Don’t want to sell your home? Here are the alternatives

Why do people want to sell their homes?

This sounds like a question with a very obvious answer, but the answers do vary. The most common reasons for moving are:

• To upsize or downsize
• To raise capital
• To relocate for work or family reasons.

However, there are some people who are faced with the need to raise cash or relocate, but they do not wish to move from their home or, if they are relocating, do not wish to sell their home.

If you are faced with the need to raise money, or it is necessary to move out of the area you are living in for employment purposes but do not want to sell your home just in case the new job fails to work out, we have outlined some alternatives for you.

Sell and rent back

Sell and rent back schemes will allow you to sell your house to a company and then rent it back. This allows you to stay in your house and the area you are happy living in. The scheme is really for those who have found themselves in financial difficulties and are in danger of having their home repossessed by their mortgage lender.

Although the sell and rent back schemes will release cash quickly and enable you to settle your debts, the downside is you may have to sell your house for around 60-70% of its market value. However, the rates will vary from company to company.

Sell and buy back schemes should be the last resort to solving any financial problems – and there is an alternative.

Alternative to sell and rent back

You may be able to reduce your monthly mortgage repayments by extending your mortgage. If you think this may be an option for you to help settle your debts and remain in your home, it will be worth talking to your mortgage provider.

However, before you do this, make a list of the reasons why you need to extend your mortgage. You may have had a period of ill health which prevented you working. Or you may have been made redundant. If you are honest with your mortgage provider, and are not too behind with your repayments, you are more likely to receive a sympathetic hearing and remain in your home.

Become a landlord

Another option open to you is becoming a landlord. If you need to relocate and want to keep your house before making a final commitment or are having trouble paying your mortgage, you could consider renting your house out. However, you must inform your mortgage lender before taking this step. Some lenders will not allow you to rent your home, while others will allow it for a limited time. There is also the question of insurance. Your lender will insist that you take out landlord insurance when you let your house.

These are only outlines of some of the options open to those who want to keep their home as an alternative to selling it. However, these options, along with others available, have downsides which sometimes will outweigh the benefits.

If you are considering using some of the options open to you as an alternative to selling your home, you must take expert advice. So why not give us a call? We have years of experience in all matters concerning property sales and letting in Marylebone, Baker Street, and the surrounding areas.