House Sale and Leaseback – How does it work?

We are all facing some tough times at the moment and this is especially the case for homeowners with mortgages that they are struggling to pay. For many in this situation the threat of repossession looms and that can make daily life very tense. If you are looking to stop home repossession then a house sale and leaseback type arrangement might be a great option for you. Essentially, the home lease option allows you to sell your home for cash and then lease it back, ensuring that you can still stay in your home, but that the debt that has been hanging over you is cleared.

The way this works in practice is that a price is agreed for the sale of the property and usually contracts are exchanged on the same day – that’s one of the major advantages of a home lease option, that it allows for fast home sale in Northampton, or anywhere else in the country, at the kind of speed that it would be difficult to find on the open market. This can be particularly useful if you are struggling with mortgage repayments and looking to be released from the monthly commitment without seeing your home repossessed. In fact there are many circumstances in which this type of arrangement works very well, for example where you are going through a divorce and need to achieve a fast home sale, or where you want to sell the property but cannot afford the repairs that would be required in order to obtain the asking price.

Once the contracts have been signed, the responsibility for paying the mortgage moves over to the business that has purchased your property and you are free of the commitment. When this stage is reached then all that is left is to complete the purchase on the property. This typically can take anywhere between three and five years – generally, the longer it takes to complete the purchase, the closer the figure that is reached will be to the asking price of the property. When the property is finally transferred over then its ownership passes away from you and in return you receive the equity from the property.

A home lease option is a simple and flexible process and Jemima Poppy is a very experienced partner in this area – for more information take a look at the home lease option information on our website and contact one of our team.