Questions to ask before selling your house and renting it back

If you are reading this and contemplating selling your house and renting it back, then it’s likely you are experiencing financial problems or even repossession. Many homeowners consider this for a host of reasons including mortgage arrears, divorce or separation, repossession and other personal reasons. It’s a difficult decision to make and one that many people put off until things get really bad.

An option before selling and renting your home is to check if you have any CCJs or bankruptcy order against you. If not you can speak to your mortgage adviser or your bank to check if there is any equity left in your home to release via a remortgage. If there isn’t then you start the process of selling your house and renting it back.

Before doing that though, there are important questions you should ask to ensure that you have a full understanding of the implications and what to expect.

How long will the tenancy you are offered be?

It’s likely that you want to stay in your home for as long as possible and even forever because of the attachment you have for it and the memories. You may also want stability for your kids and family as they are at school, because a move could mean a total change to the lifestyle you’ve built. So try to negotiate for a long tenancy, and 10 years or more if possible. Some landlords are notorious for kicking out tenants after just one year.

Is your rent going to be fixed or will it be going up like your age?

This is a big concern for many and one of the reasons why some tenants end up moving out of their home. Your rent should be fixed for at least 2 years so that it gives you the stability that you need if you want to rent it back. In fact, the reason you have considered selling and renting your house is because you want to keep your outgoings down, and if the rent keeps spiralling up, then it defeats the whole purpose.

For advice about renting or selling a house, contact the specialist team at Abode Lets who will be happy to help.