Featured Properties

Sale and Rent Back - A Quick Guide

Homeowners

If you’re trying to sort out money problems and own a home, our ethical sale and rent back referral scheme gives you the opportunity to clear your debts without needing to move home. Even if you just want to sell your property quickly and are willing to do so for a price below open market value, we may still be able to refer you.

The service is:

Regulated by the Financial Services Authority
Provided by qualified advisers
Fair, fully transparent and safe
Designed to accommodate your specific needs
Affordable and fair – no up front fees or onerous terms

Abides by the principles and codes of practice of:

National Landlords Association
Association of Residential Lettings Agents
Sale and Rent Back is now an authorised activity regulated by the Financial Services Authority. Town and Country work as an introducer only to two of the UK’s major regulated firms in this market
Association of Mortgage Intermediaries
Associate Member of the Council of Mortgage Lenders

Assess your needs

Once assessed, if acceptable, a qualified adviser will visit you. They will:

Explain how the scheme works and the options available to you
Ensure the scheme is right for you
Tell you about the other options which may be available (such as government schemes)
Assess your financial circumstances
Arrange to have your house valued
Inform you about your right to change your mind
Provide you with a copy of the customer charter

When you’re ready to proceed, the adviser will arrange for a conditional offer to be posted to you. The conditional offer will state:

How much they are willing to pay for your house, which is usually between 60% and 75% of its open market value
The term of your assured tenancy agreement, which can be for periods between 2 and 5 years
The rent they will charge for you to remain as a tenant

It is called a conditional offer because it will require further information such as income details, a gas certificate and a valuation report. The conditional offer is valid for 30 days.

The meeting with the adviser is free of charge and, if you receive a conditional offer, you will not be pressured into making a decision and will have the right to change your mind.

Buying your house

Before buying your house, they will:

Ask you to confirm that you understand and are happy with their conditional offer. This does not commit you to proceed and you can still change your mind, at no cost to yourself
Value your house. A chartered surveyor will produce a valuation report, which they will pay for. If the valuer needs access to your home, they will phone you to arrange a convenient time. They then make you a final offer
Advise you to take independent legal or financial advice
Offer you a free legal service from a panel of independent lawyers. If you prefer to use your own lawyer, they will pay £500 towards your legal cost
Ask you to sign a sale and rent back agreement. This is a legally binding document confirming the basis on which they will buy your home from you
Ask you to sign an assured shorthold tenancy agreement. This specifies the basis on which they will rent your home back to you

All dealings with you will remain confidential and will not be divulged to any third party without your prior permission.

Renting your home

The terms of your tenancy will be explained in an assured shorthold tenancy agreement, which will run for an agreed period up to 5 years.

As a tenant, you will have a number of important responsibilities, which include the following:

Maintenance – you must continue to look after the property and report any problems
Improvements – if you want to make any improvements such as decorating or installing a new bathroom, you should check first.
Leaving – if you want to leave the property, they will expect it to be in no worse condition than when they purchased it from you.
Utilities – you will be responsible for the payment of all utilities. These include gas, electricity, telephone, water rates and council tax.
Insurance – they will pay for buildings insurance, but you will be responsible for insuring the contents of your home.

As your landlord, they will:

Ensure your house remains in a safe state of repair. This includes maintaining the electrics, plumbing, central heating, windows and the roof
Pay for buildings insurance
Maintain any gas appliances in accordance with statutory regulations
Retain a full set of keys. However, they will not enter your property without your permission, unless it is an emergency

Buy back your home

If, at any time during your term as a tenant, you want to buy back your home, you can do so. This enables you to benefit from potential increases in the value of your home, even though you are no longer the owner.

What’s more, you may benefit from a discount depending on the terms of the scheme you enter into. This offer is only valid if the rent has been paid in full and on time.

To set a price to enable you to buy back your home, they work out its open market value based on the average of two valuations. They then apply any buy-back discount which is stated in your sale and rent back agreement. The buy-back discount is applied to the difference between the price at which they sell it back to you.

The buy back price cannot be less than the original market value and completion must occur within 30 days of the valuation.

Sale and Rent Back - Customer charter

The promise to you:

Never pressurise you. You will be in control and your property will be bought in a timescale that suits you. You will always be dealt with politely and communicated with in plain English.
Ensure that you fully understand everything they tell you and make you aware of any alternatives you should consider.
Inform you of your right to change your mind at any time, at no cost to you.
Advise you to take independent legal and financial advice.
Pay £500 towards your legal expenses, or offer a free legal service if you decide to use a nominated solicitor
Pay for a valuation report by an independent qualified chartered surveyor and share the findings with you.
Advise you to continue with any loan or mortgage repayments until you have sold your property.
Offer you a secure shorthold tenancy agreement and explain your future rental payments.
Offer you the opportunity to buy back the property in the future.
Keep all your dealings confidential and not divulge them to any third party, without your prior permission.

Authorisations - for details view our Regulations and Authorisations page

Instruct us today - use our Sale and Rent back form

Main Menu