the various types of Sale and Rent Back schemes that we have within our portfolio of products, and gives an indication as to the diversity of situations that may be accommodated, together with the potential advantages and disadvantages of the various plans.
Table of Contents:
The Sale and Rent Back scheme is a different approach to dealing with certain debt management problems that have arisen with a homeowner, and is usually associated with one of the following circumstances:
a) In instances where the borrower has fallen seriously in arrears with his mortgage and/or secured loan repayments, and is facing eviction.
b) A quick sale is necessary because the family may be moving area or even emigrating.
c) The desire to remove the responsibilities and uncertainties relating to mortgage contracts and conditions.
d) Where property repossession is looming, but the family does not want to move away from friends, neighbours, schooling etc.
Taking these needs into account, Shire Direct have developed a portfolio of schemes, where we have access to a range of investors who are willing to purchase properties and then rent them back to you as the seller, or if you prefer, just to buy the property from you, but in view of the urgent need for the funds, the transaction is completed on a very quick basis – usually between 7-10 business days.
So, for those homeowners who need to sell their property, and relieve themselves of the burden and responsibilities of being a mortgage-payer, but wish to remain in the property as a tenant; we have a variety of plans to suit differing needs and requirements, and accordingly these schemes will generally incorporate one or more of the following features:
Case Study 1
Mr & Mrs P have decided to emigrate abroad and are due to leave the country within the next few weeks. However, they have been experiencing difficulties with selling their property, which has been on the market for several months.
Solution:
Arranged the immediate sale of their property using a Sale & Rent Back scheme. This transaction is usually very quick and fuss-free. The plan, in this case not only cleared the mortgage, but also left a sizeable lump sum.
As Mr & Mrs P did not wish to continue living in their property, the flexible nature of our Sale & Rent Back schemes provided an appropriate solution, by removing the ‘Rent-Back’ option.
Case Study 2
Mr R had a repossession hearing in 6 days. He had missed his last 4-months payments and so had been unable to obtain a remortgage, or secured loan to pay off the arrears. He also had an unsecured loan of £8,400 that he had also started to miss payments on.
Here the most appropriate scheme is a Sale and Rent Back plan. This scheme will allow Mr R to remain in the property, and also pay-off his mortgage, clear his arrears, and will leave him with a small cash surplus.
This product also includes 12 months prepaid rent, and therefore has the benefit of providing Mr R time to get back on his feet financially, without having to worry about making rent payments for a whole year.
Using the surplus sum left over from the sale, the next step would be to arrange a Full and Final Settlement on his unsecured debt, which amounted to a 30% reduction.
At the end of the 12 months - Mr R will have a number of options. He can:
Well firstly of course, to take advantage of the Sale and Rent Back scheme you must obviously be a homeowner. It’s also likely that your mortgage account will be in arrears, and you may well be facing the somewhat frightening prospect of repossession and eviction from your home.
This scheme acts fast! We are usually able to provide you with an offer within 7-business days, with completion of the purchase following on within the next 7-days, or a date to meet your requirements.
There are several variations of this scheme, and naturally we look to provide you with the most appropriate plan to suit your needs and requirements. The options will generally include one or more of the following features:
Advantages
Disadvantages
Yes we can!
Interested – like to know more?
Then please don’t hesitate to call us.
Here at Shire Direct we pride ourselves in being able to provide our customers with the individual attention that many of our contemporaries lack, and we always strive to make the process as fuss-free and painless as possible.
So, whatever your circumstances, and whatever your needs, our service is geared to providing the most appropriate solution for you. Thus if you are experiencing problems with debt, and have difficulties in making ends meet, don’t hesitate to call us. Our aim is to leave our customers with the simple task of signing the documents, in the sure knowledge we have carefully weighed up your situation, discussed the various options open to you, and completed the paperwork on your behalf.
If you would like to discuss how a “Sale and Rent Back” scheme could benefit you, then please call us in confidence. We will of course undertake an analysis of your financial situation, and from this information, we will discuss the appropriate options available to you.
We are confident that you’ll find our approach to be friendly yet professional and not in the slightest bit stuffy. Our Help-line, 08000 282 281 is open until 10.00pm daily, including weekends, and your call is free and without any obligation.
So why not make that first step of regaining control of your finances – call us today, you’ll be glad you did!
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Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.
