28
Jul
Sale and rent back an "excellent" way to free up equity, expert
says
Sale and rent back schemes can be an "excellent" option for
troubled homeowners looking to free up equity, according to one
property adviser.
The co-owner of the Homeowners Advice Centre has revealed that he
is working with several tenants who are now in a better situation
due to benefitting from the money they released when selling to the
firm.
Nevertheless, Chris Jenkins advised those considering selling their
property and renting it back to be aware that in doing so they will
be giving away some of their equity.
"Consider other options such as a remortgage or equity release and
make sure that you are certain that sale and rent back is for you,"
he advised.
In related news, research by insurance group Norwich Union
discovered that the average value of a property used for equity
release decreased by approximately £18,000 above the UK
property average between 1999 and 2008, while 80,000 Norwich Union
customers released £2.8 billion of equity from their homes in
the last ten years.
