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.
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