DON’T SELL! WHY NOT RENT YOUR PROPERTY OUT!

Because of the flexibility offered by our fast homebuyer solutions package HBFS offer trade prices for property meaning that our clients will not receive the full market value for their property. For many people this is not acceptable but they may still consider it to get their “dream home”. There may be an alternative that you wish to consider which will not only solve your house selling problem but also give you a good investment return.

Why not rent your existing house out and still release the equity that you need to make that all important move. Recently buy to let mortgages have developed significantly. Homebuyer Financial Solutions have teamed up with the top commercial mortgage brokerage, The Money Centre, who can help our clients release the equity they need to move house. They can arrange buy to let mortgages for up to 90% of your property’s value.

When you consider selling costs and the money you have said goodbye to when you actually bought the property, plus any discount negotiated on your sale price by the buyer, the equity you can release could be around what you would have received if you sell. If your home is put on a buy to let mortgage then you will be free to complete on your new property using a residential mortgage as these lenders understand that a buy to let mortgage is paid by the rent on that property, not by you. As a result taking out a buy to let mortgage should not affect the amount you can borrow with your residential mortgage lender.

It gets even better than this. As we are all aware property prices have surged over the last 10 years. In fact property prices have doubled every 10 years since the 1930’s. If you were to retain your existing property as a buy to let you can benefit from any future increases in property prices.

As an example, let us presume that your existing home is worth £200,000. If you sold this and bought a house worth £300,000 and property prices went up 5% in the next year then you would have benefited from a £15,000 increase in the properties equity. If you kept your existing property and rented it so the rent covered that mortgage and still bought your new home you would benefit from a 5% increase on both the properties with a combined value of £500,000 meaning your equity increase would be £25,000 in that year.

To find out more about this option please fill in the form below to talk to a consultant at The Money Centre. The Money Centre also provides a buy to let guide which covers this in more detail again fill in the form to receive this.

So why not rent your property out and still move to your new property. It could be the most profitable choice you ever made.

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