The easiest way to understand how our service works is to consider the following typical example.
John works for a car manufacturer and Sarah is a nurse and, 3 years after moving in to their new home, Sarah stopped work to have a baby. In fact, it was the first of 3 children and Sarah has not returned to work ever since.
John & Sarah’s finances:
John and Sarah purchased their house 9 years ago for £75,000
They had a mortgage of £67,500 (90% of their home’s value) and paid a deposit of £7,500 (the remaining 10%).
With overtime and bonuses, John’s salary increased steadily and, despite losing Sarah’s wage packet, they felt confident enough to replace their ageing car with a new one and take the kids on their first holiday abroad.
Costs going up as income falls
Redecorating the house and buying new clothes and toys for the kids soon started to put pressure on their credit cards. Unfortunately, they were then hit with two very unexpected events. Firstly, interest rates went up and they found that their monthly mortgage payments almost doubled. And secondly, to make matters worse, John was put on short-time working which meant he could no longer earn any bonuses and overtime.
Before they knew it John and Sarah were struggling to keep their finances under control and were receiving letters from their building society telling them they were in arrears. John felt sure that his short-time working would only be temporary and, as soon as he was back on full time, he would be able to make-up his missed mortgage payments.
Before they knew it John and Sarah were struggling to keep their finances under control and were receiving letters from their building society telling them they were in arrears.
Unfortunately, matters went from bad to worse, when John was told he was being put on a 3 day week, with little prospect of the situation improving in the immediate future. John and Sarah were now receiving letters from their building society threatening to repossess their home if they were not able to reduce their debts.
Borrow more or risk repossession?
John and Sarah’s house was now worth £155,000, so they thought about either remortgaging or getting another loan to pay off their arrears and their other debts. After all, the total of their mortgage, arrears and other debts was £95,000 which meant they still had plenty of equity in their home.
But despite trying dozens of lenders and speaking to a financial adviser, they could not find a lender willing to give them another loan. The combination of John’s reduced salary and being in arrears with their mortgage and credit card payments, meant no lenders were willing to help.
Sarah was starting to worry. If their home was repossessed, where would they live and what would happen to their kids’ education? They had just settled into school life and it would be heart-breaking to have to move them. Would the council be able to re-house them quickly and would it still be close to John’s work?
But then they had some good news. Their financial adviser recommended that they consider a sale and rent back scheme being provided by Residential Property Solutions Ltd. They had a look at the scheme and realised that it could be just what they were after. Most importantly, not only would it enable them to clear their debts and get their finances back on track, but it would also enable them to stay in their home. No need to move house, school or job.
A ‘stay at home’ solution
Here’s how the scheme works for Sarah and John.
Residential Property Solutions Ltd offered to buy John & Sarah’s home.
The house sale:
Residential Property Solutions Ltd arranged to have John and Sarah’s house valued. The valuation specified that it was worth £155,000 and Residential Property Solutions Ltd offered to buy John and Sarah’s home for a price of £108,500
Residential Property Solutions Ltd paid all the valuation and legal costs and agreed an affordable monthly rental… less than the amount they would have had to pay if they had taken out a bigger mortgage to clear their debts.
This was enough for them to clear their debts and have some money left over to provide a financial buffer for the future.
Although the price being offered by Residential Property Solutions Ltd was below their home’s open market value, John and Sarah realised that it may take them months to sell their home via an estate agent (if they could sell it at all), during which time their arrears would continue to mount-up and they may even face eviction. What’s more, even if they could sell their home, they would still have estate agent and legal fees to pay and then they would have nowhere to live. They quickly realised that selling their home via an estate agent was neither a realistic nor a desirable option.
Residential Property Solutions Ltd ensured that John and Sarah’s financial adviser explored and explained all the other options available to John and Sarah, including the various schemes available from the government. Having carefully considered their options, John and Sarah decided to go ahead with the Residential Property Solutions Ltd scheme.
The sale was sorted out in just a couple of weeks. Residential Property Solutions Ltd paid all the valuation and legal costs and agreed an affordable monthly rental with Sarah and John (which they were delighted to see was less than the amount they would have had to pay if they had taken out a bigger mortgage to clear their debts). John and Sarah signed a 5 year secured tenancy agreement, which means that Residential Property Solutions Ltd cannot suddenly change the terms of their tenancy or evict them from their home without good reason.
Back in financial control
John and Sarah were now back in control of their finances and had remained in their home throughout. In fact, no one even knew about their new arrangements and they were able to keep on living their life as normal.
And another piece of good news did eventually arrive. Three years after signing-up to the Residential Property Solutions Ltd scheme, John was not only back working full time but had also been promoted. Sarah had also decided to go back to work and their financial worries were well and truly behind them.
John and Sarah were now back in control of their finances and had remained in their home throughout… As a result, they decided to buy-back their home from Residential Property Solutions Ltd.
As a result, they decided to buy-back their home from Residential Property Solutions Ltd. John and Sarah’s house was revalued by two independent valuers and a final value agreed at £190,000.
And their neighbours, friends and family are still none the wiser!
The easiest way to understand how our service works is to consider the following typical example.
John works for a car manufacturer and Sarah is a nurse and, 3 years after moving in to their new home, Sarah stopped work to have a baby. In fact, it was the first of 3 children and Sarah has not returned to work ever since.
John & Sarah’s finances:
John and Sarah purchased their house 9 years ago for £75,000
They had a mortgage of £67,500 (90% of their home’s value) and paid a deposit of £7,500 (the remaining 10%).
With overtime and bonuses, John’s salary increased steadily and, despite losing Sarah’s wage packet, they felt confident enough to replace their ageing car with a new one and take the kids on their first holiday abroad.
Costs going up as income falls
Redecorating the house and buying new clothes and toys for the kids soon started to put pressure on their credit cards. Unfortunately, they were then hit with two very unexpected events. Firstly, interest rates went up and they found that their monthly mortgage payments almost doubled. And secondly, to make matters worse, John was put on short-time working which meant he could no longer earn any bonuses and overtime.
Before they knew it John and Sarah were struggling to keep their finances under control and were receiving letters from their building society telling them they were in arrears. John felt sure that his short-time working would only be temporary and, as soon as he was back on full time, he would be able to make-up his missed mortgage payments.
Before they knew it John and Sarah were struggling to keep their finances under control and were receiving letters from their building society telling them they were in arrears.
Unfortunately, matters went from bad to worse, when John was told he was being put on a 3 day week, with little prospect of the situation improving in the immediate future. John and Sarah were now receiving letters from their building society threatening to repossess their home if they were not able to reduce their debts.
Borrow more or risk repossession?
John and Sarah’s house was now worth £155,000, so they thought about either remortgaging or getting another loan to pay off their arrears and their other debts. After all, the total of their mortgage, arrears and other debts was £95,000 which meant they still had plenty of equity in their home.
But despite trying dozens of lenders and speaking to a financial adviser, they could not find a lender willing to give them another loan. The combination of John’s reduced salary and being in arrears with their mortgage and credit card payments, meant no lenders were willing to help.
Sarah was starting to worry. If their home was repossessed, where would they live and what would happen to their kids’ education? They had just settled into school life and it would be heart-breaking to have to move them. Would the council be able to re-house them quickly and would it still be close to John’s work?
But then they had some good news. Their financial adviser recommended that they consider a sale and rent back scheme being provided by Residential Property Solutions Ltd. They had a look at the scheme and realised that it could be just what they were after. Most importantly, not only would it enable them to clear their debts and get their finances back on track, but it would also enable them to stay in their home. No need to move house, school or job.
A ‘stay at home’ solution
Here’s how the scheme works for Sarah and John.
Residential Property Solutions Ltd offered to buy John & Sarah’s home.
The house sale:
Residential Property Solutions Ltd arranged to have John and Sarah’s house valued. The valuation specified that it was worth £155,000 and Residential Property Solutions Ltd offered to buy John and Sarah’s home for a price of £108,500
Residential Property Solutions Ltd paid all the valuation and legal costs and agreed an affordable monthly rental… less than the amount they would have had to pay if they had taken out a bigger mortgage to clear their debts.
This was enough for them to clear their debts and have some money left over to provide a financial buffer for the future.
Although the price being offered by Residential Property Solutions Ltd was below their home’s open market value, John and Sarah realised that it may take them months to sell their home via an estate agent (if they could sell it at all), during which time their arrears would continue to mount-up and they may even face eviction. What’s more, even if they could sell their home, they would still have estate agent and legal fees to pay and then they would have nowhere to live. They quickly realised that selling their home via an estate agent was neither a realistic nor a desirable option.
Residential Property Solutions Ltd ensured that John and Sarah’s financial adviser explored and explained all the other options available to John and Sarah, including the various schemes available from the government. Having carefully considered their options, John and Sarah decided to go ahead with the Residential Property Solutions Ltd scheme.
The sale was sorted out in just a couple of weeks. Residential Property Solutions Ltd paid all the valuation and legal costs and agreed an affordable monthly rental with Sarah and John (which they were delighted to see was less than the amount they would have had to pay if they had taken out a bigger mortgage to clear their debts). John and Sarah signed a 5 year secured tenancy agreement, which means that Residential Property Solutions Ltd cannot suddenly change the terms of their tenancy or evict them from their home without good reason.
Back in financial control
John and Sarah were now back in control of their finances and had remained in their home throughout. In fact, no one even knew about their new arrangements and they were able to keep on living their life as normal.
And another piece of good news did eventually arrive. Three years after signing-up to the Residential Property Solutions Ltd scheme, John was not only back working full time but had also been promoted. Sarah had also decided to go back to work and their financial worries were well and truly behind them.
John and Sarah were now back in control of their finances and had remained in their home throughout… As a result, they decided to buy-back their home from Residential Property Solutions Ltd.
As a result, they decided to buy-back their home from Residential Property Solutions Ltd. John and Sarah’s house was revalued by two independent valuers and a final value agreed at £190,000.
And their neighbours, friends and family are still none the wiser!