Do You Understand The Sale And Leaseback Market?
As capital becomes ever scarcer we are seeing more and more UK householders looking at the ever growing sale and leaseback market. This market allows home owners to sell their homes to financiers and then arrange a leaseback and rental agreement - very often for the rest of their lives. Until recently this area seemed to be more popular with the older generation but times are changing, but do people understand what they are doing?
The number of younger home owners looking to raise capital this way is growing, but while many see it as an easy way out of their troubles this is not always the case. While it all sounds very good, do not forget that many people will be selling at the bottom of the market, and often receive a price which is even a discount to the market value. The need to balance up the need for funding with the possible reduced price and rental payments in the future is vital, so this will not always appeal to every one.
Advice should be sought at a very early stage, and if you have any doubts these should be allayed before you sign on the dotted line.
Share this..
Related stories
Is confidence in the Irish economy misplaced?
The Irish economy has been very much in the news over the last few weeks and months with the collapse of the financial sector, significant government cost-cutting and various altercations with unions. However, there is a general feeling that the economy is on the verge of a turnaround with the Irish Prime Minister, Brian Cowen, suggesting that a return to rapid growth could happen as early as 2010...
Read MoreTullet Prebon warns of sovereign debt default in 2010
Inter-dealer broker Tullet Prebon, which arranges trades between market participants, has today warned that it expects a second crisis to hit the worldwide economy in 2010 caused by sovereign debt defaults. This is an unwelcome reminder that many governments around the world have seen their finances stretched to breaking point and indeed some countries may default on their sovereign debt in 2010....
Read MoreWhy do low income energy customers get such a bad deal?
The revelation that some low-income families are losing out to the tune of £100 a year by simply using prepaid energy meters is one of the more bizarre elements of the UK energy market. If we take a step back and consider the situation, we are looking at families on relatively low income, who may have financial issues and are allegedly being charged up to £100 a year more than those paying their...
Read MoreRecord £63 million compensation bill lands on nPower mat
UK energy giant nPower has this week been hit with a £63 million compensation bill in relation to errors in the company's computerised billing system in 2007. It is believed that as a consequence of these errors a number of gas customers were charged for fuel which they did not use with the situation only coming to light some time later. So what has nPower agreed to do? The company has agreed...
Read MorePensioners hit by tax code error
It has been revealed that pensioners in the UK have been dragged into the rogue tax code saga which has seen millions of incorrect tax code forwarded to taxpayers in the UK. While pensioners have been warned to be on the lookout for incorrect tax codes, which could in a worst-case scenario see people paying over £100 extra tax a month, it is not yet clear exactly how deep the problem goes. Thi...
Read More