The following are based on real cases, but client's names have been changed for confidentialiity reasons.
The endowment shortfall conundrum
Mr and Mrs Jones are in their mid fifties and, although they are both in full time employment, they're starting to look forward to retirement in a few years time. Having undertaken a review of their mortgage they have realised that their endowment policy will fall well short of paying their outstanding mortgage balance in 7 years time.
They have considered a number of options, including converting to a repayment mortgage in order to make up the shortfall, but unfortunately do not have sufficient disposable income to meet the higher monthly mortgage repayments. Mr and Mrs Jones are therefore concerned that they will be left having to repay an expensive mortgage in retirement. They also have some unsecured debt they are unable to clear and are simply making interest repayments at the moment.
Mr and Mrs Jones can, however, afford a realistic monthly rental and therefore decided that a sale and rent back deal will enable them to pay off their mortgage and unsecured debt and, as a result, significantly reduce their monthly outgoings. They will also be able to put a substantial sum into their private pension in readiness for their retirement.
Mr and Mrs Jones were planning to sell and downsize in retirement anyway and so sale and rent back provides them with a very practical solution to their financial predicament.
Cheers for a practical solution!
Emma and John, who have two children, are in their late thirties and run a pub which is owned by a brewery. They have been given the option to buy the pub; an offer they are eager to take up because they believe they can boost profits by up to 50% by being able to strike more competitive deals on stock, as a result of not being tied to one particular supplier.
Emma and John have secured commercial funding for 60% of the purchase price of the pub and need to raise the remainder as a deposit. They do not currently live in the premises and own their own home, which is worth £200,000 with an outstanding mortgage of £46,000.
Due to historic credit issues, they have experienced problems raising capital and have instead decided that sale and rent back provides the answer to their needs. They can afford a realistic monthly rental and Residential Property Solutions Ltd has offered Emma and John £145,000 for their home, which provides them with sufficient funds for a deposit and to make improvements to the pub. What's more they can continue to live in their home before moving into the pub in approximately 3-5 years time, when their children have left home and when renovation work on the pub has been completed.
A pressing financial problem
Paul and Sarah, who are in their mid forties, own a semi-detached property worth £160,000. They have a mortgage of £76,000 and have never missed a payment since first taking it out with a building society nearly twelve years ago. However, they have also accumulated approximately £70,000 of unsecured debts and, because Sarah has suffered
a long-term illness which has prevented her from working, they have struggled to repay their debts.
Unfortunately, one of their creditors is now looking to make Paul and Sarah bankrupt, because they are unable to raise any additional capital to repay their outstanding loans. Residential Property Solutions Ltd has offerd to purchase their home under a sale and rent back agreement for a price of £120,000 and has also agreed an affordable monthly rental. This will allow them to clear their mortgage and it provides them with a lump sum of approximately £45,000 which, with help from a specialist debt management company, will enable them to repay all their unsecured debts on a full and final settlement basis, reducing the total amount owed by £25,000.
A happy retirement
Mrs Harris is 65 years old and is retired with a decent pension income. She lives in a property worth approximately £300,000 and two years ago took out a lifetime mortgage for the maximum amount available to her, which was £45,000. However, the amount now outstanding on her lifetime mortgage has risen to £62,500.
After careful consideration Mrs Harris has decided to move into sheltered accommodation within the next 5 years. In the mean time she wants to travel and see parts of the world she has not previously seen, which means she needs to release further equity tied up in her home.
Residential Property Solutions Ltd is able to offer Mrs Harris £225,000 for her house, based on figures provided by its online calulator. This means that Mrs Harris can continue to live in her home paying an affordable rent, see the world and look forward to moving into sheltered accommodation in 5 years time.
Going their seperate ways
Mark and Sally are in the process of getting divorced and are concerned about the impact their separation will have on their children, who are aged 12 and 14 and are very settled in their local school. They both desperately want to remain in the area as it is where they have always lived and they have family close by.
Mark and Sally have tried to sell their marital home so they can each buy somewhere smaller. Unfortunately, demand for their type of property is currently low and the style of houses they are looking for are too expensive for them to afford individually. They have therefore agreed that Sally will remain in their exisiting home, whilst Mark will move out and buy a smaller house somewhere else.
However, Mark has found that mortgages are more difficult to obtain and he does not have sufficient funds to put down as a deposit. Their existing home is worth £245,000 and they currently have a joint mortgage of £130,000. Residential Property Solutions Ltd has agreed to buy their property for £170,000, giving them a lump sum of £40,000 which Mark can use to purchase a new home. The rent on the existing property is affordable for Sally, who is planning to remain in there until her children have left their current school when they are 17.
The following are based on real cases, but client's names have been changed for confidentialiity reasons.
The endowment shortfall conundrum
Mr and Mrs Jones are in their mid fifties and, although they are both in full time employment, they're starting to look forward to retirement in a few years time. Having undertaken a review of their mortgage they have realised that their endowment policy will fall well short of paying their outstanding mortgage balance in 7 years time.
They have considered a number of options, including converting to a repayment mortgage in order to make up the shortfall, but unfortunately do not have sufficient disposable income to meet the higher monthly mortgage repayments. Mr and Mrs Jones are therefore concerned that they will be left having to repay an expensive mortgage in retirement. They also have some unsecured debt they are unable to clear and are simply making interest repayments at the moment.
Mr and Mrs Jones can, however, afford a realistic monthly rental and therefore decided that a sale and rent back deal will enable them to pay off their mortgage and unsecured debt and, as a result, significantly reduce their monthly outgoings. They will also be able to put a substantial sum into their private pension in readiness for their retirement.
Mr and Mrs Jones were planning to sell and downsize in retirement anyway and so sale and rent back provides them with a very practical solution to their financial predicament.
Cheers for a practical solution!
Emma and John, who have two children, are in their late thirties and run a pub which is owned by a brewery. They have been given the option to buy the pub; an offer they are eager to take up because they believe they can boost profits by up to 50% by being able to strike more competitive deals on stock, as a result of not being tied to one particular supplier.
Emma and John have secured commercial funding for 60% of the purchase price of the pub and need to raise the remainder as a deposit. They do not currently live in the premises and own their own home, which is worth £200,000 with an outstanding mortgage of £46,000.
Due to historic credit issues, they have experienced problems raising capital and have instead decided that sale and rent back provides the answer to their needs. They can afford a realistic monthly rental and Residential Property Solutions Ltd has offered Emma and John £145,000 for their home, which provides them with sufficient funds for a deposit and to make improvements to the pub. What's more they can continue to live in their home before moving into the pub in approximately 3-5 years time, when their children have left home and when renovation work on the pub has been completed.
A pressing financial problem
Paul and Sarah, who are in their mid forties, own a semi-detached property worth £160,000. They have a mortgage of £76,000 and have never missed a payment since first taking it out with a building society nearly twelve years ago. However, they have also accumulated approximately £70,000 of unsecured debts and, because Sarah has suffered a long-term illness which has prevented her from working, they have struggled to repay their debts.
Unfortunately, one of their creditors is now looking to make Paul and Sarah bankrupt, because they are unable to raise any additional capital to repay their outstanding loans. Residential Property Solutions Ltd has offerd to purchase their home under a sale and rent back agreement for a price of £120,000 and has also agreed an affordable monthly rental. This will allow them to clear their mortgage and it provides them with a lump sum of approximately £45,000 which, with help from a specialist debt management company, will enable them to repay all their unsecured debts on a full and final settlement basis, reducing the total amount owed by £25,000.
A happy retirement
Mrs Harris is 65 years old and is retired with a decent pension income. She lives in a property worth approximately £300,000 and two years ago took out a lifetime mortgage for the maximum amount available to her, which was £45,000. However, the amount now outstanding on her lifetime mortgage has risen to £62,500.
After careful consideration Mrs Harris has decided to move into sheltered accommodation within the next 5 years. In the mean time she wants to travel and see parts of the world she has not previously seen, which means she needs to release further equity tied up in her home.
Residential Property Solutions Ltd is able to offer Mrs Harris £225,000 for her house, based on figures provided by its online calulator. This means that Mrs Harris can continue to live in her home paying an affordable rent, see the world and look forward to moving into sheltered accommodation in 5 years time.
Going their seperate ways
Mark and Sally are in the process of getting divorced and are concerned about the impact their separation will have on their children, who are aged 12 and 14 and are very settled in their local school. They both desperately want to remain in the area as it is where they have always lived and they have family close by.
Mark and Sally have tried to sell their marital home so they can each buy somewhere smaller. Unfortunately, demand for their type of property is currently low and the style of houses they are looking for are too expensive for them to afford individually. They have therefore agreed that Sally will remain in their exisiting home, whilst Mark will move out and buy a smaller house somewhere else.
However, Mark has found that mortgages are more difficult to obtain and he does not have sufficient funds to put down as a deposit. Their existing home is worth £245,000 and they currently have a joint mortgage of £130,000. Residential Property Solutions Ltd has agreed to buy their property for £170,000, giving them a lump sum of £40,000 which Mark can use to purchase a new home. The rent on the existing property is affordable for Sally, who is planning to remain in there until her children have left their current school when they are 17.