‘Sell to rent’ – when you find a buyer for your home and move into rented accommodation. While this isn’t one of the most common moving steps, in 2020 we are finding that anything is possible – and sometimes necessary.
There are many strategic reasons to make the swap, as we have highlighted below, but we realise sometimes changing where and how you live is a matter of urgency, and we’re here to help.
As a dual agency with specialisms in both sales and lettings, we can switch you from owner occupier to tenant status with ease. Here are 4 reasons why it can be advantageous:
Cap moving costs
Buying a property has been made cheaper thanks to the stamp duty holiday but there are still costs attached to purchasing an onwards home. Moving into a rented property tends to have lower set up costs, with the deposit required capped at 5 or 6 weeks’ worth of rent and no tenant fees to pay. As a result, moving to the right rental property can provide a financial ‘breather’ for some.
Shorten your next chain
For many movers, the thought of being in a chain is daunting, knowing one person pulling out will jeopardise everyone’s success. If you buy from the position of living in a rented property, you become the start of the chain with no one else behind you. From here, you carry forward favourable advantages.
You could purchase a new build home or a property with no onwards chain – both of which should result in a straightforward, speedy transaction with a chain of just two. Alternatively, you could re-enter the open market and make offers with the bonus of having no chain behind you – an aspect that is favoured by sellers and often give buyers an advantage when there’s purchasing competition.
Free equity
We are living in strange economic times and for many homeowners, wealth is tied up in a property. A smart home move can be organised by us to free equity to provide a cash lump sum, re-finance or fund a business or facilitate a new lifestyle. We can help you work out the numbers, taking into account the value of the home you are selling, any outstanding mortgage and the cost of a rental property where you’d like to live.
Try before you buy
We are helping more movers than ever make a different lifestyle or location choice, especially now many professionals have been given the option to work from home. Moving from an owner-occupied property to a rental home affords flexibility – handy if you’re relocating to a new area or totally new setting and you’d like to sample a change before you commit to a purchase. Tenancy agreements can be arranged on a short-let basis – for as little as 3 or 6 months, for instance – as well as the traditional 12 month contracts.
If you’d like to explore the ‘sell to rent’ option, get in touch. We can create a plan of action that includes marketing your home for sale and finding you a new home to rent.