| 1. How long can I stay living in my property? | | | | agreed rental will be fixed for. It should be for the |
| This is probably the most important question for you to | | | | length of the initial tenancy, so make sure there are no |
| ask any Sale and Rent Back Company. If you want to | | | | break clauses in the tenancy agreement that would |
| stay in your property indefinitely it is important to make | | | | allow for rent increases before the term is up. Make |
| sure that it is also the intention of the company you | | | | sure you understand and get in writing how future rent |
| are dealing with to keep you there indefinitely. They | | | | increases will be calculated. This may be every 1 or 2 |
| should provide this in writing, in both letters of intent and | | | | years which is normal, but it is important you know |
| legally binding tenancy agreements. | | | | how this will be calculated and that the company is not |
| 2. Do I have the option to Buy Back and what will the | | | | free to suddenly increase the rental to an unaffordable |
| Buy Back price/formula be? | | | | level. |
| Even if you can not foresee a time when you would | | | | 6. Do you intend to sell my property in the future (what |
| be in a position to buy back your property it is worth | | | | are your intentions)? |
| asking this question and getting it put in writing. You | | | | Just asking this question should give you some |
| never know when your circumstances might change | | | | understanding of the person or company's intentions |
| and you may want and be in a position to buy your | | | | towards you and your home. If you are in any doubt |
| property back. Whether a company is prepared to | | | | about their intentions or their honesty think very |
| offer you the option to buy back is also a good | | | | carefully before entering into a Sale and Rent Back |
| indicator of their intentions. If they are not willing to give | | | | arrangement with them. |
| you a buy back option you may want to question how | | | | 7. Who looks after repairs? |
| concerned they are about keeping you in your home | | | | This should be clearly stated in the tenancy |
| long term. An important part of the buy back option is | | | | agreement. Make sure you understand exactly what |
| what the price or formula will be for this. Some | | | | the Sale and Rent Back company (your new landlord) |
| Companies offer a set buy back price for a certain | | | | will look after, and what will be your responsibility. |
| number of years, others offer a percentage of market | | | | 8. Will I have independent legal representation |
| value and others a "premium" which is a set amount | | | | throughout the sale? |
| they expect you to pay above what they have paid | | | | It is important to make sure you have legal |
| you for the property. Whichever of these options is | | | | representation independent from that of the company |
| used for the buy back price or formula, you need to | | | | you are dealing with. Most Sale and Rent Back |
| make sure you understand and are happy with it, and | | | | companies will offer to appoint a solicitor for you and |
| get it in writing. It is also worth doing the calculations | | | | pay the legal fees, however this should be separate |
| and making sure that you do not end up paying more | | | | from their legal representation. This way you can be |
| than the market value for your property when buying it | | | | assured you are receiving impartial legal advice. |
| back. | | | | 9. Are there any fees? Do I have to pay anything |
| 3. Will there be a Tenancy Agreement in place? | | | | upfront? |
| It is absolutely vital that there is a legally binding | | | | You shouldn't ever have to pay any fees when selling |
| tenancy agreement in place for your property, | | | | and renting back your home. If a company asks you |
| otherwise you will have absolutely no protection and | | | | for an upfront valuation fee, run! Some less reputable |
| could be asked to leave the property at any time. | | | | companies are in the business of taking the valuation |
| 4. Does the Tenancy Agreement have the option to | | | | fee, making you a ridiculously low offer, and then |
| renew at the end of each period? | | | | keeping your valuation fee when you don't accept their |
| An Assured Shorthold Tenancy Agreement (AST) will | | | | offer. A reputable Rent Back company should be able |
| be for a fixed term, typically 6 months, 1 year or 2 | | | | to provide you with a quotation or offer without asking |
| years. If it is your intention to stay longer than this then | | | | for a valuation fee. You shouldn't pay any fees at all |
| make sure the AST includes the Right to Renew, | | | | for the sale process, all good Rent Back companies |
| meaning at the end of each term as long as you have | | | | will pay all costs including your solicitors fees as part of |
| abided by the terms of the agreement you would | | | | their service. |
| have the legal right to renew for another (and | | | | 10. Can I see references from people who have used |
| consecutive) terms. | | | | your service? |
| 5. How long is the rent fixed for and how is it | | | | Any good, reputable company should be able to |
| reviewed? | | | | provide you with testimonials from current clients. |
| When accepting an offer for Sale and Rent Back | | | | Make sure you read these carefully, and are sure that |
| make sure you ask (and get in writing) how long the | | | | they are genuine. |