Apart from steering clear of contracts with short term tenancy agreements;
Another thing to look out for when dealing with the buy and rent back companies is what mortgage products are going to be available to enable you to buy the property back, should you be in a position to do so, under the terms of your contract.
Arranging a mortgage product becomes complicated when the buy and rent back company buys the property from you at a reduced amount and it states in the contract that you can buy the property back at the amount they paid for it + £?k, especially if the amount they paid + the £?k is below the market value of the property and you also wish to raise the money to cover costs and fees associated with the mortgage application.
For the purposes of a mortgage application this would be considered as a ‘sitting tenant, discounted purchase’ and this is difficult to place with a lender and include fees.
You will need to plan to save the fees required, including stamp duty (if applicable) when you are forward planning using the strategy of any of the buy and rent back proposals.
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